Case Analysis

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Centennial College *

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331

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Law

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Jan 9, 2024

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12

Uploaded by PrivateEchidna7373

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To: Stella Liebeck From: Date: 2023.11.11 Re: McDonald’s hot coffee case McDonald’s providing hot coffee at excessive temperatures, led to Stella Liebeck suffering serious burn injuries. For success in a negligence action, Stella Liebeck needs to understand four elements of a negligent action: Duty of care. Duty of care means McDonald's had a responsibility to provide coffee at a reasonable temperature to every customer, not provide scalding hot coffee at 180 to 190 degrees that may harm others. Causation. Stella Liebeck purchased McDonald's hot coffee, she was injured with third-degree burns by the hot coffee, The plaintiff and defendant's relationship will have established causation. Breach of duty. Because the coffee was spilt this led to customers suffering severe burns that McDonald's did not consider prior incidents and industry standards. Before this case, there were over 700 customers who suffered injuries including burns when they bought hot coffee. Damage. Stella Liebeck not only suffered significant external damage but also faced sequelae after being burned. For example, suffering and pain of treatment, high cost of treatment, and spending time to see a psychologist. 1
Through legal analysis of Stella Liebeck against McDonald's in the negligence action, she had a reasonable chance of success. I will provide some evidence of the current and prior cases to the jury. For example, she had a medical certificate for her injury that she suffered third- degree burns from hot coffee. McDonald's paid settlements when it received some legal action for hot coffee. McDonald's provides hot coffee at 180 to 190 degrees Fahrenheit which is higher than other fast-food restaurants. McDonald's admitted that they did not provide warning to every customer when they buy hot coffee. McDonald's received upwards of 700 reports of injury due to hot coffee. Through that evidence, it shows McDonald's violated the safety product regulations and duty. Even if McDonald's had claimed in defense that hot coffee at a high temperature brings out better taste once the customer arrives at their destination, its products bring the risk of severe burn, and it does not provide warning labels on their drinks. In the Legal defenses, there are two defenses such as assumption of risk and contribution negligence. First, the assumption of risk is that McDonald’s used the situation that Stella knew the spilling hot coffee had risk to counter their testimony. Due to the products having extra high temperatures leading to customer-facing burn risk, the jury would not receive this weak defense. Second, contributory negligence. McDonald's would claim that Stella Liebeck did not put the hot coffee on the table, instead, she put it on her knees leading to the occurrence of the burn accident. Nobody will use the thermometer to check the temperature of hot coffee when they drink it, and people did not expect the temperature of hot coffee to be so high. Therefore, this defense does not have substantial weight. I will advise that McDonald's needs to implement risk or management steps to avoid an incident, such as the high-temperature product need to provide warning labels, regularly checking product temperature and supplies, increase in training programs, develop a post- 2
incident procedure outline, and reviewing the industry standards. First, McDonald's needs to provide extremely hot warning labels on every high-temperature product. Also, it should clearly caution every purchaser should they choose such a product. The customer will pay attention when the staff tells them that the product is very hot. Second, it should regularly check the machine of hot coffee in order to provide safe and reasonable coffee. If the coffee machine has a problem, the coffee's temperature will be very high. In addition, they should check product supplies. When a customer has a coffee cup with damage, the coffee would spill onto their skin; therefore, in order to reduce the risk of accidents, they should develop cups and lids that have a lower chance of spilling. Third, it should increase some training programs for hot beverages for staff whether new or existing. In order to prevent staff suffering from burn injuries when they are serving hot beverages to the customer. The training program will help every staff to understand how to handle emergency care for burns. Also, it makes for a good addition to post-incident procedures. For example, when a customer burns themselves from the hot coffee directly, they should be ready to provide basic medical assistance and/or first aid. The franchisee needs to report the injury incident to McDonald's head office. Finally, it should make the policy and product standards an industry requirement, at the same time, it needs to monitor every product’s safety standard. To sum up, McDonald’s did not take risk management steps, provide warning labels, and temperature control to avoid potential harm to every customer; therefore, Stella Liebeck would be successful in this case and receive compensatory damages and negligence. I consider the variability and uncertainty of potential defenses, but hot coffee has extremely high temperatures and the risk of severe burning. These reasons led the legal action to be, very likely, successful. 3
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References DuPlessis, D., O'Byrne, S., King, P., Adams, L., & Enman, S. (n.d.). Canadian Business and the Law . Retrieved from tophat: https://app.tophat.com/purchased_content/759141/item/245853::712e59fc-bdae-5754- b02f-21191002d9ed The McDonalds hot coffee case . (n.d.). Retrieved from Consumer Attorneys of California: https://www.caoc.org/?pg=facts 4
Overall Feedback You make some good points but I advised all my students your assignment should be 2000 words. Your analysis is too brief and I comment as follows: Where is the reference to the negligence test I referred to in the chat? (Figure 11.1) What about vicarious liability? The voluntary assumption defence would not succeed because there was evidence she was not aware of the possibility of third degree burns by excessively hot coffee. What type of damages are available? Why not have the server put the milk and sugar in the coffee? With respect to the allegations as against McDonalds, the corporation/employer would be vicariously liable for the actions of its employees as the alleged tort was committed in the “ordinary course or scope of employment” (Chapter 10 of e-text – and print text at p. 245) The elements of a negligence action as against McDonalds are listed in Figure 11.1 on page 261 of the print text in Chapter 11 under the heading “Establishing a Negligence Action” in the e- text: 5
Does McDonalds Ltd.(defendant) owe Stella Liebeck (plaintiff) a duty of care? If yes – continue- Did the defendant breach the standard of care? If yes – continue- Did the plaintiff sustain damage? If yes continue- Was the damage caused by the defendant’s breach of the standard of care? If yes – continue- Was the damage caused by the defendant too remote? If not -then the plaintiff has proven negligence Answers Yes – Stage 1 - Harm to the plaintiff is reasonably foreseeable in light of over the 700 reports of injury, serving the coffee at a dangerous temperature (causing 3rd degree burns), and previous settlements. There is sufficient proximity between the parties in the form of consumer/customer and restaurant (text pp. 261-263). Stage 2- As this is a personal injury matter and the defendant was serving an inherently dangerous product there would be no residual policy considerations that would negate the imposition of a duty of care. Yes – The standard of a reasonable restaurant would allow for the conclusion that the coffee “could cause serious burns in seconds.” The judge and jury may hear from experts on this issue to determine the standard and how it was breached. (text at p. 263-chapter 11). Yes –injury/damage occurred – The plaintiff suffered third degree burns and required 6
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skin grafts. Yes - more likely it was the hot temperature that caused the damages – though it would be arguable that the chain of events (hot coffee, placement of the hot coffee on her lap, followed by spillage) is what caused damage. However using the “but for” test on page 264 of the print text or chapter 11 (e-text) the injury would not have occurred but for the defendant’s actions. The case of Resurface Corp. v. Hanke (page 264 of the text or chapter 11) illustrated the issue of deciding whether the injury occurred because of the defendant or plaintiff’s conduct. In the Resurface case it was decided by the Supreme Court of Canada that the plaintiff’s own carelessness caused his injuries and not the product design. Note: the case at hand is to be decided by a jury and in the Chat I mentioned the unreliability of a jury’s decision making so it is possible that a jury could conclude that the plaintiff was the cause of her own injury because of the placement of the coffee on her lap. However- the other evidence indicating previous injuries and MacDonald’s behaviour would more than likely sway the jury to conclude that it was MacDonalds that was solely responsible or largely responsible for the damage. This issue can also be discussed when MacDonalds raises the contributory negligence defence. No - the damage caused by the defendant was not too remote. The Supreme Court of Canada has stated that remoteness of damage examines whether the actual harm suffered by the plaintiff was “too unrelated to the wrongful conduct to hold the defendant fairly liable “and in this way, not reasonably foreseeable (print text page 265, chapter 11). The satisfaction of this requirement is not difficult – suffering burns by the provision of dangerously hot coffee is reasonably foreseeable. There is no evidence that the plaintiff has a prior vulnerability so that the Thin Skull rule would not be applicable here. 7
As per page 268 of the text, chapter 10 – the law requires the plaintiff to prove each of the above elements and if it does -the plaintiff has won the negligence action. In this case it appears that the plaintiff has established or could establish that MacDonalds was negligent. Though a court may find the defendant to be negligent, the plaintiff is not automatically entitled to recover all her damages. McDonalds may raise defences against the plaintiff in order to place some of the responsibility for the loss on that party. There are two possible defences: Contributory Negligence: According to chapter 11 of your text -this refers to unreasonable conduct by the plaintiff that contributed—or partially caused—the injuries that were suffered. Contributory Negligence recognizes that, in many instances, both the defendant and the plaintiff may have been negligent. If the plaintiff is found to have been part author of her own misfortune, then, as noted in Chapter 10, provincial legislation will come into play. It provides that responsibility for the tortious event must be apportioned between or among the respective parties. Through this mechanism, the plaintiff’s damages award is then reduced in proportion to her own negligence. In this case the question is - was the plaintiff contributorily negligent for placing the cup containing a hot liquid between her knees and removing the lid to add cream and sugar? The cup tipped over and spilled the entire contents on her lap. In Chapter 11 of the text there is reference to the Kralik v Mount Seymour Resorts wherein the appeal court concluded that the plaintiff was 50% at fault for failing to take care of his own safety while using a ski lift. Arguably the same 8
scrutiny by a judge or jury could exist here and conclude that the plaintiff is partially at fault for her behaviour. In the actual case the jury found that McDonalds was 80 percent responsible for the incident and Liebeck was 20 percent at fault. Though there was a warning on the coffee cup, the jury decided that the warning was neither large enough nor sufficient. Voluntary Assumption of Risk According to chapter 11 of the text - when a judge or jury makes a finding of volenti non fit injuria or voluntary assumption of risk, it is concluding that the plaintiff consented to accept the risk inherent in the event that gave rise to the loss. Volenti non fit injuria is therefore a complete defence to the lawsuit, and the plaintiff will be awarded nothing by a judge even though the defendant had been negligent. To succeed on this defence, the defendant must show that the plaintiff—knowing of the virtually certain risk of harm—released his right to sue for injuries incurred as a result of any negligence on the defendant’s part. In short, both parties must understand that the defendant has assumed no legal responsibility to take care of the plaintiff and that the plaintiff does not expect him or her to. Since this test is not easy to meet, volenti non fit injuria is a very rare defence. In this case in order for the defence to be successful the defendant would have to prove the plaintiff knew of the possibility of severe (third degree burns) and she waived any rights against the defendant – there was no evidence of this. Quite the opposite- as the material states that McDonalds admitted that its customers were unaware of the risk of serious burns. Though it 9
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would be arguable that the placing of the cup between her knees was some indication she may have assumed the risk – the other evidence the jury heard about the defendant’s attitude and policy would not make the jury sympathetic to this argument. Conclusion It appears that the evidence satisfies the requirement that Mcdonalds has committed the tort of negligence. However it is also likely they are not 100% at fault based on the contributory negligence committed by Stella Liebecki, Despite a warning on the cup, she placed the cup of hot liquid between her knees. In the actual case she was deemed 20% responsible. Damages According to chapter 10 -the primary goal of a tort remedy is to compensate the victim for loss caused by the defendant. Generally, this is a monetary judgment. When a person is injured by the tort of another, his damages are categorized as being either pecuniary (i.e., monetary) or non- pecuniary. Non-pecuniary damages—sometimes called general damages—are damages that are awarded to compensate the plaintiff for: pain and suffering. loss of enjoyment of life. loss of life expectancy. 10
Because McDonalds negligence caused the customer to suffer from third degree burns -she has undoubtedly suffered an amount of general damages. These damages are non-pecuniary in the sense that they are not out-of-pocket, monetary losses, but they are nonetheless both real and devastating. The quality of her life has been diminished. A judge or jury will award damages based on these facts, as well as on expert testimony as to how badly she has been injured. The more serious and permanent the injury is, the higher the general damages will be. Courts have developed precedents to assist in this process, and the Supreme Court of Canada has set a clear upper limit on what can be awarded for general damages. Punitive damages—also known as exemplary damages—are an exception to the general rule that damages are intended only to compensate the plaintiff. Their main goal is to punish the defendant for “outrageous, antisocial, or illegal behaviour” or, less commonly, to prevent the defendant “from benefitting from the wrong.” The Supreme Court of Canada has noted, punitive damages “are in the nature of a fine which is meant to act as a deterrent to the defendant and to others from acting in this manner.” If the judge or jury feels that punitive damages are required this would be an amount above and beyond general damages. In the actual case almost $3 million was awarded in punitive damages at trial but on appeal these were reduced by 80%. Risk Management If a risk management plan exists for McDonalds it should be revisited – in the Chat I mentioned that I was seeking practical tips from you. Practically speaking they may want to consider: 11
attempting to use a more secure lid; place the sugar and/or coffee in in the coffee before giving the cup to the customer; enhance any existing warning on the cup about the need for careful handling; update their policy on the temperature of the served coffee Note: I would like to mention that the entire assignment is marked out of 30 – I use to break down the mark per issue but it seemed that the overall assignment mark was too low based on that approach. What I have done is provide an overall mark with some comments as to the weaknesses in your approach (or sometimes strengths) followed by what I consider to be the model response. This means there will be some points in the model response that you will have covered but I prefer to provide direct comments on what was lacking. Please take the time to read the model response so you can appreciate the overall grade assigned. It may be possible that I did not mention all the oversights in my comments but they will be apparent with the comments I provide you. I do want to assure you that I do appreciate your argument even if I disagree with your conclusion. Also keep in mind that this course material and evaluation is not like math whereby you are awarded a full mark if you advise me that the answer to “What is 1 + 1” is 2. In this course you are evaluated on the reasons and explanation as to why 1 plus 1 is 2. Due to this – there is a lot of discretion available to me in terms of marking. Thanks for your understanding. 12
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