Douglas C. Alton, Jr., (Alton) owned a building in New Bedford that was occupied by a tenant. The New Bedford Police Department obtained a search warrant for the first and second floors of the building. The warrant authorized the police to search for cocaine, implements used in the administration and preparation of controlled substances, currency, records, and receipts used in relation to the distribution, sale, or purchase of cocaine.

The warrant was executed the next day. Police seized cocaine, currency, and miscellaneous documents from the first floor and found nothing on the second floor. Roughly two months later, a second search warrant was executed and contraband was found on the second floor but not the first floor.

While executing the warrants the police caused a total of $17,274 worth of damage to the premises. Alton submitted a claim under his policy with Manufacturers and Merchants Mutual Insurance Company (Merchants). A superior court granted summary judgement in favor of Merchants and Alton appealed

The policy exclusion read:” We will not pay for loss or damage caused directly or indirectly by any of the following. . . “c. Governmental Action: “Seizure or destruction of property by order of governmental authority.”. . . “Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss.”

Alton argued that a search warrant did not constitute an order of government authority within the meaning of the policy. He contended that the policy covered damage caused by a tenant’s criminal activity and therefore, would cover the damage caused by police in apprehending the tenant.

The warrants in question instructed the police as follows: “You are therefore commanded within a reasonable time and in no event later than seven days from the issuance of this search warrant to search for the following property....” Merchant’s argued that the damage caused by the police was indirect damage of the government order. The appellate court affirmed the superior court’s ruling that there was no coverage under the policy.

Alton v. Manufacturers & Merchants Mut. Ins. Co., 416 Mass. 611, 624 N.E.2d 545 (1993)