In what is believed to be the first court ruling in Massachusetts where a court upheld in a first party claim the right of a policyholder to be paid a labor rate other than what the insurer set, District Court Judge Paul V. Buckley, Jr. ruled that Arbella Mutual Insurance Company must pay its insured the $602.80 it had initially refused to pay for labor charges.
The judge decided the insurer failed to prove the rate charged by the shop (Factory Collision and Restoration of Weymouth, MA.) was unreasonable and that the insured’s policy did not make her aware that
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