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.
Add this website to Google Preferred Sources
Is There a Type of Legal Compensation Available From a Wrongdoer Who Profits From 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
Disgorgement remedy, as a stripping of ill gotten gains from a wrongdoer, was well explained within the Pharmascience Inc. v. Novartis Pharmaceuticals Canada Inc., et al, 2020 ONSC 6534, case wherein it was stated:
[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. The law, applied by the courts, seeking to discourage and deter wrongful conduct, may order that the benefits or profits be disgorged from the wrongdoer and provided to the victim. In this way the remedy of disgorgement ensures that the wrongdoer fails to benefit or profit from the wrongdoing and is, presumably, discouraged and deterred from engaging in wrongful conduct.
Summary Comment
Disgorgement is a form of restitution rather than compensation whereas disgorgement is applied in law as a matter of fairness rather than as a means for making whole the losses or harms of a victim.
NOTE: A significant quantity of online searches such as “lawyers near me” or “best lawyer in” typically indicate an urgent requirement for effective legal assistance rather than a particular job title. In Ontario, the same Law Society that regulates lawyers also governs licensed paralegals, allowing them to represent clients in specific litigation cases. Advocacy, legal analysis, and procedural expertise are fundamental to this function. SFG Paralegal Services LLP provides legal representation within its authorized mandate, focusing on strategic positioning, evidentiary preparation, and compelling advocacy designed to secure efficient and advantageous outcomes for clients.
