Factory Mutual Insurance Co. v. Alon USA L.P.
An insurance company was awarded damages stemming from an industrial accident that destroyed a waste treatment plant at an oil refinery plant owned by the defendants, who appeal. In calculating market value, the court found that "[t]here is no market for used Scalfuel systems." The district court gave weight to factors such as labor, layout, and installation because the market value of a fully operational Scalfuel plant is greater than the sum of its component parts. Replacement cost was the appropriate measure of damages. The district court's judgment is affirmed. 5th U.S. Circuit Court of Appeals, No. 11-11080, 01-23-2013.