That argument is specious to begin with, because typically a hot water heater should be set such that its maximum temperature would not cause a burn (just like

That argument is specious to begin with, because typically a hot water heater should be set such that its maximum temperature would not cause a burn (just like how coffee should typically be served at a temperature that is not capable of melting skin), but leaving that aside - the coffee case was a private tort case - a civil suit - and therefore does not and could not by definition support calling the country in which it occured a "nanny state".