Case Studies Research Essay

1845 Words Jun 6th, 2016 8 Pages
Week 7: Case Studies Research
Michael Abernathy
11/24/15 AMBA 610

The Facts
The circumstances in the case of Stella Lieback v McDonald’s Restaurant consist of a hot coffee burn incident. Stella Lieback a 79- year old woman from Albuquerque, New Mexico visited a drive-through McDonalds. The incident took place on February 27, 1992 as a passenger in her grandsons ’89 ford probe, a vehicle with no cup holders.
The case of Roy L. Pearson V Chung better known as the “pants lawsuit” which was a civil case filed in ‘2005. Pearson sued a D.C. dry cleaning establishment by the name of Custom Cleaners, for over $67 million for the loss of a pair of pants. The facts in the case state that the plaintiff left a pair of gray
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Defense Counsel Journal. Oct 2014, Vol.81 Issue 4, pg. 346-357.12p).This results in the law focusing on the distributor being held responsible for the “coffee” product causing and injury to the plaintiff Stella Lie back. The argument raised by Lie back’s attorney is temperature of 180-190 F (82-88 C) of McDonalds Restaurant coffee being defective. Based on established franchise policy this is the required temperature which coffee is held to. In the case of Roy L. Pearson v Custom Cleaners an argument can be made in the case of “fraud” on the part of the Chugs for projected false advertisement of “Same Day Service” and “Satisfaction Guaranteed”.
The Verdict
The decisions made by the judge and jury in the case of Lie back v McDonald’s district court Judge Robert H. Scott reduced punitive damages to $480,000. The jury originally had decided to award Stella Lie back $2.7 million in punitive damages. The arrival in compensation award amount was calculated from a penalty of McDonald’s one or two days’ worth of coffee revenues, which estimate about $1.35 million per day. This generated an appeal by both parties in which an out of court settlement was reached

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