HTM450 Final Assignment: CEO Memo on Hot Coffee Lawsuit

This assignment presents a CEO memo analyzing the Liebeck v. McDonald's hot coffee case. The memo, prepared by a student, addresses the legal ramifications of the incident where a customer suffered severe burns from hot coffee. It outlines the facts of the case, including the jury's findings on the coffee's temperature and the company's liability. The memo also details the company's defense strategy and the reduction in punitive damages. Furthermore, it offers recommendations to the CEO, such as adjusting coffee temperatures and improving cup quality, to prevent similar incidents and mitigate future legal risks. The assignment highlights the importance of risk management and adherence to safety standards in the hospitality industry to avoid negligence claims and protect customers.

Running head: LAW ASSIGNMENT FINAL
LAW ASSIGNMENT FINAL
Name of the Student
Name of the University
Author Note

1LAW ASSIGNMENT FINAL
Memo
To: Chief Executive Officer
From: Name of the student
Re: Hot coffee case (Liebeck v. McDonald's Restaurants)
Date: (to be filled by the student)
As you know that our company was recently fined with an amount of $3 million, by
New Mexico Civil Jury for serving hot coffee beyond the permissible limit at a drive-in
located in Albuquerque. In the case, the customer Stella Liebeck bought a cup of coffee for
takeout and spilled it on her lap. It has been reported that she has suffered third-degree burns
on her inner thighs and other parts, which required skin grafts. The jury while delivering the
judgment held that, our company's operations manual elaborates that the franchisee will hold
the coffee at 180 to 190 degrees Fahrenheit, which is hottest enough to cause a third-degree
burn in seven seconds. The jury further held that the ‘Styrofoam cups’, which we use to serve
coffee is not made of satisfactory enough for the consumption of such hot coffee and that
would have cause burn to mouth and throat. Further, the jury took into account the prior 700
injuries complain by our different customers during the consumption of our coffee in the last
7 years.
We were successful in defending this claim by accepting the faults at our end and the Judge
reduced the number of punitive damages to near about 20 percent of the amount that has been
awarded by the jury. However, we are required to take adequate steps regarding the
temperature before serving the coffee, also need to change the quality of the coffee cups in
which we are serving coffee at present to avoid future injury cases of the customers from our
coffee.

2LAW ASSIGNMENT FINAL
Reference:
Liebeck v. McDonald's Restaurants (1994) P.T.S., Inc., No. D-202 CV-93-02419, 1995 WL
360309 (Bernalillo County, N.M. Dist. Ct. August 18, 1994)