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It certainly did go to trial, and the jury did elect to levy high punitive damages against McDonald's:
You're right. You'll have to forgive me, but it was not the Liebeck case I was thinking of. I reviewed this case and a similar one in my evidence law class in college and mixed up the names.
It's late, I've been out of college for a long time, and I haven't worked in civil litigation in a while.