Supreme Court Judge Ruled Penney's Interfered with Macy's Contract

A judge in the New York State Supreme Court ruled in favor of retailer Macy’s. J. C. Penny allegedly cut a deal with Martha Stewart Living Omnimedia Inc. According to Macy’s, the deal made with the previous CEO of Martha Stewart’s company interfered with a merchandising contract. Judge Jeffrey Oing stated that Macy’s did not prove that Penney’s was liable for any punitive damages since their actions were not done in an immoral or malicious way. However, Macey’s still received monetary damages and attorney fees from J. C. Penney because they sold a line of pots, bath towels and different products which were designed by Martha Stewart. These items were sold under the JCP brand, “Everyday” last year. These products were covered under a long standing contract between Martha Stewart and Macy’s. The judge indicated that the executives at Penney’s were “less than admirable” according to the evidence. However, the judge stated that he understood the need to gain an edge over the competition. Penney’s has stated that they are considering an appeal.