Martha Stewart in Court for J.C. Penney-Macy's Dispute

Two of nation's biggest retailers battle for Stewart's brand.
2:25 | 03/06/13

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Transcript for Martha Stewart in Court for J.C. Penney-Macy's Dispute
Thousand to martha stewart's center stage in a dramatic media frenzy and emotional courtroom battle with two of america's biggest stores going head to head over her with accusations of broken contracts and big business back stabbing. Abc's dan harris has the very latest on all of this. Dan, good morning. Good morning. This is a fun trial to watch. The contrasts here are deliciously absurd. This trial involves allegations of ruthless sharp elbowed business deals over such products as linens, stationery, curtains and kitchen ware. Martha stewart walked out of court smiling and taking pictures. They'll break my ankles. Reporter: She was as regal and fussy as ever chiding the photographers get ago nowed when her bodyguard tried to put her in the wrong car and chiding the photographers again. Nearly a decade after she was sentenced to five months in prison for lying to investigators about a stock trade -- today is a shameful day. Reporter: -- She was back on the witness stand tuesday. Stewart who is 71 is in the middle of a fight between two powerful suitors, the heads of macy's and jcpenney. It's gotten emotional. Macy's chief executive terry lungren who is suing both few wart and jcpenney saying he felt sick to his stomach when stewart said she was doing a deal with jcpenney. Lungren thought they had an exclusive arrangement. Looks like we made it. Reporter: Macy's had helped stewart resuscitate her brand after she got out of the clink. Both stewart and jcpenney say there was no breach of contract. On the stand she said "it just boggles my mind that we're sitting here in front of you, judge." Here's the question, could fresh accusations of being a corporate back stabber be yet another blow to the public image of america's pre-eminent domestic diva? She made it through going to prison. Can she make it through being accused of, you know, having really sharp elbows? You know, I think people used to think that martha was nice. I think they've gotten over that. She's somebody whose style they trust. Now, if martha stewart was hoping to use her testimony to seem more relatable there was at least one misstep. When asked whether customers would be willing to buy her products from two stores at the same time she said and I quote here "they might have two houses. They might have two kitchens." Not a problem I have. Oh. Not so relatable. All right. No. Thanks, dan.

This transcript has been automatically generated and may not be 100% accurate.

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