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Judge won’t dismiss part of Martha Stewart lawsuit

NEW YORK — A New York State Supreme Court judge has rejected a motion by Martha Stewart Living Omnimedia Inc. lawyers to dismiss Macy’s Inc.’s claim that Martha Stewart breached its contract when it signed a merchandising deal with J.C. Penney Co.

Lawyers for Martha Stewart argued Thursday that the exclusive contract with Macy’s in certain products like bedding and bath items did not give exclusivity on design work. But Judge Jeffrey Oing ruled Thursday that Macy’s has provided sufficient evidence in its arguments that the contract does cover exclusivity in designs even if the items don’t carry the Martha Stewart name.

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Oing cautioned that his ­decision not to dismiss the claim doesn’t mean Macy’s will win the lawsuit.

Macy’s shares closed down 5 cents to 44.31 Thursday.

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