Babylon Assoc. v. County of Suffolk

In Babylon Assoc. v. County of Suffolk, 101 AD2d 207 [1984], the Appellate Division, Second Department found that dismissal of the municipal owner's counterclaim impleading the contractor's sureties was improperly dismissed where the terms of the performance bond did not limit the sureties' liability solely to the cost of completion of the underlying contract, incorporated by reference the terms of said contract and the sureties' liability under the bond appeared to be coextensive with the principal contractor's liability. In so finding, the court stated that, based upon the foregoing, a triable issue of fact existed as to the parties' intention concerning the extent of the sureties' liability.