Liebeck v. McDonald's Restaurants

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Liebeck v. McDonald's Restaurants,[1] also known as the “McDonald's coffee case,” is a well-known 1994 product liability lawsuit that became a flashpoint in the debate in the U.S. over tort reform after a jury awarded $2.86 million to a woman who burned herself with hot coffee. The trial judge reduced the total award to $640,000, and the parties settled for a confidential amount before an appeal was decided. The case entered popular understanding as an example of frivolous litigation;[2] ABC News calls the case “the poster child of excessive lawsuits.”[3]

Others, especially opponents of tort reform, argue that Liebeck's recovery was just. They argue that the popular understanding of the case omits significant and relevant information. Liebeck's attorneys argued that McDonald's coffee was "defective", claiming that it was hotter and more likely to cause serious injury than coffee served elsewhere. Moreover, McDonalds had refused several prior opportunities to settle for less than the $640,000 ultimately awarded.[4] Reformers defend the popular understanding of the case as materially accurate; note that the vast majority of judges to consider similar cases dismiss them before they get to a jury; and argue that McDonald's refusal to offer more than a nuisance settlement reflects the meritless nature of the suit rather than any wrongdoing.[5][6]

Contents

[edit] Litigation

[edit] Background

On February 27, 1992, Stella Liebeck, a 79-year-old woman from Albuquerque, New Mexico, ordered a 49¢ cup of coffee from the drive-thru of a local McDonald's restaurant. Liebeck was in the passenger's seat of her Ford Probe, and her grandson Chris parked the car so that Liebeck could add cream and sugar to her coffee. She placed the coffee cup between her knees and pulled the far side of the lid toward her to remove it. In the process, she spilled the entire cup of coffee on her lap.[7]

Liebeck was wearing cotton sweatpants; they absorbed the coffee and held it against her skin as she sat in the puddle of hot liquid for over 90 seconds, scalding her thighs, buttocks, and groin.[8] Liebeck was taken to the hospital, where it was determined that she had suffered third-degree burns on six percent of her skin and lesser burns over sixteen percent.[9] She remained in the hospital for eight days while she underwent skin grafting. Two years of treatment followed.

[edit] Attempts to settle

Liebeck sought to settle with McDonald's for US $20,000 to cover her medical costs, which were $11,000, but the company offered only $800. When McDonald's refused to raise its offer, Liebeck retained Texas attorney Reed Morgan. Morgan filed suit in a New Mexico District Court accusing McDonald's of “gross negligence” for selling coffee that was “unreasonably dangerous” and “defectively manufactured.” McDonald's refused Morgan's offer to settle for $90,000.[4]

Morgan offered to settle for $300,000, and a mediator suggested $225,000 just before trial, but McDonald's refused these final pre-trial attempts to settle.[4]

[edit] Evidence presented to the jury

During the case, Liebeck's attorneys discovered that McDonald's required franchises to serve coffee at 180–190 °F (82–88 °C). At that temperature, the coffee would cause a third-degree burn in two to seven seconds. Stella Liebeck's attorney argued that coffee should never be served hotter than 140 °F (60 °C), and that a number of other establishments served coffee at a substantially lower temperature than McDonald's.

Liebeck's lawyers presented the jury with evidence that 180 °F coffee like that McDonald’s served may produce third-degree burns (where skin grafting is necessary) in about 12 to 15 seconds (as a reference, the boiling point of water is 212 °F or 100 °C). Lowering the temperature to 160 °F (71 °C) would increase the time for the coffee to produce such a burn to 20 seconds. (A British court later rejected this argument as scientifically false.[10]) Liebeck's attorneys argued that these extra seconds could provide adequate time to remove the coffee from exposed skin, thereby preventing many burns. McDonald's reason for serving such hot coffee in its drive-through windows was that, because those who purchased the coffee typically wanted to drive a distance with the coffee, the high initial temperature would keep the coffee hot during the trip.[4]

Other documents obtained from McDonald's showed that from 1982 to 1992 the company had received more than 700 reports of people burned by McDonald's coffee to varying degrees of severity, and had settled claims arising from scalding injuries for more than $500,000.[4]

McDonald's quality control manager, Christopher Appleton, testified that this number of injuries was insufficient to cause the company to evaluate its practices. He argued that all foods hotter than 130 °F (54 °C) constituted a burn hazard, and that restaurants had more pressing dangers to warn about. The plaintiffs argued that Appleton conceded that McDonald's coffee would burn the mouth and throat if consumed when served.[11]

The trial lasted from August 8–17, 1994, and the twelve-person jury reached their verdict before Judge Robert H. Scott on August 18.[12]

[edit] Verdict and settlement

Applying the principles of comparative negligence, the jury found that McDonald's was 80% responsible for the incident and Liebeck was 20% at fault. Though there was a warning on the coffee cup, the jury decided that the warning was neither large enough nor sufficient. They awarded Liebeck US$200,000 in compensatory damages, which was then reduced by 20% to $160,000. In addition, they awarded her $2.7 million in punitive damages. The jurors apparently arrived at this figure from Morgan's suggestion to penalize McDonald's for one or two days worth of coffee revenues, which were about $1.35 million per day.[4]

The judge reduced punitive damages to $480,000, three times the compensatory amount, for a total of $640,000. The decision was appealed by both McDonald's and Liebeck in December 1994, but the parties settled out of court for an undisclosed amount less than $600,000.[13]

[edit] Other coffee burn cases

Similar lawsuits against McDonald's in the United Kingdom failed. In Bogle v. McDonald’s Restaurants Ltd. Field J rejected the claim that McDonald's could have avoided injury by serving not-so-hot coffee.

"If this submission be right, McDonald’s should not have served drinks at any temperature which would have caused a bad scalding injury. The evidence is that tea or coffee served at a temperature of 65 C will cause a deep thickness burn if it is in contact with the skin for just two seconds. Thus, if McDonald’s were going to avoid the risk of injury by a deep thickness burn they would have had to have served tea and coffee at between 55 C and 60 C. But tea ought to be brewed with boiling water if it is to give its best flavour and coffee ought to be brewed at between 85 C and 95 C. Further, people generally like to allow a hot drink to cool to the temperature they prefer. Accordingly, I have no doubt that tea and coffee served at between 55 C and 60 C would not have been acceptable to McDonald’s customers. Indeed, on the evidence, I find that the public want to be able to buy tea and coffee served hot, that is to say at a temperature of at least 65 C, even though they know (as I think they must be taken to do for the purposes of answering issues (1) and (2)) that there is a risk of a scalding injury if the drink is spilled."[10]

Though defenders of the Liebeck verdict argue that her coffee was unusually hotter than other coffee sold, other major vendors of coffee, including Starbucks, Dunkin' Donuts, Wendy's, and Burger King, produce coffee at a similar or higher temperature, and have been subjected to similar lawsuits over third-degree burns.[14]

Home and commercial coffee makers often reach comparable temperatures.[15] The National Coffee Association instructs that coffee be brewed “between 195-205 degrees Fahrenheit [91–96 °C] for optimal extraction” and consumed “immediately”. If not consumed immediately, the coffee is to be “maintained at 180-185 degrees Fahrenheit.” [16]

Although Liebeck's attorney, Reed Morgan, and the Association of Trial Lawyers of America defend the lawsuit by claiming that McDonald's reduced the temperature of their coffee after the suit, Morgan has since brought other lawsuits against McDonald's over hot-coffee burns;[17] and McDonald's policy today is to serve coffee between 80–90 °C (176–194 °F), [18] relying on more sternly-worded warnings to avoid future liability, though it continues to face lawsuits over hot coffee.[5][19][18] The Specialty Coffee Association supports improved packaging methods rather than lowering the temperature at which coffee is served [17]. The association has successfully aided the defense of subsequent coffee burn cases.[20]

Judge Frank Easterbrook wrote a unanimous 7th Circuit Court of Appeals opinion affirming dismissal of a similar lawsuit against coffeemaker manufacturer Bunn-O-Matic. The opinion noted that hot coffee (179 °F (82 °C) in this case) is not “unreasonably dangerous.”

The smell (and therefore the taste) of coffee depends heavily on the oils containing aromatic compounds that are dissolved out of the beans during the brewing process. Brewing temperature should be close to 200 °F [93 °C] to dissolve them effectively, but without causing the premature breakdown of these delicate molecules. Coffee smells and tastes best when these aromatic compounds evaporate from the surface of the coffee as it is being drunk. Compounds vital to flavor have boiling points in the range of 150–160 °F [66–71 °C], and the beverage therefore tastes best when it is this hot and the aromatics vaporize as it is being drunk. For coffee to be 150 °F when imbibed, it must be hotter in the pot. Pouring a liquid increases its surface area and cools it; more heat is lost by contact with the cooler container; if the consumer adds cream and sugar (plus a metal spoon to stir them) the liquid's temperature falls again. If the consumer carries the container out for later consumption, the beverage cools still further.[21]

[edit] In popular culture

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The article could be improved by integrating relevant items and removing inappropriate ones.
  • This case was spoofed in the TV show episode of Seinfeld - "The Maestro" - as well. Represented by Jackie Chiles, Cosmo Kramer sues the fictional Java World coffee chain and wins a lifetime of free coffee; he had burned himself by climbing over the legs of another patron in the movie theater while storing a cafe latte in his pants. When Kramer tells Jerry that he is suing Java World, he says, "It's coffee! It's supposed to be hot!" Kramer deftly replies, "...Not that hot!" The episode recalls the popular image of the "McDonald's coffee case" and conveys negative attitudes about the legal system. [2]
  • The True Stella Awards, created by Randy Cassingham, is an award given to frivolous lawsuits. The name is taken from Liebeck and the case features prominently in the award, as it inspired Cassingham to create the award. However, he argues that “much of the coverage” on Liebeck itself is “grossly unfair”.[22]
  • In the second episode of Harvey Birdman, Attorney at Law, entitled "Very Personal Injury," Apache Chief sues the Javalux coffee shop after a spilled cup of coffee burns his crotch, causing him to lose his ability to enlarge.
  • In late 2005, various billboards were put up around San Francisco, with "Spill hot coffee on your lap, win millions! Play Lawsuit Lotto" written on them.[citation needed]
  • In Sayonara Zetsubō Sensei, Nozomu Itoshiki expresses his despair over the frivolity of Western lawsuits by exclaiming "coffee that's too hot is a reparation of three million! A cat in the stove—ten million!"
  • In JPod (TV Series) episode "The Hero's Journey"; John Doe says: "Churlys hasn't given anything since their ill-fated 1992 drive-thru coffee giveaway." In the tv series, Churlys has replaced all references to McDonalds used in Douglas Coupland's novel JPod.

[edit] See also

[edit] References

  1. ^ Liebeck v. McDonald's Restaurants, P.T.S., Inc., No. D-202 CV-93-02419, 1995 WL 360309 (Bernalillo County, N.M. Dist. Ct. Aug. 18, 1994), docket entry from nmcourts.com
  2. ^ a b Mark B. Greenlee, “Kramer v. Java World: Images, Issues, and Idols in the Debate Over Tort Reform,” 26 Cap. U.L. Rev. 701
  3. ^ ABC News, “I'm Being Sued for What?”, 2 May 2007
  4. ^ a b c d e f Andrea Gerlin, Wall Street Journal, “A Matter of Degree: How a Jury Decided That a Coffee Spill Is Worth $2.9 Million,” Sept. 1, 1994, p. A1, available from Reed Morgan's website
  5. ^ a b Ted Frank, “Urban legends and Stella Liebeck and the McDonald's coffee case”, Overlawyered.com, 20 October 2005
  6. ^ Stephen Bainbridge (2004-08-01). Trial lawyer propaganda at kos (revised relocated blog entry). Retrieved on 2008-05-14. (Archived copies from the original URL.)
  7. ^ Michael McCann, William Haltom, and Anne Bloom, “LAW & SOCIETY SYMPOSIUM: Java Jive: Genealogy of a Juridical Icon,” 56 U. Miami L. Rev. 113 (October 2001), which describes the accident in detail
  8. ^ See Gerlin. See also Ralph Nader & Wesley J. Smith, No Contest: Corporate Lawyers and the Perversion of Justice in America (1996) ISBN 0375752587, 268
  9. ^ Nader & Smith, No Contest, 268
  10. ^ a b Bogle & Ors v McDonald’s Restaurants Ltd. [2002] EWHC 490, at 33
  11. ^ See Gerlin. See also trial and deposition transcripts reproduced in Nader & Smith, 270-272
  12. ^ Liebeck v. McDonald's Restaurants, docket entry from nmcourts.com:
    "08/18/1994 NCJ: JURY TRIAL 12 PERSON
    Filing Judgment entered solely against DF McDonald's and to PL for compensatory damages of $160,000.00 and punitive damages of $2,700,000.00 plus interest and costs
  13. ^ Daniel J. Shapiro, Punitive Damages, 43 La. B.J. 252, 254 n.1 (1995)
  14. ^ See multiple cases and newspaper stories cited in Ted Frank, "Latest hot coffee lawsuit data points", Overlawyered.com, 28 October 2006
  15. ^ For example, Bunn [1] mentions “the ideal brewing temperature of approximately 200°” (93 °C), and [2] mentions “water at 200° Fahrenheit (the ideal temperature)”. Cuisinart mentions for at least one of their coffeemakers [3] that “After brewing, the heater plate will keep the coffee at about 180°-185°F” (82–85 °C).
  16. ^ Specifications from ncausa.org
  17. ^ a b Matt Fleischer-Black (2004-06-04). One Lump or Two? Infamous coffee-burn case — which inspired both caricature and quiet reform — about to get a 10th-anniversary rerun.. The American Lawyer. ALM Media, Inc. Retrieved on 2008-05-13. “Ted Lingle, the executive director of the Specialty Coffee Association of America [said] ‘the answer is in more secure packaging.’”
  18. ^ a b Burger chain sued after boy's ordeal. Cambridge News. Cambridge Newspapers Ltd, Cambridge UK (2007-06-22). Retrieved on 2008-05-14. “Matthew Allen, 10, suffered second degree burns after he bumped into his mum's tray and the drink tipped on to his arm. ... He saw a plastic surgeon because it was feared he would need a skin graft. ... McDonald's says its black coffee should be served at 85C, plus or minus five degrees.”
  19. ^ Greenlee, 26 Cap. U.L. Rev. 701, 724
  20. ^ Id., which cites Lesly Pogerew v. Brothers Gourmet Coffees Inc., No. 96-CV-93848 (Denver Co., Dist. Ct., CO Nov. 19, 1997)
  21. ^ McMahon v. Bunn-O-Matic Corp., 150 F.3d 651 (7th Cir. 1997)
  22. ^ The Real Stella's Case, from the True Stella Awards

[edit] External links