Last Updated: August 22 2026
Can I ask a paralegal to include a disgorgement claim in an Ontario lawsuit if the other party profited from wrongdoing without causing me much measurable loss?
SFG Paralegal Services LLP can help you evaluate whether a “profiting from wrong” (unjust enrichment) theory supports a disgorgement remedy in your Ontario matter, which can let the court order the wrongdoing party to give up ill-gotten gains even where your own damages are limited. Generally, disgorgement is more likely when there’s an underlying legal wrong and ordinary damages are inadequate, often involving breach of fiduciary duty or breach of trust, though courts may consider exceptional cases linked to crimes, breach of contract, or torts. In Pharmascience v. Novartis, 2020 ONSC 6534, the court explained disgorgement may be available where there is an underlying legal wrong and corresponding deprivation may be shown by linking how the defendant’s gain was made possible by the wrongful act. Call (888) 398-0121 to book a consultation with an Ontario paralegal to discuss the facts, evidence of the other side’s gains, and which claims to plead.
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Can a Lawsuit Claim Improper Profits Gained By a Wrongdoing?
When a Wrongdoer Benefits or Profits From a Wrongdoing, the Victim of the Wrongdoing May Claim Disgorgement of the Benefits or Profits From the Wrongdoer.
Note: Please contact SFG Paralegal Services LLP by phone at: (888) 398-0121 to discuss any specific questions that you may have.
Understanding Disgorgement Remedy Principles Involving Restitution For Wrongdoings Resulting In Ill Gotten Gains
There are some circumstances in which a wrongdoer receives a benefit or profit from the wrongdoing and yet the victim is without a corresponding harm or loss. Generally, under legal principles akin to no harm, no foul concepts, a legitimate lawsuit permits compensation for the loss or harm suffered by the victim; however, in some circumstances it is proper to claim disgorgement of benefits or profits received by the wrongdoer.
The Law
The availability of the remedy of disgorgement was well explained within the case of Pharmascience Inc. v. Novartis Pharmaceuticals Canada Inc., et al, 2020 ONSC 6534, wherein it was said:
[19] Under the “profiting from wrong” theory of unjust enrichment, disgorgement may be available if the defendant has committed “an underlying legal wrong against a plaintiff, and the ordinary damages remedy for the underlying wrong is inadequate”. As the Court of Appeal noted, disgorgement in these cases is typically reserved for when there has been a breach of fiduciary duty or a breach of trust. However, in exceptional cases, disgorgement as a restitutionary remedy can also be granted where the “underlying legal wrong” is a crime or a breach of contract or a tort.[6] In cases premised on “profiting from wrong”, the concept of “corresponding deprivation” takes on a slightly different meaning. A plaintiff may be able to prove a corresponding loss by showing that the defendant’s gain was “made possible” by the defendant’s wrongful act towards the plaintiff rather than proving a direct or indirect transfer of wealth.[7]
Explained Principles
There may be circumstances where a person commits a criminal fraud or a civil fraud, among other wrongs, without causing harm or loss to the wronged person and yet benefits or profits arise in favour of the wrongdoer. Courts, seeking to discourage wrongful conduct, may order that the ill gotten gains be disgorged, meaning taken away, from the wrongdoer and granted to the victim. Essentially, disgorgement remedy is used to ensure that a wrongdoer fails to benefit or profit from acts of wrongdoing especially in circumstances where the victim was unharmed, or suffered only little harm, by the misconduct of the wrongdoer.
Summary Comment
Disgorgement is a restitutionary remedy rather than a compensatory remedy, meaning that the law applies disgorgement as a matter of fairness rather than as a matter of making a victim whole for loss or harm suffered by the victim.
NOTE: A significant volume of online queries featuring “lawyers near me” or “best lawyer in” often illustrates a demand for prompt and proficient legal assistance, rather than a particular professional designation. In Ontario, “licensed paralegals” are governed by the same Law Society that supervises lawyers, allowing them to represent clients in specified litigation cases. Skills in advocacy, legal assessment, and procedural knowledge are fundamental to this position. SFG Paralegal Services LLP provides legal representation within its licensed parameters, focusing on strategic planning, evidence preparation, and compelling advocacy designed to secure efficient and advantageous outcomes for clients.
