In June 1990, a water main under Columbus Avenue in Boston broke, and property owned by the trustees of the 533-535 Columbus Condominium Trust was flooded, causing major damage.

The trustees, who had secured insurance coverage which protected them for such a loss, notified Gulf Insurance. The parties were unable to agree on the amount of the loss, and this action was filed on April 30, 1991. Final judgment was entered July 6, 1993 in favor of the trustees for twice the amount of the loss shown on the proof of loss, plus legal fees and costs. The company appealed.

An independent adjuster hired by the insured estimated the loss at $64,379.78, and the estimate was sent to the company on July 12, 1990. Its adjuster offered $32,055.84, saying "...[This] is the best I can do." The next month, the insured submitted its "sworn statement in proof of loss" for that counteroffer.

On September 14, 1990, Gulf notified the insured of its election to repair or replace the damaged property, as permitted by its policy.

At the trial, the judge found that Gulf did not follow through on its election to repair; that it did not obtain specifications for repair; and did not seek bids, or let contracts, for that purpose. Gulf contended that it was denied access, but this was not supported by evidence.

The insured then proceeded with the repairs.

The trial judge concluded that the insured, under the statute, was entitled to double damages, as well as the attorney fees, and costs.

However, the court, on appeal, affirmed the findings of the lower court, but said the amount of the insured's damage had not been decided, and the action was remanded to the lower court for determination of the loss, and for entry of judgment in favor of the insured for twice the amount of that loss, plus attorney fees and costs.

Mark Williams & others, trustees of the 533-535 Columbus Condominium Trust, v. Gulf Insurance Company--No. 94-P-362--Appeals Court of Massachusetts, Suffolk--November 22, 1995--657 North Eastern Reporter 2d 240.