Dive Brief:
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New York State Supreme Court justice Jeffrey Oing ruled Monday that J.C. Penney Co. interfered with a contract between Martha Stewart Living Omnimedia Inc. and Macy’s by entering a deal to sell Stewart’s home goods.
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In his ruling in Macy's Inc. v. Martha Stewart Living Omnimedia Inc, filed in 2012, the judge had harsh words for J.C. Penney executives and Martha Stewart Living. Calling the Penney-Stewart deal a “colossal failure,” he said it left the retailer financially vulnerable and humiliated. Oing also said the judgment should act as a deterrent against similar action by other companies.
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Under the ruling, Macy’s won monetary damages and attorneys fees, and Penney’s could be liable for profit accrued through sales of 900 Martha Steward Living designs that it sold under its JCP Everyday label. Macy’s had settled with Martha Stewart Living Omnimedia in January.
Dive Insight:
If former J.C. Penney CEO Ron Johnson thought he was finished hearing about his failures at J.C. Penney, here comes New York’s high court letting everyone know his decision to usurp Macy’s entitlement to certain home goods designs was a terrible one for the retailer.
J.C. Penney appears to be turning its fortunes around since Johnson’s departure, but the ruling puts the retailer in a negative light and into another money-losing situation.
