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McDonald's Case

Essay by   •  November 7, 2012  •  Case Study  •  336 Words (2 Pages)  •  1,320 Views

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In August 1992, 81 year-old Stella Liebeck pulled up to a McDonald's drive-through

window in Albuquerque, New Mexico, to purchase a cup of coffee. After buying a 49-

cent cup of coffee, Liebeck placed the coffee container between her legs, removed the lid,

and proceed to pull away from the drive-through window. As she drove away, coffee

spilled. She suffered from second and third degree burns on her inner thighs, buttocks,

and groin area. Treatment of the inquiries required hospitalization and surgery. Stella

Liebeck asked McDonald's to reimburse her with a $11,000 for medical bills.

McDonald's responded to Liebeck's request by presenting her with a counteroffer of a

lesser amount. Dissatisfied with that offer, Liebeck sought legal representation.

During the trial, attorneys for Liebeck argued that McDonald's was negligent in its

failure to reduce the temperature of its coffee. According to Morgan, McDonald's

officials have known about hundreds of java-related injuries dating back to 1978, and

could easily have solved the problem by serving their coffee at a lower temperature.

Testimony from an array of burn experts approximately support this argument. The

temperature of the coffee that injured Liebeck was estimated at between 180-l 90 degrees

based on advice from a coffee consul.tant, who said that its coffee is served at tastes best

at that temperature. The restaurant had received more than '7~0 reports ,,f coffee burns

ranging from mild to third degree.

In August 1994, almost 2 years after Stella Liebeck had been burned. anAlburquerque,

New Mexico jury decided in favor of the plaintiff. The jury awarded Liebeck $2.7

million in punitive damages and $160,000 in compensatory damages -a sum almost tern

times the $300,000 originally sought. McDonald's said it believed the settlement was

excessive and immediately followed with a statement announcing it would appeal the

decision. McDonald's coffee continues to be served at the 180 to 190 degree industry

standard.

i. Who

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