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Case Study
Case Study
Case Study
vs
McDonald's Restaurants
What
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Where
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When
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Feb 27,1992.
Hospitalized
Suffered -> 3rd degree burns on 6% of her Skin , and lesser burns over 16%. 8 days. Skin grafting. 20 pounds(9 kg) Actual weight 103 pounds(47 kg).
2 years.
Settlement offer
Liebeck sought to setle with Mc Donalds $10,500 past medical expenses $2,500 future medical expenses $5,000 Loss of income McDonalds offered - $ 800
Filed Suit
McDonalds refused to raise its offer. Liebeck retained Texas Attorney Reed Morgan.
Pre-trial attempt
Morgan
Morgan offered to settle for $90,000. Morgan offered to settle for $30,000. Mediator suggested $22,500.
McDonalds
Refused.
Refused.
Refused.
Morgan Argued
Coffee should never be served hotter than 140`F(60`C)
Extra seconds gives time to remove coffee from exposed skin and prevent burns.
McDonalds Argument
Reason to serve hot coffee is Purchasers were commuters. High temperature will keep the coffee hot during the trip. 1982-1992 company received more than 700 people burned report by McDonalds coffee. Settled claim for more than $500,000.
Judgment
12 person Jury reached its verdict on Aug 18, 1994. McDonalds was 80% responsible for the incident.
Liebeck was awarded US $ 160,000 in Compensatory Damages and $480,000 in Punitive Damages. But the parties settled out of court for an undisclosed amount less than $600,000.