In 1992 there was a verdict rendered in New Mexico against McDonald’s. The case related to hot coffee. A jury verdict was in the amount of $2.86 Million.
The plaintiff was Stella Liebeck. Ms. Liebeck was a passenger in a car driven by her grandson. After receiving the cup of coffee in the drive-thru lane, the grandson pulled the car forward and stopped. Ms. Liebeck wanted to add cream and sugar to her coffee. She placed the cup between her knees and attempted to remove the plastic lid. She suffered full thickness third degree burns over 6% of her body including the inner thigh, buttocks and genital area. Ms Liebeck was hospitalized for 8 days.
McDonald’s Coffee Case-Scalding
It turns out the coffee was not just hot but it was scalding. It was 180° to 190°. At that level, the hot fluid could cook through all layers of skin within seconds.
Ms. Liebeck asked for a total of $20,000 to cover her medical bills in settlement. The case went to mediation but McDonald’s refused to settle.
During the course of discovery, it was learned that more than 700 claims had been filed by people who had been burned over the last 10 years. The Quality Assurance Manager of McDonald’s acknowledged that a burn hazard exists with any food substance that is served at 140° or more. He further admitted that this coffee was not fit for human consumption and in fact they admitted it was 40° to 50° hotter than is fit for human consumption.
McDonald’s Coffee Case-No Change in Policy
McDonald’s told the jury they would not lower its coffee temperature because they felt that most people bought hot coffee to take it to the office and by the time it got to the office, it would have cooled. In fact the evidence indicated that most people begin drinking their coffee immediately upon purchasing it.
After the trial, the trial judge reduced the punitive damage award to $480,000. The jury had awarded $200,000 as compensatory damages. That was reduced to $160,000.
The parties engaged in post-verdict mediation which resulted in a settlement. There was no appeal.
McDonald’s did immediately thereafter lower the temperature of its coffee.
McDonald’s Coffee Case-Punitive Damage Award-Not Common
Many corporations want Americans to think that huge punitive damage awards are a frequent fixture and that they cripple businesses, thereby raising consumer prices. That is not so. In fact in product liability cases, on average there are 14 punitive damage awards per year. That equates into 1 per state every 4 years.
In America, a driver who kills someone can be imprisoned. A corporation however that maims someone through third degree burns cannot be put in prison. Punitive damages serve the function of punishing those entities that engage in outrageous conduct as was the case brought by Ms. Liebeck.
Call, or contact us for a free consult. Also for more info on product liability see the Wikipedia pages. Also see the post on this site dealing with product liability issues.
