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Macy's, J.C. Penney back to court over Martha Stewart dispute

New York -- Macy’s and J.C. Penney are slated to be back in New York state court on Monday unless a last-minute settlement regarding Macy’s right – or not – to sell certain Martha Stewart products is reached.

The two retailers are coming out of a month-long mediation stint, but so far no settlement has been reached.

According to a Monday report by Reuters, witness are scheduled to be on the stand Monday and Tuesday, including J.C. Penney marketing executives.  

"We're all reconvening Monday morning," Jim Sluzewski, a spokesman for Macy's, told Reuters. "The trial is scheduled to resume at ten o'clock."

Macy's sued Martha Stewart Living Omnimedia last year after it signed an agreement to sell Martha Stewart-branded products at J.C. Penney. Macy's claims the agreement breaches its contract to sell certain products exclusively at Macy's. Macy's also sued J.C. Penney over the deal, which includes plans to create Martha Stewart boutiques in J.C. Penney stores.

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