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| McDonald's Spilled Coffee Case |
What you know about the McDonald's case is probably based on newspaper accounts and not the facts. As is often the case, there is the rest of the story. Once you get behind the sensational headlines, the conduct of the jury makes much more sense. Mrs. Lieback (the plaintiff) was sitting in the passenger seat (not driving as reported) of her grandson's car holding a coffee after purchasing it from a drive-through window of a McDonald's. When she opened the lid to add cream and sugar, she spilled the coffee. (The car was stopped when she attempted to open the lid, not moving as reported in the papers). The simple accident caused third-degree burns on more than 6 percent of her body, including her inner thighs, perineum, buttocks, and genital areas. She was hospitalized for 8 days. She under went skin grafting and debridement treatment. She has permanent scarring on 16% of her body from the burns and skin grafting. McDonald's served coffee 20 or so degrees hotter than the industry standard. McDonald's had already ignored more than 700 similar claims of coffee burns, many involving children. The company even ignored a request from the Shriner's Burn Institute in Cincinnati to turn down its coffee. Other establishments sell their coffee at substantially lower temperatures, and coffee served at home is generally 135 to 140 degrees. McDonalds served their coffee at between 180 and 190 degrees Fahrenheit. At that temperature, liquids will cause third degree burns on human skin in 2 to 7 seconds. If the coffee was 155 degrees the danger of serious burns would have been much, much lower. McDonald's refused to pay the then 79-year-old woman's initial medical expenses totaling $11,000. McDonald's actually countered with an offer of $800. And they also refused to turn down the heat on their coffee. Left with $20,000 unpaid bills, she finally hired a lawyer. A mediator later recommended the parties settle for $225,000. Again, McDonald's refused and the case went to trial. McDonald's representatives lied to the court and jury about the existence of other claims. A jury reduced the original verdict of $200,000 to $160,000 for contributory negligence - Liebeck spilled it on herself. Based on McDonald's annual profits of more than $1 billion annually, and more than $1.3 million gross daily coffee sales, the jury levied two days of coffee sales receipts as punitive damages for a punitive damage award of $2.7 million. A judge later reduced the $2.7 million jury award to $480,000. McDonald's later settled the case for an undisclosed amount, requesting the deal be kept sealed. Most major newspapers ignored the judge's reduction and the final outcome of the case.
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