What Hot Coffee Can Teach Us About the Myth of Frivolous Lawsuits

Liebeck v. McDonald’s Restaurants is frequently cited as a textbook example of a frivolous lawsuit. The case was even the subject of a major documentary, appropriately called Hot Coffee. Although this case is compared with frivolous lawsuits, that is only because the public heard McDonald’s side of the story. The truth of the matter is that frivolous lawsuits are usually thrown out of court by judges, long before they make it to a jury trial.In 1992, 79-year-old Stella Liebeck was burned by an excessively hot cup of McDonald’s coffee. At the time of the incident, Liebeck was a passenger in a vehicle parked in the McDonald’s parking lot. While removing the lid on her coffee to add cream and sugar, Liebeck spilled the beverage over her thighs. This was not ‘ordinary’ hot coffee: it was 190 degrees Fahrenheit (water boils at 212 degrees Fahrenheit). Liebeck suffered severe third-degree burns on her thighs and was hospitalized for eight days. The burns caused by the coffee were so severe that she needed skin grafts!After the incident, Liebeck offered to settle with McDonald’s for $90,000. Instead of accepting the settlement, McDonald’s offered Liebeck $800 – nowhere near enough to cover the cost of her injuries. Additional attempts to settle with McDonald’s failed, and the case went to trial.

Why The McDonald’s Coffee Case Was Not a Frivolous Lawsuit

Liebeck was not the first person to be injured by McDonald’s hot coffee. McDonald’s had received 700 reports of customers being burned. It was also not the first time McDonald’s settled with customers who had received burn injuries (some of which were third-degree burns). Evidence during the trial discovered McDonald’s had previously spent $500,000 settling with customers burned by its coffee.Additional evidence showed that McDonald’s had kept its coffee dangerously hot (180 to 190 degrees) despite knowing of prior cases involving injuries. There were even prior reports that children and infants had been badly burned by the coffee. McDonald’s had a reason for keeping the coffee so hot: the hotter the coffee, the longer it took to drink, which meant fewer refills, which meant McDonald’s saved money--at the expense of its customers’ safety.Liebeck v. McDonald’s Restaurants was not a frivolous lawsuit as reported by the mainstream media. A 79-year-old grandmother, plus many others, were severely injured by a product that McDonald’s knew was dangerous. Liebeck was awarded $2.9 million in damages by a jury, but this amount was later reduced by the court to $640,000.After the trial concluded, the judge ordered both parties to participate in a post-verdict settlement conference. This resulted in a settlement between Liebeck and McDonald’s that was less than $600,000 (the amount still remains undisclosed today). While McDonald’s was free to discuss the case openly with the media, Liebeck was forbidden from talking about the settlement. This meant McDonald’s could spin the story any way it wished.Liebeck v. McDonald’s Restaurants suggests that some companies put profits before customers. In 1992, McDonald’s was worth billions of dollars, yet it only offered Liebeck $800 despite the severity of her injuries.Why is it important to reject the myth of frivolous lawsuits? While it is important for people injured by dangerous products to receive money needed to pay for medical treatments and lost income, it is also essential to hold negligent or reckless companies accountable for their actions. Filing lawsuits can sometimes prevent a business or other companies within the same industry from harming additional people.

Why the Government Is Investigating the Tesla Autopilot Feature

Two recent accidents involving the Tesla Autopilot feature have federal regulators at the National Highway Traffic Safety Administration (NHTSA) worried. NHTSA is the federal agency responsible for regulating safety standards within the auto industry.Earlier this year, a Tesla Model S was involved in a fatal car accident. A large semi-truck took a left turn in front of the Tesla Model S. Instead of braking, the Tesla Model S drove underneath the semi-truck’s trailer, sheering the small passenger vehicle in half.An internal investigation carried out by Tesla confirmed Autopilot was engaged at the time of the accident. Autopilot is a feature on some Tesla vehicles that that uses cameras, GPS and software to automatically steer and brake for drivers. Tesla recently claimed on its blog that the Autopilot feature was unable to differentiate the white side of the semi-truck against a brightly lit sky.Another accident involving Autopilot has caught the attention of NHTSA. In the second crash, a Tesla Model X collided with a post along the side of a highway. An accident report suggests Autopilot warned the driver to place his hands on the steering wheel. According to Tesla, these warnings went unheeded. The driver has argued that there was no warning he was in danger. He also claims that he speaks Mandarin, and that Autopilot issues warnings in English.NHTSA’s investigation into Autopilot is significant for several reasons. This is the first time NHTSA has investigated a fatal accident involving self-driving technology. In addition, a letter sent by NHTSA to Tesla indicates its investigation is focusing heavily on automatic emergency braking systems. Last year, NHTSA issued a press release detailing how ten major automakers plan to include automatic emergency braking systems on their vehicles within the next few years. Automatic emergency braking may have failed during the fatal Tesla Model S crash, and the safety of this technology is now being questioned. If this technology is not currently installed on your vehicle, it may be within the next several years.

How to Stay Informed on Auto Recall and Safety News

Even if you don’t own a Tesla vehicle, it is still extremely important to stay well-informed on auto recall and safety news. In some cases, NHTSA investigations lead to recalls. Automakers must inform consumers of recalls. However, there are dozens of reasons you might miss recall announcements (such as moving or listing the wrong address).NHTSA operates www.safercar.gov, which lists recent information on recalls. To check for recalls, type your vehicle identification number into the website’s search engine.The Texas personal injury attorneys at Mike Love & Associates, LLC will help people who have suffered injuries caused by defective auto parts.

Want to Avoid Dangerous Consumer Products? Here’s How to Get Information On Recalls

Several incidences of dangerous consumer products causing deaths or injuries to unsuspecting people can make a good case for staying informed on product recalls.Last week, IKEA issued a recall for its MALM model of dressers due to several children being killed by tip-over accidents. Tip-over accidents occur when children climb the dressers or pull out the drawers, causing an uneven distribution of weight. Dozens of children have been injured or killed by tip-over accidents since 1989. IKEA’s most recent recall involves 39 million dressers, many of which were sold here in the United States.However, IKEA’s dressers are not the only dangerous consumer product to recently grab headlines. Remember how hoverboards were all the rage during the 2015 holiday season? Many consumers found these poorly designed Segway-looking toys could explode with no warning due to faulty batteries. A family in Louisiana even lost their home after one exploded and caught fire. The CPSC asked manufacturers of hoverboards to issue recalls after numerous reports of explosions.We have written blogs on defective or unsafe car seats that pose serious dangers to children during accidents. In other words, there are many products that are recalled every year. In some cases, the Consumer Product Safety Commission (CPSC) recalls several products per day!Fortunately, there are ways you can receive recent information on product recalls to protect yourself and your family. Receiving information on recalls can be done online or with your smartphone.

Online Resources for Information on Product Recalls

The CPSC was created by Congress in 1972 to protect the public from products capable of causing death or injuries to consumers. To carry out its goals, the CPSC conducts research on dangerous products, obtains recalls for dangerous products and educates consumers on product safety. For the purposes of our blog today, we are going to focus on the latter.The CPSC operates a website with detailed information on recalls. If you are visiting this website, you can search for products by name or manufacturer. By typing IKEA into the website’s search bar, you can find a listing of every product the company has ever recalled. Let’s use IKEA’s MALM dressers as an example. After clicking IKEA’s MALM dressers in the search results, detailed information on the current recall is provided at the top of the page.Depending on your tolerance for ads, there are also smartphone apps that provide recall information. Keep in mind, the information may not be as concise or recent as what is offered by the CPSC. At the moment, the CPSC does not have its own app. Information from third parties on product safety should always be taken with skepticism and compared with information provided by government agencies.The Texas personal injury attorneys at Mike Love & Associates, LLC can will fight to defend people who have been injured by negligent companies.

Injured in an Accident? Beware of Texas Hospital and Emergency Services Liens

Hospital and emergency services liens, covered under Texas Property Code Ch. 55, allow hospitals and emergency services to seek reimbursement for providing care to people injured in accidents by the negligence of other parties. What are these liens?The Texas Legislature passed the Hospital Lien Statute in 1933 to allow injured parties to receive treatment, but also to ensure that hospitals are reimbursed for the cost of rendering care. In 2003, the Hospital Lien Statute was amended to include emergency services, such as ambulances. How does this statute work?For example, if an injured person were hospitalized for two days following a car accident due to a distracted driver, the hospital and emergency service providers could attach a lien to any future judgments or settlements to recover costs of care. In other words, the hospital or emergency service provider must be paid in full from any settlement proceeds before any of settlement funds can be applied to the victim’s other damages, such as lost wages or ongoing medical treatment.Even if you have health insurance, many hospitals will refuse to bill your health insurance after an accident and instead file a lien for the full list price of the services, rather than the lesser amount your health insurance would have allowed for the same services.  The hospitals do this to increase their profits; however, it leaves fewer settlement funds to pay for your other damages.

When are Hospital and Emergency Service Liens Not Valid?

There are some circumstances where these liens are not valid.Hospital and emergency services liens have time limits in Texas: Hospital and emergency services liens are only valid if an injured party is treated within 72 hours following an accident, and only for the first 100 days after an accident. This means that any costs incurred after the 100-day mark or after 72 hours following the accident would not be subject to a hospital and emergency services lien.Hospital and emergency services liens must be filed correctly: To seek reimbursement, hospitals or emergency service providers must file notices of liens in the county where the services were rendered. Hospital and emergency service liens should contain the correct names and addresses of injured parties, the name of the responsible party (or their insurance carrier), and the date that services were provided. If hospitals or emergency service providers fail to name the correct parties or date of service, the liens may not be valid.A skilled attorney can use itemized billing or other methods to determine if patients have been overcharged and can negotiate the cost of service with hospitals. Taking such action can reduce the costs of liens placed on settlements or judgments.The personal injury attorneys at Mike Love & Associates, LLC have a proven record of helping individuals and families hurt by the negligence of others.

What Are the Differences Between PIP and Med Pay Coverage On Your Auto Policy?

If you or loved ones are involved in a car accident, lacking certain types of coverage means you may not be fairly compensated for injuries. Understanding the differences between certain types of coverage is a matter of significant importance.If your Texas auto insurance policy does not have personal injury protection (PIP) coverage or medical payments coverage (also called Med Pay coverage), you should finish reading this blog. People who lack PIP or Med Pay coverage may not have the resources needed to pay for medical bills, rehabilitation, lost wages and other costs associated with serious injuries.It is also extremely important to know the differences between PIP and Med Pay coverage because Texas law does not allow both on an individual policy! Keep in mind, we are only discussing Texas insurance policies. If you are from another state, insurance requirements and laws will be different.PIP coverage:

• Insurance companies are required under Texas law to automatically provide $2,500 PIP coverage, but because policyholders can opt to reject it, many people do not have the coverage.

• PIP coverage pays for 100 percent of medical expenses and rehabilitation therapies. This can include physical therapy, prosthetics and other necessary medical needs after surviving an auto accident.

• PIP coverage pays 80 percent of lost income.

• PIP coverage is not subject to subrogation in Texas. This is an important point because subrogation is the process insurance companies use to pursue reimbursement. People with PIP coverage on their policies will not be required to return PIP payments paid out after an accident. For example, if you settled with an at-fault driver’s insurance company for $8,000, but had $3,000 in PIP coverage, you would not have to return the $3,000 after settling because PIP is not subject to subrogation (meaning you keep $11,000 total instead of $8,000)! It helps to think of ‘subrogation’ as a fancy word for reimbursement.

Med Pay coverage:

• Unlike normal health insurance policies, Med Pay coverage has no deductible. For those of you unfamiliar with one of the unpopular aspects of health insurance policies, a deductible is the amount of money that you must pay before insurance covers a claim.

• Like PIP coverage, Med Pay coverage will cover the cost of hospital bills regardless of who is at fault, but it does not pay lost income. If you were to need a month off work to recover from your injuries, Med Pay coverage would cover your medical bills but not your month of lost income.

• Med Pay coverage is subject to subrogation and insurance companies can recover costs from claims. So if we use our example again of an $8,000 settlement, $3,000 in Med Pay coverage would mean you keep $8,000 and not $11,000. This is because you would have to reimburse the Med Pay payments out of your liability settlement.

• Unlike PIP, insurance companies are not required to offer Med Pay coverage.

Should I Get PIP or Med Pay Coverage for My Texas Auto Insurance Policy?

The differences between PIP and Med Pay coverage should ring alarm bells for Texas auto insurance policyholders. Let’s say for example you were to suffer multiple broken bones from a car accident. If you lacked PIP coverage or had the minimum amount required, you would be in trouble. Medical bills and lost income from missing work could create a financial catastrophe for you and your family. Even with minor injuries, not having PIP coverage could spell disaster. You would receive less money for your injuries with Med Pay coverage because it is subject to subrogation.Several weeks ago, we wrote a blog discussing how you could discover what was on your insurance policy. Details on whether you have Med Pay, PIP or none-of-the-above would be listed on your policy’s declarations page.The Texas personal injury attorneys at Mike Love & Associates, LLC would be happy to review your insurance policy at no cost. We can tell you what types of coverage you have and what types of coverage you are lacking.