Do you remember the case of the elderly woman who spilled a cup of hot McDonald's coffee in her lap and sued the company? It made national headlines and was all over the media. Every late night comic put their own little spin on the case, especially after the woman was awarded 2.7 million dollars in punitive damages. Now why you might ask why did McDonald's have to pay so much? We'll they opted for a trial by jury, and once all the facts the media and comics left out were truly revealed, McDonald's was declared at fault. You can imagine this is a blow to the company, and other companies have taken note.
If you have a cell phone, credit card, or make purchases or payments online, than you may have agreed to an arbitration rather than a trial by jury. What's worse is you may not even know it. Big corporations are avoiding the hefty payouts and public trials by having people agree to or sign arbitration agreements, which excludes trial juries in the event of a dispute. Employers are also taking these steps during the hiring process. This means you don't get to sue them. You give up your rights when you sign that waver. Instead you get to go to a private arbitrator, that the company chooses and hires, to make the final decision regarding your dispute.
In the HBO Documentary, Hot Coffee, this process is dissected and revealed. The basis is the case mentioned above in which the media painted the elderly woman to be greedy, clumsy, and out for McDonald's money. The media did this rather than disclose that she suffered 3rd degree burns, skin graphs, and 8 days in the hospital. They neglect to tell you the coffee was so hot that she did not spill it because she was clumsy, the styrofoam cup begin to melt at the 187 degree temperature. it was more a laughing matter to them. Even people interviewed were shown the gruesome picture of the woman's burns. They could not believe that a cup of coffee could be that hot or could do so much damage. They changed their opinions of what the media portrayed.
The documentary also tells the story of a young woman sent over seas to work for her company. Her employer did not house her in an all female bunk as promised. Instead she was housed with men who sexually harassed her. She complained and was told to deal with it. Unfortunately, she was eventually drugged and gang raped by her male coworkers. She was told to continue working in these conditions or go back to the states jobless. She has suffered reconstructive surgery due to the severity of the rape. She has been fighting for 4 years to have her case heard in open court rather than by an arbitrator. She signed a waiver at the beginning of her employment.
Take a look at the trailer for the HBO Documentary "Hot Coffee."
Tell us your thoughts. Have you ever signed an arbitration agreement?
Do you know what it really means?
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