Liebecks case was far from an isolated event. McDonalds had received more than 700 previous reports of injury from its coffee, including reports of third-degree burns, and had paid settlements in some cases.
Mrs. Liebeck offered to settle the case for $20,000 to cover her medical expenses and lost income. But McDonalds never offered more than $800, so the case went to trial. The jury found Mrs. Liebeck to be partially at fault for her injuries, reducing the compensation for her injuries accordingly. But the jurys punitive damages award made headlines upset by McDonalds unwillingness to correct a policy despite hundreds of people suffering injuries, they awarded Liebeck the equivalent of two days worth of revenue from coffee sales for the restaurant chain. That wasnt, however, the end of it. The original punitive damage award was ultimately reduced by more than 80 percent by the judge. And, to avoid what likely would have been years of appeals, Mrs. Liebeck and McDonalds later reached a confidential settlement.
