We present observations of SN1997cy, a supernova discovered as part of the Mount Stromlo Abell Cluster SN Search, which does not easily fit into the traditional classification scheme for supernovae. This object's extraordinary optical properties and coincidence with GRB970514, a short duration gamma ray burst, suggest a second case, after SN1998bw/GRB980425, for a SN-GRB association. SN1997cy is among the most luminous SNe yet discovered and has a peculiar spectrum. We present evidence that SN1997cy ejected approximately 2 solar masses of 56Ni, supported by its late-time light curve, and FeII/[FeIII] lines in its spectrum, although it is possible that both these observations can be explained via circumstellar interaction. While SN1998bw and SN1997cy appear to be very different objects with respect to both their gamma ray and optical properties, SN1997cy and the optical transient associated with GRB970508 have roughly similar late-time optical behavior. This similarity may indicate that the late-time optical output of these two intrinsically bright transient events have a common physical process. Although the connection between GRB970514 and SN1997cy is suggestive, it is not conclusive. However, if this association is real, followup of short duration GRBs detected with BATSE or HETE2 should reveal objects similar to SN1997cy.