Martha Stewart was on the witness stand yesterday in a contract dispute over her ability to sell housewares at Macy's (M) and J.C. Penney (JCP), reports the Wwall Street Journal. "It just boggles my mind that we're sitting here," she said. "It's a real problem for a company like ours." Lats year Macy's sued Martha Stewart Living Omnimedia (MSO) in state court in Manhattan after she signed an agreement to sell Martha-Stewart-branded products at Penney. Macy's claims Stewart's company breached their agreement to exclusively sell bedding, cookware and other home products at Macy's.Macy's also has sued Penney, which would create Martha Stewart stores within Penney locations.