NEW YORK (AP) — A New York State Supreme Court judge ruled in favor of Macy's claim that J.C. Penney interfered with a contract with Martha Stewart Living Media Inc. when it cut a deal to create a collection of home goods in 2011.

J.C. Penney store in California (Justin Sullivan/Getty Images)

But the judge, Jeffrey Oing, said Macy's failed to prove that Penney was liable for punitive damages.

The 63-page decision, issued Monday, came six months after Macy's and Martha Stewart resolved a legal battle to sell home furnishings at Penney. The terms of that deal were not disclosed.

It also follows a move last fall by Penney to scale back its merchandising partnership with Martha Stewart.


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