Court Temporarily Blocks Penney from Selling Stewart Goods

A New York appeals judge on Tuesday stopped J.C. Penney from selling certain Martha Stewart goods until Thursday, when he is expected to decide whether to extend the block while an appeal from Macy's Inc is pending.

The decision is a reprieve for Macy's, after a trial judge ruled on Friday that Penney could sell the items for now under its "JCP Everyday" label as long as they do not bear Stewart's name.

Macy's claims it has the exclusive right to sell Martha Stewart goods in certain categories such as bedding, bath and tableware under a 2006 agreement that lasts through 2018.

The retailer sued both rival Penney and Stewart's company, Martha Stewart Living Omnimedia, after they announced a deal to launch Martha Stewart stores within Penney stores. The trial resumes Wednesday.

Penney declined comment on Tuesday.

(Reporting by Karen Freifeld; Writing by Joseph Ax; Editing by Gary Hill)