They often teach this one in law school. You’ve definitely heard this one before — though you might not be aware of the whole story. In 1992, a case was brought against McDonald's after a woman suffered serious burns when she spilled a cup of coffee from the chain in her lap.
While the 79-year-old woman, Stella Liebeck, initially offered to settle for $20,000 to cover medical expenses and lost income, McDonald's was unwilling to pay more than $800, and so the suit went to trial. While the jury found Mrs. Liebeck to be partially to blame for her injuries, it also initially rewarded her nearly $3 million in punitive damages. The high-price tag was due to McDonald's unwillingness to change its policy of serving coffee at extremely hot temperatures that can cause third-degree burns, despite the fact that the company was aware of the risk and that there were more than 700 previous reports of injury from the coffee. The judge ultimately reduced the award by 80 percent and McDonald's and Liebeck eventually reached a confidential settlement.
McDonald’s changed their coffee temperature after that.