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Author Topic: Woman Sueing Starbucks for ?60m  (Read 2691 times)

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Offline alexander

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Woman Sueing Starbucks for ?60m
« on: Sep 20, 2006, 15:43 »
A woman in New York is sueing Starbucks after being told her free drink voucher was worthless. She is sueing the coffee shop chain for ?60m... How mad is that ?! I hope the Judge will order her to switch to de-caf...

Only in America? :roll:

http://news.bbc.co.uk/2/hi/business/5344884.stm

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Phil

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Re: Woman Sueing Starbucks for ?60m
« Reply #1 on: Sep 20, 2006, 17:09 »
Ah, the joys of living in a? litigious society!? :)

It's actually a class-action lawsuit, whereby Starbucks is sued on behalf of everyone who got ripped off; the woman will probably not get any more than the value of the coupon plus expenses. Big business gets away with crap like this all the time so it's nice to see someone force them to honour their commitments.

But you're right, alex ... it probably wouldn't happen anywhere but America ... wonder if there'll be a TV series?? :D

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jetster

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Re: Woman Sueing Starbucks for ?60m
« Reply #2 on: Sep 20, 2006, 18:15 »
How much profit does Starbucks make yearly? About $500m ? They should only be allowed to if they can prove it would leave them bankrupt. If a lawyer guesses it is worth $114m, then it's only three month's earnings, so they should have to stick by it.

Also, where does the $114m go to if the case is won?

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Phil

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Re: Woman Sueing Starbucks for ?60m
« Reply #3 on: Sep 20, 2006, 22:17 »
The company was valued at $1.6 billion in Jan last year. It returned figures of $127 million profit for the first quarter of this year (you can't extrapolate directly from that though, each quarter varies) but it's safe to say they're doing OK. It's a franchise, which means that they license each coffee shop to an independent owner, so the cost of a total loss in court would be borne across?a wide sector.

The $114 million (should a judge agree to that figure) would go to lawyers expenses (surprise!) and to all those who signed up for the class-action lawsuit. It is also they who would bear the cost of a loss and/or counter suit.


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Offline Lancelot

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Re: Woman Sueing Starbucks for ?60m
« Reply #4 on: Sep 21, 2006, 09:33 »
Big business gets away with crap like this all the time so it's nice to see someone force them to honour their commitments.


The company made an offer, they then withdrew that offer. Nothing in law wrong with that. Wether it is morally right is a different matter. I hope that the judge orders them to supply the lady with a free cup of coffee and pay her own legal costs, purely as a gesture of good faith.

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jetster

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Re: Woman Sueing Starbucks for ?60m
« Reply #5 on: Sep 21, 2006, 14:01 »
Ahh, so the real winner is the lawyer. No surprise there then. I take it the $114m is at retail value rather than the actual production cost. So for what is probably $100,000 worth of coffee to Starbucks, they're gonna be sued for $114m... well, that'll teach them. We should be supporting the woman because if Starbucks get away with it then they'll further the impression that big businesses can value money more than their customers.

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Phil

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Re: Woman Sueing Starbucks for ?60m
« Reply #6 on: Sep 21, 2006, 17:31 »
Big business gets away with crap like this all the time so it's nice to see someone force them to honour their commitments.


The company made an offer, they then withdrew that offer. Nothing in law wrong with that. Wether it is morally right is a different matter. I hope that the judge orders them to supply the lady with a free cup of coffee and pay her own legal costs, purely as a gesture of good faith.

Did you pass the US bar exam, Lancelot?  :)

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Offline Lancelot

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Re: Woman Sueing Starbucks for ?60m
« Reply #7 on: Sep 21, 2006, 22:35 »


Quote

Did you pass the US bar exam, Lancelot?? :)
Quote

Not quite. They don't use logic in law.

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Lancelot

Phil

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Re: Woman Sueing Starbucks for ?60m
« Reply #8 on: Sep 22, 2006, 17:30 »


Quote

Did you pass the US bar exam, Lancelot?? :)
Quote

Not quite. They don't use logic in law.

It's not used much anywhere!  :)

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Offline alexander

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Re: Woman Sueing Starbucks for ?60m
« Reply #9 on: Sep 22, 2006, 17:35 »
Especially not in America? :lol:

There's a question for Jetster right there, "Whatever happened to common sense ?"

Last seen on the Mayflower...

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You're born alone, you die alone.  Anything in between is make believe.

Phil

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Re: Woman Sueing Starbucks for ?60m
« Reply #10 on: Sep 22, 2006, 17:43 »
Especially not in America? :lol:

There's a question for Jetster right there, "Whatever happened to common sense ?"

Last seen on the Mayflower...

Now there's a dilemma ... are you referring to the Christian emigrants or the sailors who insisted on stopping to brew beer?  :D

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Offline alexander

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You're born alone, you die alone.  Anything in between is make believe.

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