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Macy’s Files Breach of Contract Lawsuit Against Martha Stewart Living

Posted on Jan 01, 2016

Clothing retailers Macy’s and J.C. Penney are involved in a breach of contract lawsuit pertaining to J.C. Penney’s attempt to sell products made by Martha Stewart Living. In its claim against J.C. Penney, Macy’s alleges that it has an exclusive contract with Martha Stewart Living, and a breach of that contract would cost the company potentially billions of dollars in sales. The lawsuit was filed in the Supreme Court of the state of New York.

In its complaint, Macy’s alleges the following:

  • J.C. Penney entered into a contract with Martha Stewart Living.
  • The contract between these two entities would allow for J.C. Penney to sell some Martha Stewart Living home products at J.C. Penney stores beginning in February 2013.
  • Martha Stewart Living already signed a contract with Macy’s in 2006 that extends (with a renewal) through January 2018.
  • The contract between Martha Stewart Living and Macy’s gave Macy’s the exclusive rights to sell Martha Stewart-branded housewares and bedding, bath, and cookware products.
  • The agreement between J.C. Penney and Martha Stewart Living breaches Macy’s agreement with Martha Stewart Living.
  • J.C. Penney induced Martha Stewart Living into breaching that agreement.
  • As a result of the breach, Macy’s will incur substantial damages.

Macy’s is seeking an order to block the parties from carrying out the contract between J.C. Penney and Martha Stewart Living. The company is also seeking unspecified damages. 

In July, a preliminary injunction was issued preventing Martha Stewart Living from selling its products at J.C. Penney. Martha Stewart Living states that it has not breached the agreement with Macy’s by entering into an arrangement with J.C. Penney.

For more information about the lawsuit involving J.C. Penney, Macy’s, and Martha Stewart Living, contact a New York breach of contract attorney today at (888) 497-3410 for a consultation.

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