Amazon loses appeal in long running Toys "R" Us case

Ever since their ecommerce partnership dissolved in acrimony five years ago, Amazon.com and Toys "R" Us have been duking it out in court. Now, Amazon seems to have encountered another setback in the long-running legal battle. According to Toys "R" Us' annual report, Amazon lost its appeal of a New Jersey court's 2006 order allowing Toys "R" Us to terminate the two companies' agreement.

Toys "R" Us said Amazon lost the appeal on March 24. The toy company said its claim for monetary damages went back to the New Jersey Trial Court for consideration.

Here's the blurb from the Toys "R" Us annual report:

On March 24, 2009, the Appellate Division affirmed the New Jersey Trial Court’s Order with respect to the termination of the Agreement and denial of Amazon’s counterclaim, but remanded to the New Jersey Trial Court for further proceedings on our claim that we are entitled to monetary damages arising from Amazon’s breach of the Agreement.

Amazon spokeswoman Patty Smith said the company had no comment on the new legal developments. A Toys "R" Us spokesman could not immediately be reached.

Amazon and Toys "R" Us teamed up in 2000 in a major ecommerce alliance. The pact was supposed to last 10 years. But the deal soured when Toys "R" Us accused Amazon of breaking an exclusivity agreement. Toys "R" Us sued, and Amazon countersued. The New Jersey court allowed the dissolution of the agreement in 2006.

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