Macy’s (M) has been handed a partial victory in its court fight against JCPenney (JCP) over a merchandising contract with home decor diva Martha Stewart.
In a 63-page ruling issued on Monday, New York State Supreme Court Judge Jeffrey Oing found that JCP’s 2011 deal with Martha Stewart Living Omnimedia (MSO) to develop home goods for JCP stores did infringe on an Martha Stewart’s existing agreement with M. However, the court also ruled that JCP won’t have to pay punitive damages to M, the Associated Press notes.
M and Martha Stewart made a separate agreement months ago to settle a lawsuit over the JCP deal.
The judge may still award M specific non-punitive monetary damages relating to the agreement and attorney’s fees.
Though it won’t have to pay punitive damages to Macy’s, JCP said it was “disappointed” with the decision and is mulling an appeal.
Both M stock and JCP shares gained on the news. M shares rose modestly, while JCP stock climbed almost 1% in Tuesday midday trading, while MSO stock fell more than 2%.
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