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Module 5-Discussion Question #2 You have likely heard of the Liebeck vs. McDonal

ID: 1133596 • Letter: M

Question

Module 5-Discussion Question #2 You have likely heard of the Liebeck vs. McDonalds case. Liebeck spilled hot McDonalds coffee in her lap and suffered third-degree burns. At trial, evidence showed that her cup of coffee was brewed at 190 degrees, and that, more typically, a restaurant's "hot coffee" is in the range of 140 to 160 degrees. A jury awarded Liebeck $160,000 in compensatory damages and $2.7 million in punitive damages. The judge reduced the punitive award to $480,000, or three times the compensatory award. What is your opinion on this case? Was the result reasonable? Why or why not?

Explanation / Answer

Yes. The outcome of the case was reasonable. The reasons are-

1. The jury was right in its assessment where it found Ms. Liebeck 20% responsible, thus getting 1,60,000$ compensatory damages, but they also awarded $2.7 mn as the punitive damages, which was quite a sum. Hence, the judge has to make it proportional.

2. The coffee was dangerously hot, causing 3rd degree burns, which is definitely more than the restaurant standards. Her recovery lasted for 2 years and the damages provided were still way more than she suffered. That's why the judge had to reduce the compensation.

3. The judge found her behaviour reckless and somewhat wilful, because one can't just make $2.7 mn simply by spilling over the coffee on herself.

4. If the punitive damages stayed $2.7 mn, it could have presented the wrong precedent before the people and people could have make easy money by doing the same, hence to save it from wrong precedent, the judge rightfully reduced the damages to $480000.

5. The overall idea of getting the compensation for this case was very true, as there were already complaints regarding the same against McDonald's earlier too and the company didn't care at all.

Hence, overall Ms. Liebeck was supposed to get the compensation for her loss, but the judge corrected the jury assessment in the end making it a ethical precedent.

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