Florian v. Bergus - Contract Breach Damages Upheld
Summary
The Massachusetts Appeals Court upheld a lower court's decision awarding $1,108,141.60 in damages for breach of contract. The court affirmed the plaintiff's standing to sue and affirmed the jury-waived trial verdict.
What changed
The Massachusetts Appeals Court has affirmed a Superior Court judgment in favor of Agustin M. Florian, M.D., awarding him $1,108,141.60 in damages and prejudgment interest for breach of contract. The defendants, Boris Bergus, M.D., and Encompass Care Company, Inc., appealed the decision, primarily challenging Florian's standing as an intended beneficiary of the contract. The Appeals Court disagreed with the defendants, finding Florian had standing to sue.
This decision confirms the substantial damages awarded in the lower court. While this is a non-precedential summary decision, it reinforces the importance of clear contractual terms and beneficiary designations. Compliance officers should ensure that contracts clearly define parties' rights and obligations, particularly concerning intended beneficiaries, to avoid future litigation. No specific compliance actions are mandated by this ruling, but it serves as a reminder of potential liabilities in contract disputes.
Penalties
Total damages and prejudgment interest of $1,108,141.60 awarded.
Source document (simplified)
Jump To
Support FLP
CourtListener is a project of Free
Law Project, a federally-recognized 501(c)(3) non-profit. Members help support our work and get special access to features.
Please become a member today.
March 26, 2026 Get Citation Alerts Download PDF Add Note
AGUSTIN M. FLORIAN v. BORIS BERGUS & Another.
Massachusetts Appeals Court
- Citations: None known
- Docket Number: 25-P-0371
Precedential Status: Non-Precedential
Combined Opinion
NOTICE: Summary decisions issued by the Appeals Court pursuant to M.A.C. Rule
23.0, as appearing in 97 Mass. App. Ct. 1017 (2020) (formerly known as rule 1:28,
as amended by 73 Mass. App. Ct. 1001 [2009]), are primarily directed to the parties
and, therefore, may not fully address the facts of the case or the panel's
decisional rationale. Moreover, such decisions are not circulated to the entire
court and, therefore, represent only the views of the panel that decided the case.
A summary decision pursuant to rule 23.0 or rule 1:28 issued after February 25,
2008, may be cited for its persuasive value but, because of the limitations noted
above, not as binding precedent. See Chace v. Curran, 71 Mass. App. Ct. 258, 260
n.4 (2008).
COMMONWEALTH OF MASSACHUSETTS
APPEALS COURT
25-P-371
AGUSTIN M. FLORIAN
vs.
BORIS BERGUS & another.1
MEMORANDUM AND ORDER PURSUANT TO RULE 23.0
After a jury-waived trial pursuant to Superior Court Rule
20(2)(h), the judge entered a verdict on a breach of contract
claim in favor of the plaintiff, Agustin M. Florian, M.D.
(Florian).2 See Rule 20(2)(h) of the Rules of the Superior Court
(2018). Thereafter, the judge ordered the defendants, Boris
Bergus, M.D. (Bergus), and Encompass Care Company, Inc.
(Encompass), to pay Florian a total of $1,108,141.60, which
included damages and prejudgment interest. The defendants
appeal from the entry of final judgment, and we affirm.
1 Encompass Care Company, Inc.
2The plaintiff sued for breach of contract and violation of
the Wage Act, G. L. c. 149, § 150. The judge found in favor of
the defendants on the Wage Act claim.
1. Standing. First, the defendants claim that Florian
lacked standing to sue under this contract, specifically
alleging that he was an incidental, not an intended, beneficiary
of the contract.3 We disagree.4
Neither party has argued that the contract is ambiguous,
and as a result, we may determine whether Florian was an
intended beneficiary as a matter of law. See James Family
Charitable Found. v. State St. Bank & Trust Co., 80 Mass. App.
Ct. 720, 725 (2011). To conclude that a beneficiary was to be
intended, not incidental, we must determine that
"recognition of a right to performance in the beneficiary
is appropriate to effectuate the intention of the parties
and either (a) the performance of the promise will satisfy
an obligation of the promisee to pay money to the
beneficiary; or (b) the circumstances indicate that the
promisee intends to give the beneficiary the benefit of the
promised performance" (quotation and citation omitted).
Rae v. Air-Speed, Inc., 386 Mass. 187, 194 (1982). We will also
look at the circumstances of the contract for indicia of
intention. See Anderson v. Fox Hill Village Homeowners Corp.,
424 Mass. 365, 366 (1997). Furthermore, "there is no
3 The defendants also allege that the principle of equitable
estoppel supports finding that Florian does not have standing.
Because this claim was not raised at trial in defense of the
breach of contract claim, it is waived. See Boss v. Leverett,
484 Mass. 553, 563 (2020).
4 Given our resolution of this issue on alternative grounds,
we need not address Florian's argument as to an oral contract
existing between the parties.
2
requirement that the intended beneficiary be identified by name
in the contract." James Family Charitable Found., 80 Mass. App.
Ct. at 725. Here, for the reasons stated below, Florian was an
intended beneficiary of the contract, evidenced by the language
of the contract and the surrounding circumstances.
At trial, there was testimony that the first draft of the
contract named Florian individually, not as a professional
corporation. Florian testified that one of the main reasons he
wanted to alter the draft to instead name his professional
corporation was for income tax deductions. In addition, there
was testimony that, prior to working for Encompass, Florian's
professional corporation had employees other than him. The
other employees included his son, his wife, and his daughter-in-
law. It is evident from the circumstances that, while the
professional corporation was named in the contract, Encompass
and Bergus were not intending to contract with these other
members of the corporation, but rather for the personal surgical
and medical skills of Florian specifically, further supporting
an intention to give Florian rights under the contract.
Also, the language of the contract stated that there would
be compensation for "the professional services personally
rendered by [the c]ontractor" (emphasis added), as well as
evidence that compensation for these services was very often
3
made to Florian personally, not to Florian, M.D., P.C. The
defendants also initiated their own breach of contract claim
against Florian, and named Florian personally, not as a
professional corporation. From these facts, it follows that the
performance of Florian, personally, was necessary to effectuate
the intention of the parties, and that Florian was intended to
receive the benefit after performance was satisfactory to the
defendants.5 See generally Browning-Ferris Indus., Inc. v.
Casella Waste Mgmt. of Mass., Inc., 79 Mass. App. Ct. 300, 309
(2011) ("There is no surer way to find out what parties meant,
than to see what they have done" [citation omitted]).
- Damages award. The defendants also claim the evidence
at trial was insufficient to support the award of damages in the
amount of $657,799.6 We disagree.
In trials proceeding under Superior Court Rule 20(2)(h),
"we review the judgment according to the standard of review
that would apply to a verdict by a jury in a case tried to
a jury and to the judgment entered thereon. That is,
construing the evidence in the light most favorable to the
5 As part of his argument, Bergus relies on Choate, Hall &
Stewart v. SCA Services, Inc., 378 Mass. 535 (1979). Choate
focused on specifically on creditor beneficiaries and therefore
is inapposite. Id. at 543-548.
6 As part of their challenge to the damages award, the
defendants argue that the evidence at trial did not comport with
the best evidence rule. This argument is raised for the first
time on appeal, and therefore it is waived. See Boss, 484 Mass.
at 563.
4
judgment, the question is whether anywhere in the evidence,
from whatever source derived, any combination of
circumstances could be found from which a reasonable
inference could be drawn in favor of the" plaintiff here.
(Quotations and citations omitted).
Nicosia v. Burn, LLC, 496 Mass. 792, 800 (2025).
"The amount of damages awarded is a factual issue reviewed
on appeal under an abuse of discretion standard." Twin Fires
Inv., LLC v. Morgan Stanley Dean Witter & Co., 445 Mass. 411,
424 (2005). In determining "damages in an action for breach of
contract," the rule "is that the plaintiff is entitled in
general to damages sufficient in amount to compensate him for
the loss actually sustained by him, and to put him in as good
position financially as he would have been if there had been no
breach" (citation omitted). Pierce v. Clark, 66 Mass. App. Ct.
912, 914 (2006). The plaintiff has the burden of proving
damages with reasonable certainty, and while damages cannot be
based on pure speculation, mathematical precision is not
required. See Don v. Soo Hoo, 75 Mass. App. Ct. 80, 85 (2009).
"The fact that there is an element of uncertainty in their
assessment is not a bar to recovery" (alteration and citation
omitted). Carlo Bianchi & Co. v. Builders' Equip. & Supplies
Co., 347 Mass. 636, 646 (1964). In fact, a damages award can
even suffice on meager evidence. Id. "To overturn such an
award, we would have to determine that it was clearly excessive
5
in relation to what the plaintiff's evidence had demonstrated
damages to be" (quotation, alteration, and citation omitted).
Spinosa v. Tufts, 98 Mass. App. Ct. 1, 10 (2020).
Viewing the evidence through the deferential lens
applicable here, we conclude there was a sufficient factual
basis to support the award of breach of contract damages in the
amount of $657,799. There was detailed testimony regarding the
specifics of Florian's work. Florian testified that he
conducted endovascular laser treatments and cosmetic surgeries
at Encompass. He testified that he saw between three and
fifteen patients a day at Encompass, and that he worked two to
three days at first, gradually increasing his schedule to about
four days of work a week. There was testimony that Florian
generated between $800,000 to $890,000 in revenue in 2012, over
$1 million in revenue in 2013, and also testimony that stated
that these revenue totals did not include the revenue from the
cosmetic work that Florian did for Encompass. There was also
evidence that Florian's patient load increased over the years he
worked for Encompass, and that every year that Florian worked
there, Encompass's business increased twenty to twenty-five
percent.
The above evidence supports a finding, conservatively, that
Florian earned at least $4 million in net cash receipts over his
6
almost five years working for Encompass, considering his
approximate yearly revenue from vein treatment. The contract
agreement states that the "[c]linic shall pay [c]ontractor
thirty percent (30%) of the net cash receipts, with a minimum
guaranteed payment of [o]ne [t]housand ($1,000.00) [d]ollars per
service day." Crediting the plaintiff's evidence over the
defendants' contradictory evidence, as was within the judge's
discretion, see Calderone v. Wright, 360 Mass. 174, 176 (1971),
Florian ought to have been paid $1.2 million, or thirty percent
of $4 million. The parties agreed at trial that Florian
received at least $433,052 from Encompass during his time
working there. Therefore, the judge was within his discretion
to find that the evidence supports damages of up to $766,948.
Much of the defendants' arguments on appeal amount to
credibility disputes, which we do not disturb under the
deferential standard applicable here, as "the judge, who has a
firsthand view of the presentation of evidence, is in the best
position to judge the weight and credibility of the evidence"
(quotation and citation omitted). Demoulas v. Demoulas Super
Mkts., Inc., 424 Mass. 501, 509-510 (1997).7
7 The defendants also claim that the court erred in relaxing
the burden of proof that Florian needed to establish damages.
They state that the "meager state" of Florian's evidence is
proof that the judge held Florian to a relaxed burden of proof.
7
3. Prejudgment interest. Finally, the defendants claim
that the judge erred by awarding Florian prejudgment interest
from October 13, 2015, rather than from the date of commencement
of the action, which was April 21, 2016. This argument is
waived and therefore we do not consider it.
Prejudgment interest on damages in cases based on
contractual obligations shall be calculated "from the date of
the breach or demand . . . [and] [i]f the date of the breach or
demand is not established, [prejudgment] interest shall be added
by the clerk of the court from the date of the commencement of
the action." G. L. c. 231, § 6C. The defendants claim that
Florian never established the date of the breach or demand, and
therefore, the prejudgment interest should have been calculated
from the date of the commencement of the action.
Rule 20(8)(b) of the Rules of the Superior Court states
that in Rule 20(2)(h) trials, "parties waive all arguments in
the trial court or on appeal that require or depend upon the
existence of detailed written findings of fact." Rule 20(8)(b)
of the Rules of the Superior Court (2018). "The date of an
alleged breach is a question of fact for the trier of fact."
Karen Constr. Co. v. Lizotte, 396 Mass. 143, 149 (1985). It
But this claim ignores the deferential standard we must apply
here.
8
follows that where there was no finding as to the date of
breach, and the defendants did not request a finding,8 but in
fact waived all detailed findings pursuant to Rule 20(2)(h), the
defendants cannot now complain that the date of breach was not
established.9 Cf. Karen Constr. Co., 396 Mass. at 148-149 (where
judge did not instruct jury to find date of breach for
prejudgment interest purposes, and parties did not object to
judge's failure, argument as to date of breach cannot be raised
on appeal).
Judgment affirmed.
By the Court (Blake, C.J.,
Meade & Tan, JJ.10),
Clerk
Entered: March 26, 2026.
8 The record before us demonstrates that the defendants did
submit special questions to the judge, which the judge denied
including on the verdict slip. However, the actual content of
those questions is not in the record before us.
9 Given our resolution of this matter on alternative
grounds, we decline to address the defendants' argument as to
the date of demand.
10 The panelists are listed in order of seniority.
9
Named provisions
Related changes
Source
Classification
Who this affects
Taxonomy
Browse Categories
Get Courts & Legal alerts
Weekly digest. AI-summarized, no noise.
Free. Unsubscribe anytime.
Get alerts for this source
We'll email you when Massachusetts Appeals Court publishes new changes.