In February 1989, Fred Cohen was unloading merchandise from a van which was registered to Accessory Group, Ltd. (AGL), when he sustained injuries. He believed that the van was insured under a policy issued by Liberty Mutual. In April, Cohen's attorney notified AGL of the claim. When no reply was received by September, the attorney mailed, and faxed, copies of the claim to Liberty. The attorney also spoke with two of Liberty's representatives. Liberty did not respond.

In December, Liberty searched the Registry of Motor Vehicles database for the title corresponding to the registration assigned to the van and, when nothing was found, made similar searches on December 21 and 22. On the last search, the Registry reported that the number matched one assigned to a van bearing the identification number of a van owned by AGL and insured by Liberty.

Cohen filed suit against AGL. When no appearance was filed for AGL, a default judgment was entered. On March 30, Cohen's attorney notified Liberty of a hearing scheduled to assess damages. Again no response was received; and after making sure that the statutory requirements had been met, the judge entered judgment for Cohen for $90,000, plus prejudgment interest and costs. On April 25, 1990, Liberty was notified of the entry of judgment. No reply was received.

In May, Cohen obtained execution on the judgment. AGL was served in care of Liberty. Finally, at that time, a representative of Liberty called Cohen's attorney and told him she would determine if there was coverage. On June 11, Liberty asked the Rizzo Insurance Agency if the van was covered. On August 7, Rizzo told Liberty it was, but there was a difference in one letter. The van's identification number was shown as "B," while the Registry showed it as "H." Neither the trial court nor the higher court attached any significance to this discrepancy.

On October 26, 1990, Cohen's attorney sent Liberty a demand letter, as required by G.L.c. 93A and G.L.c.176D, alleging unfair and deceptive practices in its handling of the Cohen claim against AGL and demanding immediate payment. Liberty did not respond. In January 1991, this action was filed against AGL and Liberty alleging the statutory violations. Liberty admitted that its policy issued to AGL covered the van. In August 1991, Liberty at last concluded that the van involved in Cohen's accident was covered under AGL's policy issued by Liberty and then offered the $20,000 limit under that policy. Cohen rejected the offer.

A Superior court judge determined actual damages to be $20,000 plus interest from August 7, 1990, to the date of entry of judgment. In addition, since the court found that Liberty had knowingly violated the statutes involved, the judge trebled the $20,000 and the interest and also allowed Cohen $9,500 for his attorney's fees, plus the costs of the action.

Liberty appealed, but the higher court affirmed the judgment.

Fred Cohen v. Liberty Mutual Insurance Company-No. 94-P-1958-Appeals Court of Massachusetts, Suffolk-December 4, 1996-673 North Eastern Reporter 2d 84.