Judge: J.C. Penney can sell Martha-designed goods for now

NEW YORK A New York State Supreme Court judge says J.C. Penney (JCP) can sell some goods designed by Martha Stewart that were destined for shelves this spring.

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The ruling lets the department store operator sell the items until a lawsuit by rival Macy's Inc. (M) is fully decided.

Macy's had argued in a lawsuit that the goods, which were labeled JCP Everyday, violate its exclusive contract with Martha Stewart Living Omnimedia Inc. to sell certain goods like sheets and towels. The J.C. Penney Co. items don't carry Martha Stewart's name.

Judge Jeffrey Oing says Macy's didn't prove that selling the goods for now would present irreparable harm.

The ruling offers some short-term relief to Penney, in a cash crunch following a failed turnaround plan by recently ousted CEO Ron Johnson.