Contact Search AJAX recommendation displays backslash on contacts with apostrophes

When doing a contact search from the side bar in the demo installation of CiviCRM, if you search for a contact that contains an apostrophe in its name (like "St. John's Hospital") then the AJAX recommendation that is shown displays a backslash before the apostrophe. This should not display the backslash.

To recreate this problem, you have to create an organization contact with an apostrophe in its name. Go here http://drupal.demo.civicrm.org/civicrm/contact/add?ct=Organization&reset=1 and create the organization St. John's Hospital. Once the org is created, click on the "Contact Search" and start to type "john" or "hospital" and one of the suggestions will be St. John's Hospital but will be displayed as "St. John\'s Hospital" – shouldn't be like that.