Naeem Khan Settles Suit With Ex-Creative Director

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Naeem Khan, an Indian-born American fashion designer who has dressed Michelle Obama, Lady Gagga, Eva Longoria, Beyonce and many other starlets, found himself in a dispute with his former creative director, Lionel Geneste.  Geneste worked for Khan from 2003 to 2006 and at Givenchy before that.  The ex-creative director is seeking $200,000 in unpaid commission claiming breach of contract.  Khan claims Geneste was fired because he discovered Geneste committed "identity theft" by using his boyfriend's social security number.  Khan gave Geneste 18 months to clear up the situation before letting him go.  The case may seem pretty cut and dry but not so, there was much dirty laundry to be aired during the trial.

Macy's & J.C. Penney Trial is Close to an End (Finally!)

The dispute between Macy's and J.C. Penney over Martha Stewart branded home goods is drawing to a close.  Lawyers for both sides gave closing arguments Thursday morning after a three month break.  This means a decision by New York State Supreme Court Judge Oing may be rendered soon, possibly as early as Friday.  The lawsuit started when J.C. Penney entered into a contract with Martha Stewart Living Omnimedia ("MSLO") to sell Martha Stewart goods in "store within a store concept" but Macy's claimed to have exclusive rights to sell Martha Stewart home goods and attempted to block JCP from those sales which was only partially successful.

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.  

J.C. Penney Permitted to Sell Martha Stewart Products, Macy's Appeals (Update!)

Last Friday, Judge Oing gave J.C. Penney the green light to temporary sell Martha Stewart designed products in order to avoid a estimated $100 million loss.  The products will be sold under the JCP Everyday label until the a final decision is rendered.  Had Judge Oing not allowed JCP to sell the products, JCP would be forced to find another way to dispose of the products and be faced with aisles of empty shelves in the home department.  However, JCP is still not allowed to sell Martha Stewart branded house ware products which it has not yet produced anyways.  

Martha Stewart Wins Round One Against Macy's

Martha Stewart's company, Martha Stewart Living Omnimedia won one claim against Macy's when Judge Oing ruled that MSLO did not violate the confidentiality provision of its licensing agreement.  Macy's claimed the agreement was breached when MSLO shared certain details of the contract with J.C. Penney.  The Judge stated that MSLO "had a legal obligation to provide the documents to JCPenney," because JCP was making a substantial investment in the company and both are public companies.  Further, MSLO did take measures to limit the disclosure of information to only those that were necessary.  

Macy's & J.C. Penney Trial Resumes as JCP CEO is Forced Out

The month-long court ordered mediation for Macy's, J.C. Penney ("JCP") and Martha Stewart Living Omnimedia ("MSLO") did not come to any resolution so yesterday, the parties headed back to court to resume the trial over rights to sell Martha Stewart branded items.  (Recap? read here).  

Macy's wasted no time letting Judge Oing know that it it believed JCP had violated the injunction as it caught them selling Martha Stewart branded products that Macy's claimed it had exclusive rights to including plastic champagne flutes and acrylic pitchers.  Macy's lawyers requested that the judge block these sales.  MSLO attorney stressed that since these were disposable items, they did not fall into the exclusive categories as Macy's claims.  Judge Oing granted JCP and MSLO some time to look into Macy's accusations and get back to him.