Martha Stewart was back in court on Tuesday, this time to defend her decision to open shops within JCPenney stores, despite her exclusive contract with Macy’s.

Legal Analyst: Martha Stewart Can Turn the JCPenney/Macy’s Case Into a Win
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According to CNBC, the domestic diva spent hours on the stand in New York State Supreme Court denying allegations that she breached her contract or acted unethically. "It just boggles my mind that we're sitting here," she said.

Stewart’s defense team has honed in on a loophole in her Macy’s contract that allows the home expert to sell certain goods in Martha Stewart stores. They now refer to her JCPenney presence as a store within a store.



Soon after Martha Stewart Living Omnimedia inked the Penney deal in December 2011, Macy’s renewed its contract until 2018 and filed a suit against Stewart and Penney.

Martha told the court that her company sales had grown “static” and that she had hoped to raise her profits from $300 million to $400 million.

"We were disappointed," the 71-year-old testified. "We did have hopes that the business would be much bigger... we got to a certain dollar amount and struggled and never got any further."

Despite the legal bickering, former prosecutor and author Loni Coombs told “Extra” that Martha could still turn the case into a win. “It's JCPenney and Macy’s fighting over her,” Coombs said. “She's going to come out with a big contract and lots of money.”

Check out Loni's latest work, including her book "You're Perfect… and Other Lies Parents Tell," at LoniCoombs.com.

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