March 30, 2010

McDonald's Settles Case Involving Punitive Damages for Strip Search

Last year we posted about a case in which McDonald's was hit for punitive damages because a prank caller supposedly tricked a McDonald's store manager into performing a strip search on a store employee. Actually, the manager asked her boyfriend, who was not even a store employer, to perform a body cavity search. He ended up sexually abusing the employee in the process.

Amazingly, the Kentucky Court of Appeals ordered McDonald's to pay $1 million in punitive damages to the manager who authorized the body cavity search, plus another $5 million to the victim of the strip search. The Courier-Journal of Louisville, Kentucky is now reporting that McDonald's has settled the case for an undisclosed amount.