McDonald's
Scalding Coffee Case
Read
about the Wall Street Journal article on this
case.
Critics
of civil justice and juries have pounced on the
McDonald's coffee case, calling it 'frivolous' and
'laughable'. However, it was McDonald's own testimony and
actions that led a jury to rule against it.
Facts
About the Case
Stella
Liebeck of Albuquerque, New Mexico, was in the passenger
seat of her grandson's car when she was severely burned
by McDonald's coffee in February 1992. Liebeck ordered
coffee that was served in a Styrofoam cup at the
drive-through window of a local McDonald's. Critics of
civil justice often charge that Liebeck was driving the
car or that the vehicle was in motion when she spilled
the coffee; neither is true. After receiving the order,
the grandson pulled his car forward and stopped
momentarily so that Liebeck could add cream and sugar to
her coffee. Liebeck placed the cup between her knees and
attempted to remove the plastic lid from the cup. As
Liebeck removed the lid, the entire contents of the cup
spilled into her lap. The sweatpants Liebeck was wearing
absorbed the coffee and held it next to her
skin.
Stella
Liebeck's Injury and Hospitalization
A
vascular surgeon determined that Liebeck suffered full
thickness burns (or third-degree burns) over 6 percent of
her body.
Liebeck
suffered burns on her inner thighs, perineum, buttocks,
and genital and groin areas. She was hospitalized for
eight days, during which time she underwent skin grafting
and debridement treatments (the surgical removal of
tissue).
Stella
Liebeck's Initial Claim
Liebeck
sought to settle her claim for $20,000, but McDonald's
refused.
McDonald's
Attitude
During
discovery, McDonald's produced documents showing more
than 700 claims by people burned by its coffee between
1982 and 1992. Some claims involved third-degree burns
substantially similar to Liebeck's. This history
documented McDonald's knowledge about the extent and
nature of this hazard. McDonald's also said during
discovery that, based on a consultant's advice, it held
its coffee at between 180 and 190 degrees Fahrenheit to
maintain optimum taste. Other establishments sell coffee
at substantially lower temperatures than at McDonald's.
Coffee served at home is generally 135 to 140
degrees.
Damaging
Testimony
McDonald's
own quality assurance manager testified that a burn
hazard exists with any food substance served at 140
degrees or above and that McDonald's coffee was not fit
for consumption because it would burn the mouth and
throat. The quality assurance manager further testified
that the company actively enforces a requirement that
coffee be held in the pot at 185 degrees, plus or minus
five degrees. He also testified that while burns would
occur, McDonald's had no intention of reducing the
"holding temperature" of its coffee. Plaintiff's expert,
a scholar in thermodynamics as applied to human skin
burns, testified that liquids at 180 degrees will cause a
full thickness burn to human skin in two to seven
seconds. Other testimony showed that as the temperature
decreases toward 155 degrees, the extent of the burn
relative to that temperature decreases exponentially.
Thus, if Liebeck's spill had involved coffee at 155
degrees, the liquid would have cooled and given her time
to avoid a serious burn.
McDonald's
asserted that customers buy coffee on their way to work
or home, intending to consume it there. However, the
company's own research showed that customers intend to
consume the coffee immediately while driving. McDonald's
also argued that consumers know coffee is hot and that
its customers want it that way. The company admitted its
customers were unaware that they could suffer
third-degree burns from the coffee and that a statement
on the side of the cup was not a "warning" but a
"reminder" since the location of the writing would not
warn customers of the hazard.
According
to The Wall Street Journal
A
Jury of One's Peers
The
Wall Street Journal wrote (September 1, 1994), "The
testimony of Mr. [Christopher] Appleton, the
McDonald's executive, didn't help the company, jurors
said later. He testified that McDonald's knew its coffee
sometimes caused serious burns, but hadn't consulted burn
experts about it. He also testified that McDonald's had
decided not to warn customers about the possibility of
severe burns, even though most people wouldn't think it
possible. Finally, he testified that McDonald's didn't
intend to change any of its coffee policies or
procedures, saying, 'There are more serious dangers in
restaurants.' "The Journal quoted one juror, Jack
Elliott, remarking after the trial that the case had been
about such "callous disregard for the safety of the
people."
The
Journal story continued, "Next for the defense came P.
Robert Knaff, a human-factors engineer who earned $15,000
in fees from the case and who, several jurors said later,
didn't help McDonald's either. Dr. Knaff told the jury
that hot-coffee burns were statistically insignificant
when compared to the billion cups of coffee McDonald's
sells annually. To jurors, Dr. Knaff seemed to be saying
that the graphic photos they had seen of Mrs. Liebeck's
burns didn't matter because they were rare. 'There was a
person behind every number and I don't think the
corporation was attaching enough importance to that,'
says juror Betty Farnham."
At the
beginning of the trial, jury foreman Jerry Goens told the
Journal, he "wasn't convinced as to why I needed to be
there to settle a coffee spill." By the end of the trial,
Betty Farnham told the Journal, "The facts were so
overwhelmingly against the company. They were not taking
care of their customers."
The
Verdict
The
jury awarded Liebeck $200,000 in compensatory damages.
This amount was reduced to $160,000 because the jury
found Liebeck 20 percent at fault in the spill. The jury
also awarded Liebeck $2.7 million in punitive damages,
which equals about two days of McDonald's coffee sales.
Post-verdict investigation found that the temperature of
coffee at the local Albuquerque McDonald's had dropped to
158 degrees Fahrenheit. The trial court subsequently
reduced the punitive award to $480,000, or three times
compensatory damages, even though the judge called
McDonald's conduct reckless, callous and willful.
Subsequent to remittitur, the parties entered a
post-verdict settlement.