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Australian Court Awards $8 Million Against KFC


Australian Court Awards $8 Million Against KFC

May 1, 2012

Samaan v Kentucky Fried Chicken Pty Ltd., (case number 2012 NSWSC 381), in the New South Wales Supreme Court.

On April 27, 2012, the New South Wales Supreme Court awarded $8 million to the family of a girl who suffered brain damage after allegedly contracting salmonella from a KFC chicken product.

The plaintiff alleged that KFC sold the chicken product under circumstances where it knew or should have known that the chicken product was likely to be contaminated or unsafe, and failed to take adequate measures or precautions and failed adequately to devise, implement and monitor quality control systems to ensure that the chicken was safe for consumption. The court ruled in favor of the plaintiff, reasoning that evidence presented in the case enabled the conclusion to be drawn that, more likely than not, the chicken product served to the plaintiff became contaminated with salmonella in the final preparation process after it was cooked.

This ruling clearly illustrates that the large civil damages awards that are typically seen only in the U.S. have begun to proliferate internationally. Bearing this in mind, international businesses would benefit from advice of U.S. counsel well versed in U.S. litigation avoidance and risk management strategies.        

For more information, please contact any member of the Global Insurance Services Practice Group.