Martha Stewart Living Omnimedia Inc. and J.C. Penney are facing charges filed by Macy's over their proposed deal announced in December 2011.

The deal is about the plan agreed by J.C. Penney and Martha Stewart Living to launch Martha boutiques in about 700 department stores of Penney.

Macy's contested that Martha Steward breached its contract for exclusively selling products in certain categories such as bedding and bath items, and cookware at Macy's by signing the deal with J.C. Penney.

In New York state court in proceedings, J.C. Penney chief Ron Johnson was interrogated by Macy's lawyer about his email commanding Martha Steward to break agreement with Macy's once their launch deal is closed.

Testifying in the proceedings, Johnson disclosed that he wanted Martha Stewart in his Penney stores because he believed that the  influence of Martha in home goods was higher than that of any designer on the apparel sector.

Martha Steward is the number one brand of home goods being sold at Macy's.