First, if property you own or are otherwise responsible for has violated some health, safety, building code or used a banned product, the city can require you to correct the situation; so yes, you may be responsible.Second, however, you may well have a cause of action in turn against the contractor or other person who installed it, for the reason you state--their negligence, in using a banned product, has caused you economic losses. You could recover, potentially, for the repaving, etc. expense and potentially for other provable losses, like loss of business. You should speak with an attorney about this situation, to confirm your exact rights and recourse. Good luck.