U.S. Court Revives Macy's Claims vs J.C. Penney Over Martha Stewart

A New York state appeals court on Thursday revived most of Macy's lawsuit accusing J.C. Penney of interfering improperly with its exclusive merchandising contract with Martha Stewart Living Omnimedia Inc. The 5-0 decision by the Appellate Division in Manhattan restored two claims by Macy's that a lower court judge had dismissed. It also upheld the validity of a third Macy's claim, but said Macy's didn't deserve punitive damages. Thursday's decision is the latest step in an unusual battle over the right to sell home goods from a company named for one of the most famous U.S. names in homemaking.