----- Original Message -----
From: "Robert Seeberger" <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>
Sent: Saturday, July 13, 2002 11:01 AM
Subject: Re: Fw: [Seebergers] Stella Award Candidates

>
> >
 > Now we have the Stella Awards, given to the individuals who win the
> most frivolous lawsuits ever.The Stella Awards are named in honor of
> 81-year-old Stella Liebeck, the woman who won $2.9 million for
> spilling a cup of McDonald's coffee on her crotch.

There is a bit of uban legand concerning this.  I have a lawyer friend who
was familiar with the particulars of this suit.  First of all, although its
not well known, the jury award is not the final word.  IIRC, the actual
award she got was in the range of $350,000.  This was high, considering her
medical bills were only in the $50,000-$60,000 range, but there were
reasons for this.

First of all, the damages were a lot more severe than you might think.  The
coffee was, basically, boiling hot.  There was a legal limit of 190 degrees
for the coffee, and it was well above that. She suffered third degree burns
in her genital area, and required plastic surgery.

Further, the McDonalds in question had been cited several times for this,
and they claimed to have corrected the problem.  Thus, a company which had
been warned numerous times had, through the result of willful violation of
state law, caused very significant damages to the woman.  So, a 6x or so
multiplier was the maximum, but not out of range.

The jury awarded 3.5 million for a couple of reasons. First, there were the
facts in the case.  They probably should have reasonably decided on the
$350,000.  But, there were complicating factors.  McDonalds was stupid
enough to hire arrogant lawyers who talked down to the jurors and mocked
the plaintiff.  They seemed to have the attitude that McDonalds was above
the law.  The jurors sent a message.

Indeed, virtually every news story about outrageous settlements neglects to
mention that the settlement is later reduced on appeal.  My friend told me
that there were legal limits on compensation. When a jury exceeds the law,
they are thanked and excused, and the award is reduced upon appeal.

That doesn't mean that there are not problems with the tort system in the
US.  But, it is not that simple.

Dan M.

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