Cooperative Power Association, Appellant/cross-Appellee v. Westinghouse Electric Corporation, Appellee/cross-Appellant

BRIGHT, Senior Circuit Judge.

I. INTRODUCTION

This diversity action arose from the sale of a step-up transformer by Westinghouse Electric Corporation (“Westinghouse”) to Cooperative Power Association (“CPA”). CPA brought suit against Westinghouse after the transformer malfunctioned, apparently the result of improperly tightened bushing caps. CPA raised several tort and contract claims, ultimately winning a verdict in excess of $1.4 million on the basis of a negligent misrepresentation claim.

Immediately after the trial, however, the district court 1 vacated the verdict sua sponte and ordered a…