maxx_payne,
Here is an on-line calculator for water hammer;
http://www.lmnoeng.com/WaterHammer/WaterHammer.htm
In your case, the value of A (Pipe cross-sectional area) will be the annulus area and the value of f (Darcy-Weisbach friction factor) should be adjusted to recognize that two (2) surfaces are presented to the flowing fluid... the interior of the jacket and the exterior of the process pipe. Other adjustments may need to be made due to your special situation.
If you doubt that water hammer is the cause of the damage, what other mode do you suspect?
I can imagine a case where the inside process pipe could be damaged through design or operational error if;
1. The process fluid is in the vapor phase
2. The jacket fluid is cooling water
3. The process pipe is isolated for a length of time sufficient for the process fluid to condense
4. The process pipe is underdesigned such that it cannot withstand the resulting differential pressure and therefore collapses.
On the other hand, if water hammer is the culprit and the valve is motor operated, then the rate of closure can be decreased or if it is a control valve, the manufacturer might have an alternative trim which would solve the problem, see;
http://www.engineeringtoolbox.com/control-valves-flow-characteristics-d_485.html
.