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Macy's sues Martha Stewart Living for breach

Macy's is suing Martha Stewart Living, accusing the company of breach of contract for entering into an agreement to sell certain products to J.C. Penney Company Inc.
/ Source: Reuters

Macy's Inc is suing Martha Stewart Living Omnimedia Inc, accusing the company of breach of contract for entering into an agreement to sell certain products to J.C. Penney Company Inc.

Macy's says Martha Stewart Living granted it the exclusive right to make and sell certain products under a 2006 agreement, according to a New York state Supreme Court filing Monday.

Macy's is seeking a preliminary injunction stopping Martha Stewart from violating the contract. It also is seeking an order sealing the lawsuit and motion, saying it is prohibited from disclosing certain information.

The court filing does not detail the products in question.

Martha Stewart Living agreed "to grant Macy's the exclusive right to manufacture and sell Martha Stewart branded products in certain exclusive product categories," Robert Micheletto, a partner at Jones Day who represents Macy's, wrote in court papers.

"In direct violation of the terms of the agreement, MSLO recently announced it has entered into an agreement with" J.C. Penney Company Inc to sell Martha Stewart products that fall into Macy's exclusive product categories, the papers claim.

Martha Stewart Living did not immediately return a call for comment. Neither did JC Penney or Macy's.

The case is Macy's Inc. v. Martha Stewart Living Omnimedia, Inc., 650197/2012, New York state Supreme Court.