HELMUT FLOESSER v. BELMONT INSTRUMENT CORP. & Others.
24-P-0227
Mass. App. Ct.Jul 14, 2025Background:
- Helmut Floesser, a former employee and consultant for Belmont Instrument Corp., purchased 22,000 shares in the company under an equity plan between 2007 and 2015.
- In 2017, the company issued a cash dividend and later engaged in a merger; Floesser was not paid dividends and was only compensated for 18,000 of his 22,000 shares despite requesting payment for all.
- Floesser sued Belmont, alleging breach of contract and breach of fiduciary duty.
- A jury verdict found in favor of Floesser on both claims.
- Belmont appealed, citing alleged errors related to a late-disclosed rebuttal witness, claimed misstatements of law during closing arguments, and alleged cumulative prejudicial error.
- The Appeals Court affirmed the jury's verdict for Floesser.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Admission of Late-Disclosed Rebuttal Witness | Proper notice given, no prejudice, disclosure timely | Witness disclosed too late, unfair surprise/prejudice | No abuse of discretion, testimony allowed |
| Curative Instructions on Misstatement of Law | No misstatement; judge's instructions cured any issue | Closing mischaracterized breach of fiduciary duty law | No error or prejudice, instructions sufficient |
| Cumulative Error | No cumulative error since no single error existed | Combination of errors requires reversal | No cumulative error, judgment affirmed |
Key Cases Cited
- Eagan v. Marr Scaffolding Co., 14 Mass. App. Ct. 1036 (standards for admitting late-disclosed witnesses)
- Commonwealth v. Trapp, 423 Mass. 356 (judge’s discretion for late-disclosed witnesses)
- Laramie v. Philip Morris USA Inc., 488 Mass. 399 (reviewing facts in light most favorable to prevailing party)
- Blank v. Chelmsford Ob/Gyn, P.C., 420 Mass. 404 (bad faith failure to pay as potential breach of fiduciary duty)
- Merriam v. Demoulas Super Mkts., Inc., 464 Mass. 721 (framework for fiduciary duty breaches)
- Commonwealth v. Ridley, 491 Mass. 321 (presumption jury follows judge’s instructions)
