Businesses often form contracts with other businesses. Such contracts can involve a wide variety of things and can contain a wide variety of terms.
Sometimes, disputes arise between businesses in regards to contracts. For example, sometimes, a business will accuse another company of breaching a contract they have with each other. Sometimes, a business will take legal action in connection to such an allegation.
Recently, a trial began in a case that involves allegations of breach of contract. The case involves Martha Stewart Living Omnimedia Inc., J.C. Penney Co. and Macy's Inc. Macy's has accused Martha Stewart Living Omnimedia of breach of contract.
Reportedly, in 2006, Martha Stewart Living Omnimedia and Macy's formed a contract with each other which included an exclusivity agreement regarding the sale of certain Martha Stewart products.
According to Macy's, since then, Martha Stewart Living Omnimedia and J.C. Penney reached an arrangement in which Martha Stewart stores would be located inside J.C. Penney locations and would sell Martha Stewart products. Macy's claims that some of the products are similar to the one's covered in the exclusivity agreement of the contract between Martha Stewart Living Omnimedia and Macy's. Based on this, Macy's claims that the arrangement between Martha Stewart Living Omnimedia and J.C. Penney breaches the contract between Martha Stewart Living Omnimedia and Macy's.
Macy's also claims that Martha Stewart Living Omnimedia shared confidential information with J.C. Penney.
A lawsuit was brought by Macy's in a court in New York against Martha Stewart Living Omnimedia in connection to these allegations of breach of contact. Last week, a bench trial began in regards to this lawsuit (the trial also regards a lawsuit Macy's brought against J.C. Penney in regards to the above-mentioned matter). The trial reportedly is expected to be two and a half weeks in length. One wonders what will happen in this trial and what decision the judge in this case will ultimately make.
Source: The Wall Street Journal, "Retailers Take Martha Battle to Court," Chad Bray, Feb. 20, 2013
Our firm handles breach of contract cases and a wide variety of other business litigation matters. To learn more about our practice, visit our New Jersey breach of contract page.