Right to Cure.                                            

FACTS: Metro-North Commuter Railroad Co. decided to install a fall-protection system for elevated walkways, roof areas, and interior catwalks in Grand Central Terminal, in New York City. The system was needed to ensure the safety of Metro-North employees when they worked at great heights on the interior and exterior of the terminal. Sinco, Inc., proposed a system called “Sayflida,” which involved a harness worn by the worker, a network of cables, and metal clips or sleeves called “Sayflinks” that connected the harness to the cables. Metro-North agreed to pay $197,325 for the installation of this system by June 26, 1999. Because the system’s reliability was crucial, the contract required certain quality control processes. During a training session for Metro-North employees on June 29, the Sayflink sleeves fell apart. Within two days, Sinco manufactured and delivered two different types of replacement clips without subjecting them to the contract’s quality control process, but Metro-North rejected them. Sinco suggested other possible solutions, which Metro-North did not accept. In September, Metro-North terminated its contract with Sinco and awarded the work to Surety, Inc., at a price of about $348,000. Sinco filed a suit in a federal district court, alleging breach of contract. Metro-North counterclaimed for its cost of cover.

ISSUE: In whose favor should the court rule, and why?

RESOLUTION: [Sinco, Inc. v. Metro-North Commuter Railroad Co., 133 F.Supp.2d 308 (S.D.N.Y. 2001)] How did the court answer the questions? What did the court decide?

EXPLANATION-Do you agree with the court? Why or why not? Can you change any facts to give a different result?