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
In some circumstances a wrongdoer may receive a benefit or profit arising from the wrongdoing while little, if any, loss or harm arises to the victim of the wrongdoing. Whereas the law generally forbid a person from suing unless a loss or harm has occurred per no harm, no foul principles, a valid lawsuit may involve claims for the illegitimate benefits or profits arising from the misconduct of 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. 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 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 substantial array of online searches for “lawyers in my vicinity” or “top lawyer in” frequently indicates an urgent requirement for competent legal assistance rather than a particular professional designation. In Ontario, “licensed paralegals” are governed by the same Law Society that supervises lawyers, and they possess the authority to represent clients in specified litigation concerns. Advocacy, legal interpretation, and procedural expertise are fundamental to that responsibility. SFG Paralegal Services LLP provides legal representation within its licensed framework, focusing on strategic positioning, evidence preparation, and compelling advocacy aimed at securing effective and advantageous outcomes for clients.
