New York Court of Appeals

Fred McConnell, Respondent v. Commonwealth Pictures Corporation, Appellant

March 31, 19607 N.Y.2d 465

Summary

The New York Court of Appeals reversed the lower courts and held that plaintiff McConnell is barred from recovering commissions because his performance of the contract was achieved through commercial bribery, which public policy forbids a court to enforce. The majority applied longstanding New York precedents that deny recovery when a party's claim is founded on his own illegal conduct, even if the underlying contract is facially lawful. Two dissenting opinions argued that the contract itself was lawful and that illegal performance should not defeat recovery, urging affirmation of the lower court's decision.