Court questions standing and damages evidence in physician contract dispute

The court heard argument in Augustine M. Florian, MD v. Boris Burgess, MD, a bench-trial Rule 20 appeal that focuses on whether Dr. Florian (plaintiff) was an intended beneficiary of a contract signed in the name of his professional corporation and whether the damages awarded by the lower court were proven with reasonable certainty.

Appellees’ counsel argued the corporation was the contracting party and that plaintiffs had the opportunity to amend or preserve standing; defense counsel criticized the plaintiff’s damages testimony as vague and urged that bills and net-cash-receipt calculations were required to meet the reasonable-certainty standard. Plaintiff-side counsel responded that electronic records, testimony from an office manager and medical records supported the judge’s credibility determinations and the damages calculation, and pointed to precedent allowing judges to weigh testimonial evidence when records are unavailable or unreliable.

The panel questioned whether the trial judge improperly relaxed standards for damages, how to apply Rule 20 review, and whether the accounting of per-diems and 30% net-cash receipts supported prejudgment interest calculations. Counsel also debated waiver and preservation of objections at trial.

The court took the matter under advisement.