Appeals court revives Macy’s Martha Stewart claims against Penney

New York – A state appeals court in New York has revived two claims Macy’s Inc. made against J.C. Penney Co. Inc. in a long-running dispute between the two department store chains about who has the right to sell Martha Stewart Living home products.



According to Reuters, in a unanimous decision, judges in the Manhattan Appellate Division ruled that Penney breached confidentiality provisions of Macy’s contract with Martha Stewart Living Omnimedia and Penney’s actions amounted to unfair competition.



In June 2014, New York State Supreme Court Justice Jeffrey Oing ruled that Penney violated Macy’s exclusivity rights to sell Martha Stewart-branded home goods, but ruled that Penney’s actions did not rise to the level of breaching confidentiality or unfair competition.



"JCP misappropriated Macy's labor, skill, expenditures, and good will, all the while demonstrating bad faith in pursuing its objective," Justice John Sweeny wrote in the appeal decision, according to the report. However, the appellate court ruled against Penney having to pay punitive damages.



In January 2012, Macy’s sued Martha Stewart Living for breach of contract, and then filed suit against J.C. Penney in August. The suits result from Penney entering into a contract to sell Martha Stewart Living goods in 2011, which Macy’s said violated an exclusive agreement it signed with Martha Stewart Living in 2006.



Penney filed its own appeal of Oing’s ruling in June 2014.