The two suits were consolidated for the bench trial. Supreme State Court Judge Jeffrey Oing is presiding over the trial, which is expected to last three weeks.
Penney Co. Inc., based in Plano, Texas, is aiming at what it believes is a loophole in the agreement between Macy’s and Martha Stewart. It’s a provision that allows Martha Stewart to sell goods in categories like bedding in Martha Stewart Living’s own stores.
According to Martha Stewart, because the Macy’s agreement doesn’t specify that these Martha Stewart stores have to be ‘stand-alone’ stores, the mini shops within J.C. Penney stores do not fall under the exclusive agreement.
Macy’s Inc., based in Cincinnati, disagrees. Lundgren argued that a typical definition of a store is that it has a parking lot, is part of a mall or has a sidewalk in front.