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260 N.E.3d 309
Mass.
2025
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Background

  • Following a fatal car crash involving Liberty’s insured, police instructed Tody’s Service, Inc. (Tody’s) to tow and hold the insured’s vehicle for evidentiary purposes during a criminal investigation.
  • The vehicle remained in Tody’s possession, under police hold, for nearly three years (2016-2019), during which Liberty paid Tody’s only for initial towing services, not storage.
  • Liberty ultimately took title to the vehicle but did not take physical possession until the police released it in 2019.
  • After police released it, Tody’s billed Liberty $118,290 for storage (over 1,000 days), which Liberty refused to pay, offering only the vehicle’s salvage value/title instead.
  • Tody’s sued Liberty in Superior Court seeking storage fees based on unjust enrichment, promissory estoppel, and statute; summary judgment was granted to Liberty.
  • On direct appellate review, the Supreme Judicial Court considered whether Liberty was liable for storage fees under any asserted theory.

Issues

Issue Plaintiff’s Argument Defendant’s Argument Held
Unjust enrichment Liberty benefited by having evidence preserved for defense No measurable benefit; Liberty didn't use vehicle Liberty not unjustly enriched
Promissory estoppel Liberty’s appraiser implied a promise to pay storage No reliance; Tody’s acted on police directive No reliance; promissory estoppel not established
Private right under §6B Statute permits Tody’s to sue for unpaid storage fees Statutory remedy is only a storage lien/sale right No private right of action; claim dismissed
Fair value limitation Storage fees recoverable beyond vehicle’s fair market value Not germane/waived due to other claim failures Did not reach/need to address

Key Cases Cited

  • Columbia Plaza Assocs. v. Northeastern Univ., 493 Mass. 570 (2024) (sets elements for unjust enrichment and promissory estoppel)
  • Salamon v. Terra, 394 Mass. 857 (1985) (differentiates quasi-contract theories and unjust enrichment)
  • Dines v. Liberty Mut. Ins. Co., 28 Mass. App. Ct. 195 (1990) (establishes market value limits on recovery for involuntarily towed vehicles)
  • Hill-Junious v. UTP Realty, LLC, 492 Mass. 667 (2023) (summary judgment standard)
Read the full case

Case Details

Case Name: Tody's Service, Inc. v. Liberty Mutual Insurance Company
Court Name: Massachusetts Supreme Judicial Court
Date Published: Jun 20, 2025
Citations: 260 N.E.3d 309; 496 Mass. 197; SJC-13710
Docket Number: SJC-13710
Court Abbreviation: Mass.
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    Tody's Service, Inc. v. Liberty Mutual Insurance Company, 260 N.E.3d 309