Last Updated: August 22 2026
If a victim suffered little or no measurable loss, can they still seek disgorgement when the wrongdoer profited from the wrongdoing?
Ajodhia Legal Services can help you assess a “profiting from wrong” unjust enrichment claim where the defendant gained ill-gotten profits even if your losses were minimal, by seeking disgorgement to strip the wrongdoing-related benefit instead of only compensating losses. Under the principles described in Pharmascience v. Novartis Pharmaceuticals, 2020 ONSC 6534, disgorgement may be available if there’s an underlying legal wrong and ordinary damages are inadequate, often involving breaches of trust or fiduciary duty, though exceptional cases can involve other wrongs as well. If you want to explore whether disgorgement is realistic in your facts, contact Ajodhia Legal Services at (647) 882-8205 for a paralegal-led review of your options.
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What Can a Victim of Wrongdoing Claim In a Lawsuit If the Victim Was Without the Suffering of a Loss But the Wrongdoer Received a Benefit or Profit From the 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 Ajodhia Legal Services by phone at: (647) 882-8205 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 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: An extensive number of online searches such as “lawyers in my area” or “top lawyer in” usually indicate a pressing need for competent legal assistance rather than a specific designation. In Ontario, licensed paralegals are governed by the same Law Society that regulates lawyers and are permitted to advocate for clients in particular litigation scenarios. Their role focuses heavily on advocacy, legal reasoning, and procedural expertise. Ajodhia Legal Services provides legal representation within its approved mandate, emphasising strategic positioning, the preparation of evidence, and compelling advocacy to secure efficient and favourable outcomes for clients.
