Stella Liebeck's Coffee Case Study

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In 1992, Stella Liebeck a woman of 79 years resident of Santa Fe in the state of New Mexico had bought coffee at a McDonald Mc Drive. Wanting to add milk and sugar to her coffee, she tried to remove the coffee cup lid, without success since it got stuck. She then began to make handling with both hands and then tucked the cup between her knees. So she pulled the cover that was cut brutally and threw hot coffee on her lap, seat, thighs and crotch. Burned to the second and third degrees, she was hospitalized and underwent multiple skin grafts. She remained immobilized for three weeks and assisted daily by her daughter who had to take unpaid leave.

Liebeck initially approached McDonald’s with a demand of $20,000 to cover her medical bills, future …show more content…

The jury also found that Plaintiff was twenty percent at fault. What were the damages awarded? After deliberating four hours, the six man, six woman jury initially awarded $200,000 in compensatory damages, which was reduced by the judge by $40,000 due to the finding of comparative fault. The jury also awarded $2.7 million in punitive damages. What became of the verdict? McDonald’s filed post-trial motions. In late August or early September 1994, Judge Scott appointed retired New Mexico Supreme Court Justice William F. Riordan to mediate the dispute and ordered the parties to “make a good faith effort to resolve and completely settle all pending issues.” (“Conference Ordered on Spilled Coffee,” Associated Press, Tulsa World, September 2, 1994, available at 1994 WLNR 5089128). On September 16, 1994, Judge Scott denied McDonald’s motion for new trial and motion for judgment notwithstanding the verdict, noting that “the compensatory award of $160,000 shall not be disturbed.” However, in that same order, the court noted as follows: “The award of punitive damages of 2.7 million dollars was excessive, as a matter of law. Accordingly, a new trial shall be granted on all issues unless Plaintiff accepts — by written notice to the Court within 25 days of the date of entry of this Order – a remittitur of the punitive

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