I installed docker-machine 0.1.0 and docker-compose 1.1.0 on Mac OS 10.8.5. Docker-machine is running normally and able to connect by docker-machine ssh.
For me, I started upgrading Docker and cancelled midway. I didn't notice that Docker was not running (if it was, there is an icon at the top nav bar of my Macbook, by the battery remaining, time, etc). Once I launched it, and finished the upgrade, docker-compose up worked again!