Appeals Court Denies Macy's Injunction Against J.C. Penney

Photo: David Handschuh/Bloomberg

Macy's request for a preliminary injunction against J.C. Penney has been denied by the  Appellate Court, giving JCP the right to continuing selling items designed by Martha Stewart Living Omnimedia ("MSLO").  These items will be sold under the "JCP Everyday" label and cannot bear or be marketed under Martha Stewart's name.  Macy's requested the preliminary injunction in order to stop JCP from selling these products while the two companies litigate the claim in New York State Supreme Court before Judge Oing.  The New York State Supreme Court's Appellate Division decision upholds Judge Oing's April 12th ruling in favor of JCP which will allow the company to avoid a estimated $100 million loss.  

This is a huge relief for JCP as it gives them temporary reprieve during the litigation.  However, the Judge may still rule against JCP in the end which would force them to cease sales and possibly pay damages to Macy's and disgorgement of profits.

A decision won't be rendered any time soon even though testimony from both sides have concluded several days ago because closing arguments are not scheduled until June or July.  In the meantime, the attorneys are scheduled to submit post-trial briefs to frame their arguments and evidence in writing one last time.

Read More:

WWD (subscription red'q): Macy's Loses Appeal Ruling in Martha Stewart Case

Reuters: Appeals court won't stop Penney sale of Martha Stewart line

Bloomberg: Testimony Over in Macy’s Martha Stewart-J.C. Penney Suits