How hot, though? How much harm? Would you accept a cup of coffee that was 500 degrees (ignore the state of matter part)? 1000 degrees? There's a line somewhere, isn't there? Great, so now that we've all agreed it's a line-drawing exercise, let's see where that line is:
- McDonalds required that its coffee be kept at 180-190 degrees (freedom units, obv.). But other competitors, from fast food joints to sit down restaurants, served it at least 20 degrees cooler (and often more).
- Why does that matter? Because at 190 degrees it takes 3 seconds for a third-degree burn (requiring skin grafting). 160 degree coffee takes about 20 seconds.
So we have all the information we need here. There's a
vast difference between 160 degrees and 190 degrees, each of which are "hot." And "you should expect" that the hot coffee you are being served is approximately the same temperature as the hot coffee you have been served by other establishments, right?* Your prior experiences, after all, are why "you should expect" anything at all. So a cup of coffee that is unreasonably (can't drink it at 190 degrees) and unexpectedly (McDonalds was the outlier) "hot" is not the same as a cup of coffee that is "hot."
* Most people prefer around 140 degrees, which is still hot but much, much less dangerous than the 190 degree coffee at issue in the McDonalds case.
Some other interesting stuff that most don't know:
- McDonalds proffered reason for 190 degree coffee was that drivers typically waited to drink their coffee until they arrived, meaning that the coffee would cool. But McDonald's own research stated that many customers consumed coffee immediately.
- From 1982 until 1992, McDonalds had received 700 reports of people being burned by their coffee, and those were settled for over $500,000 in the aggregate.
- The plaintiff suffered third-degree burns on 6% of her body (skin grafts!), and second-degree burns on another 16%. She was permanently disfigured and partially disabled for two years.
- The plaintiff initially sought $20,000, which would have covered her past ($10,500) and future ($2,500) medical expenses, plus lost wages for her daughter (who missed work to care for her). McDonalds offered $800. The plaintiff then hired an attorney.
- The attorney offered to settle for $90k. A mediator later suggested $225k just before trial. McDonalds refused both offers.
- The jury awarded $200k in compensatory damages (reduced to $160k) and $2.7m in punitive damages (based on 2 days of McDonalds coffee revenue, which is not tethered to compensatory damages as required by due process, and later reduced to $480k, 4x compensatory).
- The parties ultimately settled for an undisclosed amount less than $600k in exchange for dropping appeals.
So what we have is a perfect storm of (i) ridiculously and needlessly hot coffee, (ii) a corporate failure to identify its own liabilities and evaluate its own information, (iii) bad litigation strategy by McDonalds, and (iv) a good lesson in how punitive damages work. It's sad that the "lesson" that most people derived from this case was "litigation bad!"