Jim Whitney Economics 495

Sample civil case:
Liebeck vs. McDonald's (1994)

Facts of the case: Stella Liebeck was a 79-year old retiree. On the morning of February 27, 1992, Liebeck's grandson drove her to a McDonald's in Albuquerque, N.M., where she ordered a Mcbreakfast at the drive-through window. Her grandson parked the car so she could add some cream and sugar to her coffee. When Liebeck tried to remove the top of the coffee cup, she spilled the coffee on her lap and suffered second-and third-degree burns across her buttocks, thighs and labia. Liebeck spent seven days in an Albuquerque hospital and about three weeks recuperating at home with her daughter, then was hospitalized again for skin grafts. During her recovery, Liebeck lost 20 pounds -- down to 83 pounds -- and was practically immobilized. Liebeck wrote to McDonald's requesting reimbursement for her out-of-pocket expenses -- about $ 2,000 -- plus the lost wages of her daughter who stayed home with her. McDonald's offered $800.

The complaint: Liebeck hired an attorney, Reed Morgan, to sue for damages. Morgan filed a complaint charging McDonald's with "gross negligence" for selling coffee that was "unreasonably dangerous" and "defectively manufactured." He asked for at least $100,000 in compensatory damages -- including payment for Liebeck's pain and suffering -- and triple punitive damages. McDonald's moved for summary dismissal, defending the heat of its coffee and claiming that Liebeck spilled the coffee and therefore was the "proximate cause" of the injury. The motion for summary dismissal was denied.

Evidence and testimony:
    Submitted document, McDonald's operations and training manual: Stated that its coffee must be brewed at 195 to 205 degrees and held at 180 to 190 degrees for optimal taste.
    Submitted company documents: Showed that in the past decade McDonald's had received at least 700 reports of coffee burns ranging from mild to third degree, and had settled claims arising from scalding injuries for more than $500,000.
    Testimony of plaintiff Stella Liebeck: "I took the cup and tried to get the top off." She looked for a place to set it down, but the dashboard was slanted and there was no cup-holder in the Ford Probe. "Both hands were busy. I couldn't hold it so I put it between my knees and tried to get the top off that way." Liebeck tugged, and scalding coffee gushed into her lap. She screamed. Her grandson leaped from the car to help her. She pulled at her sweat suit, squirming in a bucket seat as the coffee seared her skin. What she remembered most was the pain.
    Testimony of plaintiff witness Danny Jarrett, a law student hired to take coffee temperatures at other local restaurants for comparison: He sampled cups all over the city and found that none came closer than about 20 degrees to the temperature at which McDonald's coffee is poured, about 180 degrees.
    Testimony of plaintiff witness Dr. Charles Baxter, a renowned burn expert from Southwestern Medical School in Dallas: Described graphic photos in evidence of Liebeck's charred skin and testified that coffee at 170 degrees would cause second-degree burns within 3.5 seconds of hitting the skin. It takes less than three seconds to produce a third degree burn at 190 degrees, about 12 to 15 seconds at 180 degrees and about 20 seconds at 160 degrees.
    Testimony of defense witness Christopher Appleton, a quality-assurance supervisor at McDonald's headquarters: McDonald's knew its coffee sometimes caused serious burns but hadn't consulted burn experts about it. The company had received 700 burn complaints over 10 years. It had not lowered the heat under its coffee during that time. McDonald's coffee cups warn drinkers that the contents are hot, but the company had decided not to warn customers about the possibility of severe burns. McDonald's didn't intend to change any of its coffee policies or procedures. "There are more serious dangers in restaurants."
    Testimony of defense witness Robert Knaff, a safety consultant: asserted that 700 complaints -- which amounted to about one in 24 million cups -- was "basically trivially different from zero."
    Testimony of defense witness, a scientist (name not available): Any coffee hotter than 130 degrees could produce third-degree burns, so it doesn't matter whether McDonald's coffee was hotter.
    Arguments by defense lawyer: The coffee was hot; that's how customers want it. Liebeck had only herself to blame. She was "unwise" to put the cup between her knees. Liebeck may have contributed to her injuries by not removing her clothing immediately. "Mrs. Liebeck's age may have caused her injuries to have been worse than they might have been to a younger individual," since older skin is thinner and more vulnerable to injury. "The real question ... is how far you want our society to go to restrict what most of us enjoy and accept."