MARTHA STEWART: The CEO Of Macy's Hung Up On Me, And I Was 'Flabbergasted'

Martha Stewart is testifying in New York State Court about her contract with JCPenney. Rival Macy's claims that it has an exclusive deal with Stewart and says she violated their agreement.

Macy's CEO Terry Lundgren revealed the moment he was betrayed by Stewart when he took the stand a week ago.

It's personal.

She called him to tell him about the deal with JCPenney and he ended up hanging up on her.

"I don't know if [Terry Lundgren] said he was disgusted or not, but I was flabbergasted that he hung up on me," Stewart said on the stand today.

Stewart said that she wasn't able to get through half of her points before the conversation ended. She was "very quickly" hung up on, said Stewart.

The Macy's chief said that it was the first time he'd ever hung up on anybody.

But Stewart didn't think it was called for. "We were living up to our contract," she said. MSLO gave Macy's "everything they could possibly need or want."

"I value my friendship with Mr. Lundgren very much," said Stewart. "I think we were getting along well and enjoying our partnership."

Either way, it's pretty much over between them now — at least according to Lundgren.

"I haven't responded to her since that phone call and I don't intend to," he said. "I don't have a personal relationship with Martha Stewart."

It's strange to see such animosity between these two, even though they're in court fighting against each other. After all, Stewart's products are still being sold in Macy's stores, and Lundgren considers her brand very valuable to his department store chain.