McDonald's served coffee at 190°F — 700 burns later, a $640K verdict

On February 27, 1992, 79-year-old Stella Liebeck purchased a cup of coffee from a McDonald's drive-through in Albuquerque, NM. While parked, she placed the cup between her knees to remove the lid and spilled the entire cup on her lap. The coffee was served at 180–190°F (82–88°C) — a temperature that causes third-degree burns in about three seconds. Liebeck suffered third-degree burns on 6% of her body and lesser burns over 16%, primarily in her pelvic region, thighs, and groin. She was hospitalized eight days for skin grafting, lost 20 pounds, and required two years of treatment.

McDonald's had received over 700 reports of coffee burn injuries between 1982 and 1992 and had settled claims for more than $500,000. Despite this, the company required franchisees to hold coffee at 180–190°F, while experts testified that coffee at 140°F was standard at other establishments. Liebeck initially sought $20,000 to cover her medical expenses; McDonald's offered $800. She filed a lawsuit for gross negligence, arguing the coffee was unreasonably dangerous and defectively manufactured.

The jury found McDonald's 80% at fault and Liebeck 20% at fault. They awarded $200,000 in compensatory damages (reduced to $160,000) and $2.7 million in punitive damages — roughly two days of McDonald's coffee revenue. The judge reduced punitive damages to $480,000, for a total of $640,000. Both parties appealed but settled out of court for a confidential amount. The case became a flashpoint in the tort reform debate, often cited as the prime example of frivolous litigation, though legal commentators argue it was a legitimate and justified product liability case.