McConnell v. Commonwealth Pictures Corp

In McConnell v. Commonwealth Pictures Corp., 7 NY2d 465 (1960) the Court of Appeals was clear that "we are not working here with narrow questions of technical law. We are applying fundamental concepts of morality and fair dealing." Id. The Court, moreover, explained that it is not the case that: "any small illegality in the performance of an otherwise lawful contract will deprive the doer of all rights, with the result that the other party will get a windfall and there will be great injustice. Our ruling does not go as far as that. It is not every minor wrongdoing in the course of contract performance that will insulate the other party from liability for work done or goods furnished. There must at least be a direct connection between the illegal transaction and the obligation sued upon. Connection is a matter of degree. Some illegalities are merely incidental to the contract sued on." Id. at 471 .