07.10 Punitive damage

07 Liability Law

The most spectacular liability trials take place in the USA. This is mainly because large companies can be sentenced not only to compensate for the actual damage, but also in a civil case in addition to a so-called punitive damage, a penalty payment. This payment is set by the courts at a level high enough to ensure that the liable companies effectively change their harmful behaviour. One of the best known and most illustrative cases is the «McDonald’s Coffee Case», even though it was finally settled by agreement. In this case, a woman in the USA suffered severe burns because of a (too) hot coffee. Although there were several such cases, McDonald’s neither brewed the coffee less hot nor did it warn against the hot coffee. Meanwhile, McDonald’s coffee cups contain at least one warning that cannot be overlooked (s. picture; details on Wikipedia: https://en.wikipedia.org/wiki/Liebeck_v._McDonald%27s_Restaurants).

07 Liability Law