Unjust enrichment happens when one individual receives some benefit at the expense of another. For example, if a party doesn’t pay another for the products received, it’s said to be unjustly enriched. A plaintiff can sue to remedy the situation and receive some benefit. One type of remedy is called disgorgement.

What is Disgorgement?

Disgorgement requires one party who profited from a wrongful or illegal act to give up those profits.

Is Disgorgement Punishment? 

No. Disgorgement is considered a legal remedy, not punishment. A remedy is a type of compensation given to one party via a legal process. The purpose of the remedy is to restore an aggrieved or injured party back to its original “whole” position.

Can I Ask the Court for Disgorgement?

Yes. In a lawsuit a plaintiff can request the court order disgorgement, if the defendant loses.

What Type of Lawsuits is Disgorgement Requested In?

Disgorgement is usually requested in various lawsuits involving:

  • Fraud: The intentional misrepresentation of an existing material fact. The misrepresentation is made with the knowledge of being false and with the intent to induce the other individual to act.
  • False advertisement: Advertisements to the public about a product that are misleading, deceptive, or false.
  • Unfair business practices: The business practices encompasses some sort of fraud, unconscionable act, and oppressive practice by a company.
  • Breach of contract: A breach of contract occurs when a party fails to do or not do something that was part of the terms of an agreement.

Do I Need an Attorney to Request Disgorgement?

Yes. Contact a business lawyer to determine if you have a case where disgorgement can be a legal remedy.