The McDonald's Case and Other Tort Reform Myths

Stella Liebeck: McDonald's Scalding Coffee Case

Facts and Their Sources:

Stella Liebeck was the passenger in her grandson's car, not the driver of the car

- ATLA
- Center for Justice and Democracy
- Wall Street Journal 9/1/04
- Georgia Trial Lawyers Association
- Lectric Law Library

Coffee spilled when she placed it between her legs and attempted to remove the plastic lid from the cup

- ATLA
- Center for Justice and Democracy
- Wall Street Journal 9/1/04
- Georgia Trial Lawyers Association
- Lectric Law Library

A vascular surgeon determined Stella had full thickness burns or third-degree burns over 6% of her body

- ATLA
- Wall Street Journal 9/1/04
- Georgia Trial Lawyers Association
- Lectric Law Library

She suffered burns on her inner thighs, perineum, buttocks, and genital and groin areas

- ATLA
- Ohio Academy of Trial Lawyers
- Georgia Trial Lawyers Association
- Lectric Law Library

Stella was hospitalized for 8 days

- ATLA
- Center for Justice and Democracy
- Georgia Trial Lawyers Association
- Lectric Law Library

While hospitalized, Stella underwent skin-grafting and debridement treatments (surgical removal of tissue)

- ATLA
- Center for Justice and Democracy
- Ohio Academy of Trial Lawyers
- Georgia Trial Lawyers Association
- Lectric Law Library

Stella sought to settle her claim for $20,000, but McDonald's refused

- ATLA
- Center for Justice and Democracy
- Georgia Trial Lawyers Association
- Lectric Law Library

In discovery, McDonald's produced documentation of over 700 claims by people burned by its coffee between 1982 and 1992—some involved similar third-degree burns

- ATLA
- Center for Justice and Democracy
- Ohio Academy of Trial Lawyers
- Wall Street Journal 9/1/04
- Georgia Trial Lawyers Association
- Lectric Law Library

Stella had never filed suit before and took an oath to that effect

- Wall Street Journal 9/1/04

McDonald's dismissed her requests for settlement for pain and medical bills with their offer to pay only $800

- Wall Street Journal 9/1/04

McDonald's had settled claims arising from scalding injuries for more than $500,000

- Wall Street Journal 9/1/04

McDonald's held its coffee b/w 180 and 190 degrees Fahrenheit to maintain optimum taste

- ATLA
- Center for Justice and Democracy
- Georgia Trial Lawyers Association
- Lectric Law Library

Coffee served at home is generally held b/w 135 to 140 degrees

- ATLA
- Georgia Trial Lawyers Association
- Lectric Law Library

McDonald's own quality assurance manager testified that a burn hazard exists w/ any food substance served at 140 degrees or above and that McDonald's coffee wasn't fit for consumption because it would burn the mouth and throat

- ATLA
- Center for Justice and Democracy
- Georgia Trial Lawyers Association
- Lectric Law Library

McDonald's quality assurance manager testified that while burns would occur, McDonald's had no intention of reducing the "holding temperature" of its coffee

- ATLA
- Ohio Academy of Trial Lawyers
- Wall Street Journal 9/1/04
- Georgia Trial Lawyers Association
- Lectric Law Library

Plaintiff's expert, thermodynamics scholar, testified that liquids at 180 degrees will cause full thickness burns in 2-7 seconds

- ATLA
- Center for Justice and Democracy
- Georgia Trial Lawyers Association

If her spill had occurred at 155 degrees she would've avoided a serious burn

- ATLA
- Georgia Trial Lawyers Association
- Lectric Law Library

McDonald's admitted its customers were unaware that they could suffer a third-degree burn from the coffee and that the statement on the side of the cup wasn't a warning but a reminder since the location of the writing wouldn't warn the customers of the hazard

- ATLA
- Center for Justice and Democracy
- Georgia Trial Lawyers Association
- Lectric Law Library

Christopher Appleton, McDonald's executive, testified McDonald's knew its coffee sometimes caused serious burns but hadn't consulted burn experts about it

- ATLA (citing Wall Street Journal 9/1/94)
- Ohio Academy of Trial Lawyers
- Wall Street Journal 9/1/04

Christopher Appleton, McDonald's executive, testified that McDonald's had decided not to warn customers about the possibility of severe burns even though customers wouldn't think of the possibility

- ATLA (citing Wall Street Journal 9/1/94)
- Wall Street Journal 9/1/04

Christopher Appleton, McDonald's executive, testified that McDonald's didn't intend to change its coffee policies or procedures because "there are more serious dangers in restaurants"

- ATLA (citing Wall Street Journal 9/1/94)

Jury awarded $200,000 in compensatory damages which was reduced to $160,00 because Liebeck was found to be 20% at fault

- ATLA
- Wall Street Journal 9/1/04
- Georgia Trial Lawyers Association
- Lectric Law Library

Jury awarded $2.7 million in punitives (or two days in coffee sales) which was reduced by the trial court to $480,000 or three times the compensatory damages even though the judge called McDonald's conduct reckless, callous, and willful

- ATLA
- Ohio Academy of Trial Lawyers
- Wall Street Journal 9/1/04
- Georgia Trial Lawyers Association
- Lectric Law Library

Subsequent to the remittitur the parties entered a post-verdict settlement

- ATLA
- Georgia Trial Lawyers Association
- Lectric Law Library
- Charles Bigbee

The case of Charles Bigbee was the "McDonald's Coffee Case" of the 1980s. Ronald Reagan described Bigbee's case in a 1986 speech as follows: "In California, a man was using a public telephone booth to place a call. An alleged drunk driver careened down the street, lost control of his car, and crashed into a phone booth. Now, it's no surprise that the injured man sued. But you might be startled to hear whom he sued: the telephone company and associated firms!" In fact, Bigbee's leg was severed after a car hit the phone booth in which he had been trapped. The door jammed after he saw the car coming and he tried to flee but could not. The accident left him unable to walk, severely depressed and unable to work. Because the phone company had placed the booth near a known hazardous intersection, and because the door was defective, keeping him trapped inside, he sued the phone company for compensation. Bigbee was brought to Congress to testify. He said, "I believe it would be very helpful if I could talk briefly about my case and show how it has been distorted not only by the President, but by the media as well. That is probably the best way to show that people who are injured due to the fault of others should be justly compensated for the damages they have to live with the rest of their lives." House Committee on Banking, Finance and Urban Affairs, July 23, 1986. Charles Bigbee died in 1994 at age 52. Nader, Smith, No Contest: Corporate Lawyers and the Perversion of Justice in America (1996). Center for Justice and Democracy, 2005.

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Attorney fees are computed from the gross recovery. Court costs, litigation expenses and medical bills are paid from client's share of the recovery.

However, if client does not recover, there is NO charge for attorney fees and NO charge for costs and expenses, except for client's medical bills.

Percentage fees in personal injury cases, other than medical negligence and product liability, are based upon a sliding scale of 1/3 of the gross recovery prior to filing suit, 40% thereafter and 45% in the event a notice of appeal is filed. Fees in medical negligence and product liability cases are, based on the same sliding scale, 40/45/50. Fees in Federal Tort Claims cases are limited to 20% of the gross recovery prior to filing suit and 25% thereafter.

Fees in qui tam cases are set by statute.

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The McDonald's Case and Other Tort Reform Myths

Stella Liebeck: McDonald's Scalding Coffee Case

Facts and Their Sources:

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