McConnell v. Commonwealth Pictures Corp.
New York Court of Appeals
166 N.E.2d 494, 199 N.Y.S.2d 483 (1960)
- Written by Jamie Milne, JD
Facts
Commonwealth Pictures Corporation (Commonwealth) (defendant) contracted to pay Fred McConnell (plaintiff) $10,000, plus a percentage of future box-office receipts, if McConnell negotiated a contract with a movie producer that gave Commonwealth distribution rights for certain films. McConnell succeeded in getting the producer to execute a distribution contract in Commonwealth’s favor, and Commonwealth paid McConnell the $10,000. However, for the next 12 years, Commonwealth refused to pay McConnell the agreed percentage of receipts from the films’ distribution. McConnell sued Commonwealth in state court. As part of its defense, Commonwealth asserted that, unbeknownst to Commonwealth or the producer at the time, McConnell illegally bribed the producer’s representative to obtain the distribution rights. The trial court rejected that defense, ruling that one party’s illegal misconduct in executing a legal contract did not excuse the other party from its contractual obligations. The appellate court affirmed, and McConnell appealed to the New York Court of Appeals, the state’s highest court.
Rule of Law
Issue
Holding and Reasoning (Desmond, C.J.)
Dissent (Froessel, J.)
Dissent (Van Voorhis, J.)
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