Macy’s Denied Restraining Order on Some J.C. Penney Sales

Macy’s Inc. was denied a temporary restraining order halting J.C. Penney Co. from selling some goods designed by Martha Stewart Living Omnimedia Inc. that don’t bear the Stewart brand name.

An appeals court judge in Manhattan refused to halt the sales of the goods, which are labeled under the brand “JCP Everyday,” on the condition that J.C. Penney not associate the products with the Martha Stewart name in promotions or marketing.

Richard Andrias, an associate justice with the New York State Supreme Court’s Appellate Division, granted an expedited schedule for briefing and arguing Macy’s challenge to a lower-court judge’s refusal to grant a similar order blocking the sales.

“Pending an expedited determination of the motion by a full bench of the court, J.C. Penney may continue to sell the unbranded goods in the exclusive product categories,” provided it doesn’t promote, advertise or associate the goods with the name Martha Stewart, Andrias wrote in the ruling.

Eric Seiler, a lawyer for Martha Stewart Living, declined to comment immediately, saying he hadn’t seen the decision. Joey Thomas, a spokesman for J.C. Penney, declined to comment on the ruling in an e-mail.

“While we are disappointed that the appeals court declined to issue a temporary restraining order, it is appropriate that the court made it clear that the JCP Everyday product cannot be associated with the Martha Stewart name in any way,” Jim Sluzewski, a spokesman for Macy’s, said in an e-mail. “We look forward to the full appeals court decision on our request for an expansion of the preliminary injunction that remains in place.”

The cases are Macy’s Inc. v. Martha Stewart Living Omnimedia Inc., 650197/2012, and Macy’s Inc. v. J.C. Penney Corp., 652861/2012, New York State Supreme Court (Manhattan).