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Macy's prevails at trial against J.C. Penney for tortiously interfering with Macy's contract with Martha Stewart Living Omnimedia

June 2014

On June 16, 2014, the Supreme Court of the State of New York granted Jones Day client Macy's, Inc. a complete victory, after trial, against J.C. Penney Corporation, Inc. for tortious interference with a license agreement between a Macy’s affiliate and Martha Stewart Living Omnimedia, Inc. ("MSLO"). Under the contract, MSLO granted Macy's an exclusive right to manufacture and sell Martha Stewart house wares, cook ware, bedding, bath towels, and certain other goods. Macy's lawsuit alleged that J.C. Penney tortiously interfered with that contract. In finding J.C. Penney liable for tortious interference, the court concluded not only that MSLO had breached its agreement with Macy’s by entering into an agreement with J.C. Penney and by designing for J.C. Penney products within Macy’s exclusive categories, but that J.C. Penney intentionally induced MSLO to commit those breaches. The court further rejected all of J.C. Penney’s defenses and entered a judgment of liability in favor of Macy’s.

Macy's, Inc. and Macy's Merchandising Group, Inc. v. Martha Stewart Living Omnimedia, Inc., Index No. 650197/2012 (N.Y.) (later consolidated with Macy's, Inc. and Macy's Merchandising Group, Inc. v. J.C. Penney Corporation, Inc., Index No. 652861-2012)

For additional information about this matter, please contact: Theodore M. Grossman, Robert S. Faxon, Michael A. Platt

Client(s): Macy's, Inc.
Office(s): New York, Cleveland