Boston, MA 06/18/2014 (wallstreetpr) – J.C.Penney Company, Inc. (NYSE:JCP) has been accused of unlawfully interfering with a merchandising agreement between Macy’s and Martha Stewart Living Omnimedia, according to a ruling by a New York Judge. The ruling marks the end of a penultimate dispute that has been running for two and half years.
Macy’s Fails to Prove Punitive Damages Claims
The judge in his ruling stated that even though J.C.Penney Company, Inc. (NYSE:JCP) efforts to secure the deal were unethical and improper, Macy’s did not prove that it was entitled to any form of punitive damages. The judge referred damages claims to a special referee.
Judge Oing stated that there was no need for punitive damages as Macy’s as well as its chief executive officer had already been vindicated’ with Penney CEO Ron Johnson consequently losing his job. Stewart merchandise formed a key part of former JCP CEO’s Ron Johnson plan to revive the company with revamped in-store shops.
Macy’s failed to acknowledge the licensing agreement between J.C.Penney Company, Inc. (NYSE:JCP) and Martha Stewart signed in December 2011. Macy’s claimed that Stewarts agreement to sell its home and lifestyle merchandise at J.C.Penney stores violated the exclusive pact that it had signed
Macy’s and Martha Stewart had settled their legal dispute with neither parties disclosing terms of the settlement. Terms of the settlement included, J.C.Penney Company, Inc. (NYSE:JCP) being forbidden from selling any products under Martha Stewart brand. Macy’s has issued a more satisfying statement claiming it is satisfied with the ruling and not surprised.
Macy’s Seeking Damages Payment
The major concern at the moment is whether the two companies will come to an agreement on damage review considering only last year Macy’s, Inc (NYSE:M) claimed it was seeking settlement in the region of 8 figures. J.C.Penney Company, Inc. (NYSE:JCP) initial agreement with Martha Stewart was part of its effort spearheaded by former chief executive Ron Johnson to capture new customers in the mid-market department store
Johnson plan was a total failure as it failed to lure new consumers, going as far as alienating new loyal-customers who shopped at Penney for discount prices.