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Local Lawsuit - Essay Example

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Running head: Business Lawsuit Business Lawsuit Author Name Author’s Institution Abstract On February 1992 in Albuquerque, New Mexico, Stella Liebeck bought McDonalds coffee from the drive through. While she was opening the lid to add creamer and sugar the coffee splashed on her lap causing third degree burn…
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Download file to see previous pages And secondly the cup in which the coffee was served did not indicate “caution”. Even though McDonalds knew about this situation as they had 700 claims filed on the same issue as Stella Liebeck they did not take any action. On August 18th 1994, jury reached its verdict, by applying the concept of comparative and punitive damages. Ms Liebeck was awarded 160.000$ as compensatory damages which included her medical expense and the loss of salary while she was away from her job, while 480,000$ were awarded as punitive damages by the trial court. McDonalds and Stella Liebeck later settled out of court for a confidential amount less than 600,000$. BUSINESS LAWSUITS McDonald’s is a cooperation that is in business since 1955. It has more than 33,000 restaurants worldwide, 1.7 million employees and is located in 119 countries. It has received several awards over the course of 56 years. Being the leading franchise they hold themselves and conduct of their business to high standards of fairness, honesty and integrity. But even though there top priority is customer satisfaction, sometimes unavoidable situations do arise, as happened in Liebeck v McDonald’s. This case is more commonly referred to as “McDonald’s coffee case”. ...
As Stella Liebeck was wearing cotton sweatpants the coffee got absorbed instantly. She remained drenched in the hot coffee for about 90 seconds before she was rushed to the hospital. Ms.Liebecks injuries were grave. She suffered third degree burns which affected her thighs and buttocks she remained hospitalized for eight days, where she underwent dreadful medical procedure to remove dead skin and skin grafting. It took total of two years for Ms Liebeck to recover completely from McDonalds coffee accident. The case was tried in The Second Judicial District Court in Bernalillo County, New Mexico. The presiding Judge was Honorable Roberts Hayes Scott. During the trial it was found out that the coffee served at McDonalds was 180-190 Fahrenheit which was capable of causing third degree burn in just fraction of seconds, Reed Morgan the prosecution lawyer argued before the court that the coffee should be served not hotter than 140 Fahrenheit in order to avoid accidents which is normally the temperature at which coffee is brewed at home. The total amount of Ms Liebeck medical expenses was 10,000$ for which she claimed 20,000$ as compensation. Big business and multinational firms can do many things to avoid unpleasant situations like these from arising. On trial it was found that McDonalds had 700 other claims by people burned by coffee over the past ten years, in which some of the cases were similar to Ms.Liebeck on third degree burn. This shows the company’s attitude towards their business, as they very well knew of the danger and hazard but didn’t bother to protect the customers against that risk. The quality assurance manager admitted that burns would occur, but testified ...Download file to see next pagesRead More
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