Martha Stewart Gets Grilled About New Business Deal

The domestic diva is speaking out about being sued by retail giant Macy's over her new deal with J.C. Penney. INSIDE EDITION reports.

It was Martha Stewart back in the hot seat as Matt Lauer grilled her about her dramatic appearance in federal court.

Stewart is being sued by Macy's for allegedly violating an exclusive deal by going to arch rival J.C. Penny to sell Martha products.

Lauer asked, "Did you, when you negotiated the deal with J.C. Penny think it was going to be good for Macy's?"

Stewart said, "Really and truly, we thought it would be good for Martha Stewart Living Omnimedia. We want to be where the consumer wants and needs us."

The domestic diva revealed how she broke the news to Macy's CEO Terry Lundgren in a phone call the night before her deal with J.C. Penny was announced.

Stewart commented on the situation, saying, "Terry Lundgren is a consumate CEO. He is an excellent businessman. He should be able to discuss business in a businesslike fashion. Hanging up on a woman businessperson, I think was rude."

A picture of Martha smiling from the stand in court prompted this question.

"You know what this does Martha? This conjures up memories of 2004 and your conviction and your time in prison. And it damaged your company, your brand, and your reputation. Are you worried, no matter if you are smiling in that picture or not, will do the same?" Matt Lauer asked. 

Stewart responded, "Well, I certainly hope not.

After four hours on the stand, Stewart had to fight her way past photographers and reporters.

71-year-old Stewart wore a short skirt with brown suede ankle boots and pointed a white camera at photographers as she left the Manhattan Supreme Court.

She was also caught cursing when things got a little too pushy.