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Products Liability Keyed Owen, 8th Ed.
Cooperative Power Association v. Westinghouse Electric Corp.
Citation:
493 N.W.2d 661 (1992)Facts
Cooperative Power Association (CPA) purchased a 566 MVA generator step-up transformer from Westinghouse Electric Corporation for approximately $1,600,000 for use at its Coal Creek Station in North Dakota. The contract covered both the transformer and its bushings, which connect the transformer to power lines. During installation, a CPA technician noticed loose caps on two bushings. According to CPA, Westinghouse advised tightening the bushings with channel lock pliers without specifying torque requirements. In December 1988, approximately a year after installation, an electrical arc in a bushing damaged the bushing and contaminated the transformer coils with metal particles, requiring replacement of the bushings and rewinding of the coils. Westinghouse replaced the bushings but refused to pay for rewinding the coils, which led to CPA filing suit.
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