In the latest twist of the courtroom battle between Macy's, J.C. Penney and Martha Stewart's company, the judge says that J.C. Penney will be allowed for now to sell some Stewart products, for now. Still, Macy's CEO Terry Lundgren told CNBC he does plan to appeal if his company ultimately loses in court.
Macy's sued J.C. Penney and Martha Stewart Living Omnimedia after they announced plans in 2011 to open "Martha Stewart" stores within J.C. Penney's stores. On Friday, the judge involved in the case said J.C. Penney will be allowed to sell its non-branded Stewart-designed products (labeled "JCP Everyday") through the end of the trial until he makes his final decision.
But a previously existing preliminary injunction that prohibited the company from selling branded Stewart products in Macy's exclusive product categories, including bedding, tabletop, etc. still stands.
"It's disappointing that we're in this conversation, and we're doing so in court," said Lundgren, adding that he's never had to do this with any of his other vendor agreements.
Earlier on Friday, the judge made an interim ruling to dismiss Macy's claim of unfair competition against the rival department store. Macy's had claimed that Penney's had engaged in unfair competitive practices.