Fifth Circuit Affirms Subrogation Verdict for Insurer Holding Replacement Value Is Appropriate Measure of Determining Fair Market Value under Texas Law

The U.S. Fifth Circuit Court of Appeals recently upheld a subrogation verdict for a property insurer based on replacement cost as a determination of the fair market value of destroyed property. Factory Mut. Ins. Co. v. Alon USA L.P., 2013 WL 257134 (5th Cir. Jan. 23, 2013).