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Macy’s Seeks Injunction in Martha Stewart Contract Suit

Feb. 2 (Bloomberg) -- Macy’s Inc. asked a New York state Supreme Court justice to issue a preliminary injunction against Martha Stewart Living Omnimedia Inc. in a filing yesterday in Manhattan.

The retailer sued in New York state Supreme Court on Jan. 23 seeking to stop New York-based Martha Stewart Living from executing a new sales agreement with J.C. Penney Co. Macy’s, based in Cincinnati, said it renewed a 2006 agreement for Martha Stewart-branded products that expires in 2018.

In court documents filed yesterday, lawyers for Macy’s asked Justice Jeffery K. Oing to issue the injunction, saying that the agreement grants the retailer an exclusive right to make and sell Martha Stewart products in certain categories and the right to refuse to make and sell other products that are within Macy’s product line.

An injunction is necessary to prevent Macy’s from “suffering immediate, continuing and incalculable harm as a result of the unexplained and unlawful breach by defendant Martha Stewart Living Omnimedia Inc. of its exclusive license to Macy’s,” lawyers for Macy’s said in the court documents.

“We value our relationship with Macy’s and are confident that we are not breaching the terms of our agreement, Jeanne Meyer, a spokeswoman for Marth Stewart Living, said in an e-mail. ‘‘MSLO believes it’s good for our partners, our consumers and our brand to have a wide range of Martha Stewart products available in a variety of top retailers and we structure all of our commercial agreements with this strategy in mind.”

The case is Macy’s Inc. v. Martha Stewart Living Omnimedia Inc., 650197/2012, New York State Supreme Court (Manhattan).

To contact the reporter on this story: Chris Dolmetsch in New York at cdolmetsch@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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