Macy's, J.C. Penney & Martha Stewart Living Ordered into Mediation

Photo via The Associated Press

On March 7th, after almost three weeks at trial, Justice Oing ordered Macy's, J.C. Penney & Martha Stewart Living Omnimedia into mediation.  For a recap of what's going on, click here and here. All three parties agreed to the mediation process and if no resolution is reached by April 8th, Oing will continue to hear the case.

Before the start of the trial, JCP and MSLO were open to mediation, Daphne Avila, a JCP spokeswoman said, but “other parties were not amenable.”  Macy’s declined to comment on prior mediation efforts.


A couple of days prior to the order for mediation, Martha Stewart testified on the stand wearing a camel brown zip vest and matching skirt with a cream colored blouse.  Stewart stated she was "flabbergasted" when Macy's CEO Terry Lundgren hung up on her when she called him to inform him of and discuss the deal with JCP.  Stewart also blamed Macy's for not doing enough to increase sales and exposure and was disappointed that it had turned down her company's efforts to expand into other home goods at the retailer such as organic bedding and high-end crystal for brides. She said that she had expected to reach $400 million in sales at Macy's by 2012, but the number came out closer to $300 million.

With the mediation, JCP agreed not to sell certain Martha Stewart branded items until April although they hoped to have items in stores in time for Mother's Day.  Macy's was said to be considering asking Oing to expand a preliminary ban against MSLO to prevent JCP from selling Stewart-designed goods in certain exclusive categories even if unlabeled with her name.

Justice Oing stated with respect to JCP making certain products available for sale before the case is decided “is a risk that your company and your client took without having a judicial determination as to the rights and remedies or liabilities” involved in this case.

Read More:
WSJ: Macy's, Penney goes into mediation
WSJ: Martha Stewart Expresses Surprise at Macy's 
NY Times: Justice Orders Mediation in Martha Stewart Case