Drink Coupon Lawsuit- Class Action
Nov 16, 2011, 5:39 pm
#1
Original Poster
Join Date: Aug 2010
Posts: 102
Drink Coupon Lawsuit- Class Action
(Reuters) - Southwest Airlines Co was sued by an Illinois man over the discount carrier's decision to stop honoring coupons for free alcoholic drinks, which it had given to select travelers and which lacked expiration dates.
The plaintiff Adam Levitt said Southwest had for years awarded customers like him, who bought tickets through its premium-priced "Business Select" program, hundreds of thousands of coupons for the drinks, which would otherwise cost $5 each.
But on August 1, 2010, Southwest changed its policy, and said Business Select passengers may use their coupons only on the day of travel printed on them. Some other passengers were given more time.
"In an industry where the competition is always knocking (or banging) on the door and where watching the bottom-line is more important than ever, we owe it to our employees, customers, and shareholders to find ways to operate smarter," Mike Hafner, vice president of cabin services, wrote on a company blog.
Levitt, who lives in the Chicago area, said the policy change amounted to a breach of contract. He attached to his complaint copies of 45 coupons for free drinks, which he said he had accumulated and which the change left worthless.
"Southwest decided that it would make more money -- improve its 'bottom-line' -- by choosing not to honor the coupons that consumers had already paid and bargained for," said the complaint filed on Wednesday in Chicago federal court.
The lawsuit seeks class-action status for Southwest customers in the United States with unredeemed drink coupons. It seeks compensatory damages and other remedies.
Southwest had no immediate comment. A lawyer for Levitt did not immediately return a call seeking a comment.
U.S. carriers are reducing services and cutting expenses as fuel costs rise and an uncertain economy threatens to reduce demand for travel. Southwest, based in Dallas, has long been among the healthiest major U.S. carriers financially.
The case is Levitt v. Southwest Airlines Co, U.S. District Court, Northern District of Illinois, No. 11-08176.
The plaintiff Adam Levitt said Southwest had for years awarded customers like him, who bought tickets through its premium-priced "Business Select" program, hundreds of thousands of coupons for the drinks, which would otherwise cost $5 each.
But on August 1, 2010, Southwest changed its policy, and said Business Select passengers may use their coupons only on the day of travel printed on them. Some other passengers were given more time.
"In an industry where the competition is always knocking (or banging) on the door and where watching the bottom-line is more important than ever, we owe it to our employees, customers, and shareholders to find ways to operate smarter," Mike Hafner, vice president of cabin services, wrote on a company blog.
Levitt, who lives in the Chicago area, said the policy change amounted to a breach of contract. He attached to his complaint copies of 45 coupons for free drinks, which he said he had accumulated and which the change left worthless.
"Southwest decided that it would make more money -- improve its 'bottom-line' -- by choosing not to honor the coupons that consumers had already paid and bargained for," said the complaint filed on Wednesday in Chicago federal court.
The lawsuit seeks class-action status for Southwest customers in the United States with unredeemed drink coupons. It seeks compensatory damages and other remedies.
Southwest had no immediate comment. A lawyer for Levitt did not immediately return a call seeking a comment.
U.S. carriers are reducing services and cutting expenses as fuel costs rise and an uncertain economy threatens to reduce demand for travel. Southwest, based in Dallas, has long been among the healthiest major U.S. carriers financially.
The case is Levitt v. Southwest Airlines Co, U.S. District Court, Northern District of Illinois, No. 11-08176.
Nov 16, 2011, 5:45 pm
#2
Join Date: Feb 2007
Location: SJC, SFO
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Posts: 1,260
Where can I join the Class? I have books of those... The FA are now taking and keeping the expiring ones after they tell y ou they are no longer valid...
Nov 16, 2011, 6:26 pm
#3
Join Date: Oct 2001
Programs: LTP, PP
Posts: 8,698
Sweet. Let me guess the outcome of any class action.
Southwest will admit no wrong doing but agrees to establish a $10 million dollar fund to pay out claims in the interests of settling the matter. Class action lawyers take 40% ($4 million) plus expenses.
Individual payout cannot be estimated until size of pool is determined. Everyone gets to send in a very complex claim form estimating the BS trips and coupons that expired unused - but no proof is ever required so everyone responds inflating their "losses".
Three years from now everyone who responds gets one coupon for a free drink on the next WN flight.
Sad, but been there many times before...
Southwest will admit no wrong doing but agrees to establish a $10 million dollar fund to pay out claims in the interests of settling the matter. Class action lawyers take 40% ($4 million) plus expenses.
Individual payout cannot be estimated until size of pool is determined. Everyone gets to send in a very complex claim form estimating the BS trips and coupons that expired unused - but no proof is ever required so everyone responds inflating their "losses".
Three years from now everyone who responds gets one coupon for a free drink on the next WN flight.
Sad, but been there many times before...
Nov 16, 2011, 6:49 pm
#4
Join Date: Jul 2008
Location: MCO
Programs: Southwest Rapid Rewards
Posts: 791
It's going to be tossed out before it goes anywhere. The tickets contained the fine print of something to the effect that Southwest reserves the right to cancel the coupon program at any time. They can simply say they cancelled the existing coupon program, and instituted a new one.
Nov 16, 2011, 7:06 pm
#5
Join Date: Dec 2009
Location: Los Angeles
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Posts: 1,314
It's going to be tossed out before it goes anywhere. The tickets contained the fine print of something to the effect that Southwest reserves the right to cancel the coupon program at any time. They can simply say they cancelled the existing coupon program, and instituted a new one.
Nov 16, 2011, 7:59 pm
#7
Join Date: Dec 2009
Location: Middle Tennessee
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It's going to be tossed out before it goes anywhere. The tickets contained the fine print of something to the effect that Southwest reserves the right to cancel the coupon program at any time. They can simply say they cancelled the existing coupon program, and instituted a new one.
Nov 16, 2011, 8:31 pm
#8
Moderator: Southwest Airlines, Capital One
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How about: All plaintiff class members get some of what the plaintiffs' lawyer is smoking. @:-)
Nov 16, 2011, 9:32 pm
#9
FlyerTalk Evangelist
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Unless it proves to be exceptionally arduous for the attorneys (i.e. not enough billable holes of golf between court hearings), in which case everyone will get script for fractional shares of drink coupons and we will have to barter to consolidate our holdings to get a drink.
Nov 16, 2011, 9:49 pm
#10
Join Date: Mar 2011
Posts: 6,286
We've discussed this before; from another thread: I contacted two law firms months ago regarding potential class action lawsuits against Southwest. After a lot of discussion, both declined to move forward. The reasoning I was given (which I disagree with) is somewhat supported by the article I posted earlier in this thread; basically that the federal Airline Deregulation Act pre-empts state laws that purport to regulate airline "prices, routes, or services."
http://upgrd.com/matthew/court-sides...to-expire.html
It remains to be see if the courts will feel this way also.
I suspect Southwest will settle and agree to send out a few vouchers, best case scenario.
http://upgrd.com/matthew/court-sides...to-expire.html
It remains to be see if the courts will feel this way also.
I suspect Southwest will settle and agree to send out a few vouchers, best case scenario.
Last edited by ursine1; Nov 17, 2011 at 4:08 pm Reason: corrected truncated url
Nov 17, 2011, 6:21 am
#13
Join Date: Jan 2008
Posts: 50
If Southwest honored their agreement, they could avoid funneling money into the despised pockets of lawyers and postal workers, and pay the restitution to the customers where it belongs. Since that isn't the case, I'm happy to perpetuate the bureaucracy that surrounds a class-action lawsuit, and all the wasteful spending that goes with it. It is the American way, and I am a patriot.
Nov 17, 2011, 7:21 am
#14
Join Date: Oct 2009
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Posts: 11
Flier sues Southwest, says owed 45 free drinks
While most every program includes the disclaimer similar to "until we change our mind" this guy has, in my opinion, a really valid point.
http://goo.gl/hri9t
If what the airline offer is, as my brother says, "the sleeves out of their vest", then it's not worth the effort. However, if identified with a dollar value, canceling them is disingenuous.
http://goo.gl/hri9t
If what the airline offer is, as my brother says, "the sleeves out of their vest", then it's not worth the effort. However, if identified with a dollar value, canceling them is disingenuous.
Nov 17, 2011, 7:34 am
#15
Join Date: Sep 2008
Location: Alcatraz
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(Reuters) - Southwest Airlines Co was sued by an Illinois man over the discount carrier's decision to stop honoring coupons for free alcoholic drinks, which it had given to select travelers and which lacked expiration dates.
The plaintiff Adam Levitt said Southwest had for years awarded customers like him, who bought tickets through its premium-priced "Business Select" program, hundreds of thousands of coupons for the drinks, which would otherwise cost $5 each.
But on August 1, 2010, Southwest changed its policy, and said Business Select passengers may use their coupons only on the day of travel printed on them. Some other passengers were given more time.
"In an industry where the competition is always knocking (or banging) on the door and where watching the bottom-line is more important than ever, we owe it to our employees, customers, and shareholders to find ways to operate smarter," Mike Hafner, vice president of cabin services, wrote on a company blog.
Levitt, who lives in the Chicago area, said the policy change amounted to a breach of contract. He attached to his complaint copies of 45 coupons for free drinks, which he said he had accumulated and which the change left worthless.
"Southwest decided that it would make more money -- improve its 'bottom-line' -- by choosing not to honor the coupons that consumers had already paid and bargained for," said the complaint filed on Wednesday in Chicago federal court.
The lawsuit seeks class-action status for Southwest customers in the United States with unredeemed drink coupons. It seeks compensatory damages and other remedies.
Southwest had no immediate comment. A lawyer for Levitt did not immediately return a call seeking a comment.
U.S. carriers are reducing services and cutting expenses as fuel costs rise and an uncertain economy threatens to reduce demand for travel. Southwest, based in Dallas, has long been among the healthiest major U.S. carriers financially.
The case is Levitt v. Southwest Airlines Co, U.S. District Court, Northern District of Illinois, No. 11-08176.
The plaintiff Adam Levitt said Southwest had for years awarded customers like him, who bought tickets through its premium-priced "Business Select" program, hundreds of thousands of coupons for the drinks, which would otherwise cost $5 each.
But on August 1, 2010, Southwest changed its policy, and said Business Select passengers may use their coupons only on the day of travel printed on them. Some other passengers were given more time.
"In an industry where the competition is always knocking (or banging) on the door and where watching the bottom-line is more important than ever, we owe it to our employees, customers, and shareholders to find ways to operate smarter," Mike Hafner, vice president of cabin services, wrote on a company blog.
Levitt, who lives in the Chicago area, said the policy change amounted to a breach of contract. He attached to his complaint copies of 45 coupons for free drinks, which he said he had accumulated and which the change left worthless.
"Southwest decided that it would make more money -- improve its 'bottom-line' -- by choosing not to honor the coupons that consumers had already paid and bargained for," said the complaint filed on Wednesday in Chicago federal court.
The lawsuit seeks class-action status for Southwest customers in the United States with unredeemed drink coupons. It seeks compensatory damages and other remedies.
Southwest had no immediate comment. A lawyer for Levitt did not immediately return a call seeking a comment.
U.S. carriers are reducing services and cutting expenses as fuel costs rise and an uncertain economy threatens to reduce demand for travel. Southwest, based in Dallas, has long been among the healthiest major U.S. carriers financially.
The case is Levitt v. Southwest Airlines Co, U.S. District Court, Northern District of Illinois, No. 11-08176.