Question: Babylon Associates contracted to build a water pollution control plant for Suffolk County. It hired Lizza Industries, Inc. as subcontractor to install reinforced "102-inch" pipe. Lizza subcontracted with Clearview Concrete Products Corp. to manufacture the 102-inch pipe. Clearview was convicted of making defective pipe used in the water pollution control plant. The EPA's reduction in its grant for the project and test to determine the soundness of the pipes delayed construction.
The contract with Suffolk County provided that the contractor agreed "to be fully and directly responsible for all acts and omissions of his Subcontractors and of any other person employed directly or indirectly by the . . . Subcontractors." In claiming breach of contract, the county alleged it was entitled to recission of the whole contract and all the money it had paid Babylon. Is it? [Babylon Associates v. County of Suffolk, 475 N.Y.S.2d 869 (N.Y. App. Div.)]