Case Study

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Stella Liebeck

vs

McDonald's Restaurants

Order a cup of Coffee


Who -> Stella Liebeck, from Albuquerque, New Mexico. Ordered a 49 cent cup of coffee.

What

->

Where

->

McDonalds restaurant 5001,Gibson Boulevard.

When

->

Feb 27,1992.

Spilled the cup of coffee


Liebeck was seated in her grandsons Ford Probe. She placed the coffee cup between her knees. She pulled the lid which spilled the entire cup of coffee on her lap and it burnt her skin.

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).

Remained in hospital Underwent Lost weight

-> -> ->

Followed Medical treatment ->

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

For $20,000 to cover actual and expected expense

Filed Suit
McDonalds refused to raise its offer. Liebeck retained Texas Attorney Reed Morgan.

Morgan filed suit in New Mexico District Court.


Accused McDonalds of Gross Negligence for selling Unreasonably dangerous and defectively manufactured coffee.

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.

Trial Aug 8-17, 1994.

Judge Robert H. Scott.

During the Case


Morgan Discovered
McDonalds required franchises to serve coffee at 180190`F(82-88`C)

Morgan Argued
Coffee should never be served hotter than 140`F(60`C)

Coffee would cause 3rd degree burn in 2-7 seconds.

Other establishments serve coffee at a lower temperature than the McDonalds

Presented the Jury with evidence

180`F(82`C) coffee produce 3rd degree burns in 2-7 seconds

160`F(71`C) coffee produce burns in 15 seconds

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.

The number of injuries was insufficent to evaluate companys practices.

McDonalds quality control manager


Christopher Appleton argued all food hotter than 130`F(54`C) will cause burns. Company warns consumers He accepted McDonalds coffee would burn mouth and throat if taken when served.

Judgment
12 person Jury reached its verdict on Aug 18, 1994. McDonalds was 80% responsible for the incident.

Liebeck was 20% at fault.


Inspite of warns on a coffee cup, jury decided warning was not large enough to read and not sufficient.

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.

THE COURT IS ADJOURNED

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