Duquesne Light Company v. Westinghouse Electric Corp.

Duquesne Light Company, the Cleveland Electric Illuminating Company, the Toledo Edison Company, Ohio Edison Company, and the Pennsylvania Power Company (collectively, the power companies) (plaintiffs) entered into a contract with Westinghouse Electric Corporation (Westinghouse) (defendant). Under the contract, Westinghouse agreed to supply steam systems for a nuclear power station owned by the power companies. The contract did not provide any guarantee for how long the steam systems would last, but a separate technical specification made as part of the bid for the contract declared that “[c]onsideration shall be taken of all [steam-system] components subject to the loss of ductility arising from integrated neutron exposure (nvt) based on a minimum station life of 42 y[ea]r[s] operating at an 85 per cent load factor.” However, the steam systems were not subject to this loss of ductility. The steam systems began to deteriorate in quality less than 15 years after installation and required replacement. The power companies brought suit against Westinghouse, alleging that the contract guaranteed that the steam systems would last for at least 40 years and stating a claim for breach of contract due to a failure to deliver conforming goods. After the power companies presented their case to the jury, Westinghouse moved for judgment as a matter of law, which the trial court granted. The power companies then appealed to the Third Circuit.