LOS ANGELES: Starbucks was facing another lawsuit over a spilled hot drink Wednesday, just weeks after a court ordered the coffee giant to pay $50 million to a man who was injured by a cup of tea.
A lawsuit lodged in California claims Sabrina Michelle Hermes was seriously hurt when hot liquid tipped into her lap at a drive-through in Norwalk, near Los Angeles, two years ago.
The suit, filed at the city’s superior court, claims one of the cups in her order was not properly secured when it was handed to her, and the drink sloshed out onto her legs, a hip, a knee and her feet, causing severe injuries.
Starbucks “owed a duty to exercise reasonable care with respect to the preparation, handling and service of hot beverages so as to prevent them from spilling onto and injuring customers such as plaintiff,” the suit says.
The negligence suit seeks unspecified general and special damages, including reimbursement for past and future medical costs and lost earnings.
A spokesperson for Starbucks told AFP on Wednesday the company would be contesting the claim.
“We have always been committed to the highest safety standards in our stores, including the handling of hot drinks,” the spokesperson said.
“We are aware of Ms. Hermes’ claims and firmly believe they are without merit. We look forward to presenting our case in court.”
Last month a jury in Los Angeles ordered the firm to pay $50 million to delivery driver Michael Garcia, who suffered burns when a super-sized drink spilled in his lap at a drive-through.
Garcia’s lawyers claimed the server who handed him three large drinks in February 2020 did not push one of them into the cardboard cupholder properly.
Starbucks said at the time of the ruling that it would appeal the award, which it said was “excessive.”
A landmark legal ruling against McDonalds in New Mexico in 1994 established something of a precedent for Americans suing fast food companies when 79-year-old Stella Liebeck was awarded over $2.8 million after spilling hot coffee on herself.
Although the award was reduced on appeal, the case was often cited as an example of the need to reform US tort laws.
Starbucks faces new hot spill lawsuit weeks after $50m ruling
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Starbucks faces new hot spill lawsuit weeks after $50m ruling
- The suit, filed at the city’s superior court, claims one of the cups in her order was not properly secured
- The negligence suit seeks unspecified general and special damages
How Netflix won Hollywood’s biggest prize, Warner Bros Discovery
- Board rejected Paramount’s $30 a share bid amid funding concerns, sources say
- Warner Bros board met daily before accepting Netflix’s binding offer
LOS ANGELES/NEW YORK: What started as a fact-finding mission for Netflix culminated in one of the biggest media deals in the last decade and one that stands to reshape the global entertainment business landscape, people with direct knowledge of the deal told Reuters. Netflix announced on Friday it had reached a deal to buy Warner Bros Discovery’s TV, film studios and streaming division for $72 billion. Although Netflix had publicly downplayed speculation about buying a major Hollywood studio as recently as October, the streaming pioneer threw its hat in the ring when Warner Bros Discovery kicked off an auction on October 21, after rejecting a trio of unsolicited offers from Paramount Skydance .
Details of Netflix’s plan and the Warner Bros board’s deliberations, based on interviews with seven advisers and executives, are reported here for the first time.
Initially motivated by curiosity about its business, Netflix executives quickly recognized the opportunity presented by Warner Bros, beyond the ability to offer the century-old studio’s deep catalog of movies and television shows to Netflix subscribers. Library titles are valuable to streaming services as these movies and shows can account for 80 percent of viewing, according to one person familiar with the business.
Warner Bros’ business units — particularly its theatrical distribution and promotion unit and its studio — were complementary to Netflix. The HBO Max streaming service also would benefit from insights learned years ago by streaming leader Netflix that would accelerate HBO’s growth, according to one person familiar with the situation. Netflix began flirting with the idea of acquiring the studio and streaming assets, another source familiar with the process told Reuters, after WBD announced plans in June to split into two publicly traded companies, separating its fading but cash-generating cable television networks from the legendary Warner Bros studios, HBO and the HBO Max streaming service.
Netflix and Warner Bros did not reply to requests for comment.
The work intensified this autumn, as Netflix began vying for the assets against Paramount and NBCUniversal’s parent company, Comcast.
Warner Bros kicked off the public auction in October, after Paramount submitted the first of three escalating offers for the media company in September. Sources familiar with the offer said Paramount aimed to pre-empt the planned separation because the split would undercut its ability to combine the traditional television networks businesses and increase the risk of being outbid for the studio by the likes of Netflix.
Around that time, banker JPMorgan Chase & Co. was advising Warner Bros Discovery CEO David Zaslav to consider reversing the order of the planned spin, shedding the Discovery Global unit comprising the company’s cable television assets first. This would give the company more flexibility, including the option to sell the studio, streaming and content assets, which advisers believed would draw strong interest, according to sources familiar with the matter.
Executives for the streaming service and its advisory team, which included the investment banks Moelis & Company, Wells Fargo and the law firm Skadden, Arps, Slate, Meagher & Flom, had been holding daily morning calls for the past two months, sources said. The group worked throughout Thanksgiving week — including multiple calls on Thanksgiving Day — to prepare a bid by the December 1 deadline.
Warner Bros’ board similarly convened every day for the last eight days leading up to the decision on Thursday, when Netflix presented the final offer that sources described as the only offer they considered binding and complete, sources familiar with the deliberations said.
The board favored Netflix’s deal, which would yield more immediate benefits over one by Comcast. The NBCUniversal parent proposed merging its entertainment division with Warner Bros Discovery, creating a much larger unit that would rival Walt Disney. But it would have taken years to execute, the sources said.
Comcast declined to comment.
Although Paramount raised its offer to $30 per share on Thursday for the entire company, for an equity value of $78 billion, according to sources familiar with the deal, the Warner Bros board had concerns about the financing, other sources said.
Paramount declined comment.
To reassure the seller over what is expected to be a significant regulatory review, Netflix put forward one of the largest breakup fees in M&A history of $5.8 billion, a sign of its belief it would win regulatory approval, the sources said. “No one lights $6 billion on fire without that conviction,” one of the sources said.
Until the moment late on Thursday night when Netflix learned its offer had been accepted — news that was greeted by clapping and cheering on a group call — one Netflix executive confided that they thought they had only a 50-50 chance.
