Westinghouse Electric Corporation (Westinghouse) (defendant) sold a defective transformer to the Cooperative Power Association (CPA) (plaintiff). The defect damaged the transformer but nothing else. CPA brought a products-liability suit against Westinghouse in federal district court. Westinghouse filed a motion for summary judgment, arguing that CPA’s damages can be remedied in contract law only, not in tort law. The district court certified to the Supreme Court of North Dakota the question of whether a manufacturer of a machine sold in a commercial transaction could be held liable in tort for economic loss, which was caused by a failure of a component part of the machine that caused damages to the machine only.