Oct 1, 2013, 3:03 pm
Last edit by: Ari
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• • • • •
[Please post
NLY status updates and relevant Q&A here.]Plaintiff: George Lagen, on behalf of himself and all others similarly situated
Defendant: United Continental Holdings, Inc. and United Airlines, Inc.
Filed In The United States District Court For The Northern District Of Illinois Eastern Division
Case No. 1:12-cv-04056
Filed: 05/24/2012
Judge Harry D. Leinenweber
Magistrate Judge Young B. Kim
Proposed class: All persons, as of midnight, December 31, 2011, who were members of the Million Mile Program under United Airlines’ Mileage Plus frequent flyer program.
Filings/rulings can be found on www.pacer.gov (requires registration)
12 June 2012 - Amended Class Action Complaint filed
Spring 2013 - Court denies United's request to close case
Spring 2013 - Plaintiff files for suit to become a class action, United asks Judge before he decides if there could be limited discovery (which typically happens after case becomes class-action). Judge allows it.
August 2013 - Depositions/Limited Discovery completed and transcripts were handed over to the court.
22 October 2013 - Pursuant to an order of the Court, both sides filed cross-motions for summary judgment:
Plaintiff contends that he is a United pre-merger Million Miler, that United promised Million Miler fliers certain lifetime benefits on its web site, including two regional upgrades every year and Premier Executive status, which provided certain delineated benefits (e.g., 100% mileage bonus). Plaintiff cites deposition testimony from United stating "lifetime" means: "as long as they were really able to fly … as long as someone is coming on a plane and alive and capable of flying." Plaintiff concludes by stating that United has breached its contract with its pre-merger Million Miler fliers by reducing the lifetime benefits they were promised.
United contends in its motion that Million Miler is part of the MileagePlus program, that United reserved the right to make any changes it wishes to the MileagePlus program, and that the changes it made that plaintiff now complains of are therefore contractually permissible. United does not admit, and does not address, the "lifetime" benefit statements that it made on its website.
23 January 2014 - Judge denies Plaintiff's motion for summary judgment and grants United's cross-motion for summary judgment. Judgment entered in favor of United.
The Judge begins his Opinion with a quote from Job: “The Lord giveth and the Lord taketh away” and then holds that Plaintiff has not produced any evidence that UA made him an offer to participate in a separate MM program.
The Court noted that: “The sum total of his evidence is vague references to ‘electronic and written correspondence’ from United, which, in both instances postdates his qualification as a Million Mile flyer and was not directed to him; and a 1997 Newsletter from United announcing the creation of the program he could not remember receiving. However the card he did receive from United, admitting him to MililionMile Flyer Program, shows that his new status is clearly a status within the Mileage Plus Frequent Flyer Program, as does the form letters United sent to applicants advising them of their admission to the MillionMile Flyer program. In fact, Plaintiff in his Complaint alleges that the MillionMile Flyer program was part of the Mileage Plus program. He has not produced any document that comes close to substantiating that the programs were separate and distinct."
Bottom line: The Court agreed with United's position that the Plaintiff had not proved the existence of a separate contract between itself and the Million Milers.
Full decision: http://media.wandr.me/MMerOpinion.pdf
20 February 2014
Plaintiff filed a notice of appeal of the trial court's decision. The record on appeal is due by March 13, 2014.
Appeal docs available at:
- http://media.wandr.me/UAL-MM-Appeal-filed-2-20-14.pdf
- http://media.wandr.me/UAL-MM-letter-of-appeal.pdf
8 September 2014
Oral arguments were heard by a three judge panel. Links to the original MP3 of the Court's recording and also some transcription can be found around post 2350 and for several more following that.
http://www.flyertalk.com/forum/23496499-post2361.html
22 December 2014
Affirmed over a dissent.
http://media.ca7.uscourts.gov/cgi-bin/rssExec.pl?Submit=Display&Path=Y2014/D12-22/C:14-1375:J:Wood:aut:T:fnOp:N:1474449:S:0
Million Miler Sues United [Judgment for UA Jan 2014] Judgment Affirmed Dec 2014
May 31, 2012, 8:21 am
#136
Join Date: Sep 2009
Programs: UA GS>1K>Nothing; DL DM 2MM; AS 75K>Nothing>MVP
Posts: 9,341
I don't know why they just don't grandfather a few people and offer them a one time choice of CR1 or spousal benefits going forward subject to proviso that PMUA flyers are only allowed to use BIS (NOT pre-merger EQM) toward MM status.
Cost can't be too high, and I don't know about others but I'd take the extra EQM and the spousal benefit in a heartbeat.
Cost can't be too high, and I don't know about others but I'd take the extra EQM and the spousal benefit in a heartbeat.
May 31, 2012, 12:42 pm
#137
Join Date: Dec 2009
Location: COS
Programs: UA Gold/1.5MM (several years running now!), Marriott LTTE, Hertz Prez
Posts: 1,899
A lot of national news outlets are picking this story up:
http://www.foxnews.com/travel/2012/0...ing-his-perks/
I would have to say that United's spokeswoman is either just cluelessly stupid or egregiously dishonest (or likely both):
"One Million Milers receive benefits at the 50,000-mile premier status level – the same as before. We believe this suit is without merit."
Really? So there was no reduction in benefit then? Now I am getting angry too - this is a lose/lose for United. Mary ought to just keep her dumb mouth shut.
http://www.foxnews.com/travel/2012/0...ing-his-perks/
I would have to say that United's spokeswoman is either just cluelessly stupid or egregiously dishonest (or likely both):
"One Million Milers receive benefits at the 50,000-mile premier status level – the same as before. We believe this suit is without merit."
Really? So there was no reduction in benefit then? Now I am getting angry too - this is a lose/lose for United. Mary ought to just keep her dumb mouth shut.
May 31, 2012, 2:08 pm
#138
Join Date: Apr 2008
Posts: 2,358
If UA cannot change "lifetime" benefits that were earned by customers who met the terms and conditions of earning those "lifetime" benefits (meaning reduce RDM earning and eliminating the 2 annual regional upgrades) wouldn't that also mean that they cannot add benefits - like unlimited complimentary domestic upgrades and awarding matching status for the spouse of the Million Miler?
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The real issue in dispute repeatedly gets sidetracked by all the “Red Herrings” arguments presented by certain posters concerning UA’s right to change its program at any time.
UA most certainly can change its program at any time. However, with respect to the Million-Mile program, there were specific benefits that were promised for life.
Although UA can change the Million-Mile program for NEW customers entering the program, UA cannot legally REDUCE benefits that were advertised to customers by UA as “lifetime” benefits.
The many side-issues by various posters stating that UA can change its plan ignore the fact that the Million-Mile program was a quasi separate program within Mileage Plus up until 1/1/2012.
Upon reaching million-mile status before 1/1/2012, UA customers received a personalized plaque and specific one-time benefits AND a promise of other benefits FOR LIFE (or at the end of every year, which means the same thing).
Moreover, after the merger of the airlines was announced in 2010, UA, in its frequently asked questions section of united.com, specifically stated that million-milers would continue to receive their benefits as they “always” have.
In short, UA carved out a segment of its loyalty program and called it Million-Miler program and made specific promises to those attaining this achievement.
Those specific promises appeared on united.com until the former president of Mileage Plus (Jeffery Foland) was asked about the inconsistency of the changes to the Million-Mile program versus those screen shots that appeared for at least one year following the merger of the two airlines. Mr. Foland’s response was not consistent with facts.
Furthermore, in an interview with a Wall Street Journal reporter, Mr. Foland stated to the reporter that there were no “particular” benefits promised to million-milers. Mr. Foland made this false statement even though he and the WSJ reporter were, during the interview, discussing united.com screen shots that specifically showed “particular” lifetime benefits. Mr. Foland also told the WSJ reporter that those screen shots were “regrettable” and “confusing” but he did not offer to honor what had appeared on UA’s official interface between UA and the public.
Yes, at the discretion of UA, the Million-Mile program can be changed but it can only be changed by INCREASING benefits, NOT by taking away benefits that were advertised by UA as “lifetime” benefits.
The matter you asked about "like unlimited complimentary domestic upgrades" are not specific to million-milers, therefore, that issue is not part of the dispute.
Look up thread at post # 137. This is a screen shot showing a "particular" benefit shown on united.com that the former president of Mileage Plus said did not exist. Credibility issue? Galore!
The language of the “lifetime” benefits as applicable to UA will hopefully be set straight by the court.
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May 31, 2012, 2:15 pm
#139
Join Date: Oct 2007
Location: Dubai / NYC
Programs: EK-IO, UA-1K2MM, ETIHAD-GOLD, SPG-PLAT LIFETIME, JUMEIRAH SERIUS GOLD
Posts: 5,220
I disagree with those that think this will be settled quickly. I predict that United will fight this in order to protect the precedent of being able to change the program at will. If United settles, they are essentially inviting future class action lawsuits whenever they make minor changes to the program. This also creates a real entitlement that impacts the finances of the company and future liabilities. I think United will do everything in its power to get this thrown out of court early in the process, or they will drain the resources of the class action attorneys so that their costs go far beyond any potential damages.
Agree .. when a Judge is told United posted this on their OWN website a few months back, directed all Million Milers read it via an email, and then totally reneged on it, hence this suit, he will kick their butts.
All MM want is the 2 x CR1 a year as we were PROMISED IN WRITING, and the 100% mile bonus back.
Simple to do, lawsuit dismissed and some of United's highest flying customers will start spending again.
Being lied to to boldly will leave a lingering distrust for many however.
All MM want is the 2 x CR1 a year as we were PROMISED IN WRITING, and the 100% mile bonus back.
Simple to do, lawsuit dismissed and some of United's highest flying customers will start spending again.
Being lied to to boldly will leave a lingering distrust for many however.
We have all read the circled words from United ad nausieam you keep posting and posting..........I get such a kick out of you being so sure what a judge will do.......why cant you just say its your opinion instead of coming accross like you have a crystal ball? Further, you are correct that we were promised (and lied to) about the 2 upgrades per year.....but NO WHERE have I seen it written that we will get the 100% bonus miles. We all know your point is valid and it was inferred that we would.....but not promised in writing...We were promised Premeir Exec for life (which no longer earns 100%).
UA will never let this get to court for fear of what would happen if the flood gates are let open. Hopefully, they will realize its cheaper in the long run to give up the benefits we expected by giving us a choice of the old or the new program.
The real problem will be what to do with the PMCO MM flyers. You certainly can't take anything away from them. On the other hand, they were not lied to like we were and UA will fight tooth and nail to GIVE us back as little as PSBL without having to go to court
Last edited by iluv2fly; May 31, 2012 at 2:41 pm Reason: merge
May 31, 2012, 2:55 pm
#140
Join Date: Jun 2002
Location: Southern California, GVA, SIN, LHR, BRU, CDG
Programs: UA LT GS 4.12MM (4.08MM BIS), AA EXP 1.86MM ,DL DM 1.1MM, HH LT Diamond, SPG Platinum
Posts: 1,182
I disagree with those that think this will be settled quickly. I predict that United will fight this in order to protect the precedent of being able to change the program at will. If United settles, they are essentially inviting future class action lawsuits whenever they make minor changes to the program. This also creates a real entitlement that impacts the finances of the company and future liabilities. I think United will do everything in its power to get this thrown out of court early in the process, or they will drain the resources of the class action attorneys so that their costs go far beyond any potential damages.
I believe that most organizations would settle this for the primary reason of getting rid of it...and the minimization of PR damage. The cost to UA would be negligible and sincere "mea culpa" would generate great press! I have to believe that most UA sales management and public relations as well as FF program staff would welcome an action like this (our UA sales reps and the UA sales VPs we have met with have all but stated this!) Saying this, I don't believe there will be a rapid settlement due to the simple reason that there is a Harvard J.D. in control of UA and a "we know better" attitude that permeates his current sCO staff. When a company...especially one that competes on more than providing a commodity (transportation)...i.e. customer service...said company has to recognize some aspects of "the customer knows best" philosophy...so far, the "new" UA does not.
It will be interesting to see what happens...time will tell!!
May 31, 2012, 3:02 pm
#141
Moderator: United Airlines
Join Date: Jun 2007
Location: SFO
Programs: UA Plat 1.995MM, Hyatt Discoverist, Marriott Plat/LT Gold, Hilton Silver, IHG Plat
Posts: 66,856
May 31, 2012, 3:54 pm
#142
FlyerTalk Evangelist
Join Date: Aug 2009
Location: ZOA, SFO, HKG
Programs: UA 1K 0.9MM, Marriott Gold, HHonors Gold, Hertz PC, SBux Gold, TSA Pre✓
Posts: 13,811
Well - for sure, based on the prima facie of this case, UA is unlikely to MTD/MSJ this case for sure.
Let's the war begins...
That will be the questions for the court:
1. How effective is UA's "change without notice" T&Cs?
2. Has UA misrepresent/defraud MMs?
3. Has UA gone into unjust enrichment (Does this "enhancement" a change you like)?
If you find a lawyer that take miles, RPU or GPU for compensation, let me know
I am not a MM. But do you really know that by switching to a spousal benefit from the rest, UA can in fact save a lot. Without going to the detail (as I guess most people here know Premier Gold benefits already), the GPU/RPU deal was swapped by the benefits that spouses have been enjoying thorugh their elite half, except for the bonus miles.
UA is simply "cleaning" house in this case.
Let's the war begins...
1. How effective is UA's "change without notice" T&Cs?
2. Has UA misrepresent/defraud MMs?
3. Has UA gone into unjust enrichment (Does this "enhancement" a change you like)?
If you find a lawyer that take miles, RPU or GPU for compensation, let me know
UA is simply "cleaning" house in this case.
May 31, 2012, 4:01 pm
#143
Join Date: Mar 2001
Location: New York / Hawaii
Programs: UA Global Services, HH Diamond
Posts: 5,178
UA forced to settle?
How many think UA will settle and toss MM's some added perks?
It's probably what they should do... by fighting this, they're just digging themselves deeper into a PR hole they don't want to be in. The news has been slow... the networks would love to eat up a story like this, just like they did with the no-preboarding of families with children non-story they recently ran as a story.
It's probably what they should do... by fighting this, they're just digging themselves deeper into a PR hole they don't want to be in. The news has been slow... the networks would love to eat up a story like this, just like they did with the no-preboarding of families with children non-story they recently ran as a story.
May 31, 2012, 4:02 pm
#144
Join Date: Apr 2008
Posts: 2,358
"Congratulations. It is our privilege to recognize you XXXXXX (my name) as one of the distinct few to reach 1 MILLION LIFETIME FLIGHT MILES
Thank you for your years of loyalty. We are honored that you have chosen to travel on United."
It is signed by Jeffery T. Foland
I am also aware of a few other people who received a similar document during 2010 and 2011.
Could it be that the new UA management goofed and selectively sent these items to only some, but not all those reaching million-mile status?
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May 31, 2012, 4:25 pm
#145
FlyerTalk Evangelist
Join Date: Aug 2009
Location: ZOA, SFO, HKG
Programs: UA 1K 0.9MM, Marriott Gold, HHonors Gold, Hertz PC, SBux Gold, TSA Pre✓
Posts: 13,811
May 31, 2012, 5:36 pm
#146
Join Date: May 2009
Location: USA
Programs: Marriott Titanium -> United Silver
Posts: 937
I disagree with those that think this will be settled quickly. I predict that United will fight this in order to protect the precedent of being able to change the program at will. If United settles, they are essentially inviting future class action lawsuits whenever they make minor changes to the program. This also creates a real entitlement that impacts the finances of the company and future liabilities. I think United will do everything in its power to get this thrown out of court early in the process, or they will drain the resources of the class action attorneys so that their costs go far beyond any potential damages.
United will continue to offer the MM program, encourage frequent flyers to travel on the airline, degrade the program, settle with the class, and then repeat the cycle. They are terrible people, but excellent businesspeople
May 31, 2012, 5:47 pm
#147
Join Date: Apr 2008
Posts: 2,358
We must all realize that certain individuals who comprise the new UA management, brought this problem on themselves.
The lawsuit and other negative bad press cannot be good for UA's well-being, as a going concern. Smisek and his crew do not seem to care about the long-term survival of the company.
Prior to the merger of the two airlines, UA was running quite well. In fact, when the merger was announced, Smisek claimed the combined companies (UA & CO) were a "merger of equals" which we now know was really the passive and naive take-over of an equal by Continental.
The mismanagement exhibited by Smisek and his crew will soon come home to roost at their doorstep via the lawsuit.
If the shareholders had any idea of the intentional damage caused to the goodwill of UA, they would fire the new UA management immediately.
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May 31, 2012, 6:07 pm
#148
FlyerTalk Evangelist
Join Date: Sep 2002
Location: Between AUS, EWR, and YTO In a little twisty maze of airline seats, all alike.. but I wanna go home with the armadillo
Programs: CO, NW, & UA forum moderator emeritus
Posts: 35,432
w that Platinum at 1MM is not in the cards?
May 31, 2012, 6:20 pm
#149
Join Date: Dec 2001
Location: Coconut Creek, FL
Programs: AA Lifetime Platinum-2 MM Starwood Plat,Delta DM
Posts: 975
I am glad to see this actually. These programs are flipped around so much that I have no doubt there have been issues. I am sure there are all sorts of clauses like "we reserve the right to make any changes as needed etc" But why go for the million miler status or the yearly status levels if they can flip them with little or no notice?
Rob
Rob
May 31, 2012, 6:28 pm
#150
Join Date: Aug 2007
Location: Near SEA
Programs: UA MM, AS MVPG75K, Marriott Lifetime Gold
Posts: 7,969
I am glad to see this actually. These programs are flipped around so much that I have no doubt there have been issues. I am sure there are all sorts of clauses like "we reserve the right to make any changes as needed etc" But why go for the million miler status or the yearly status levels if they can flip them with little or no notice?
For example, if you have a large number of miles that you're stockpiling, you can't scream and whine if they change the redemption rates.