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Million Miler Sues United [Judgment for UA Jan 2014] Judgment Affirmed Dec 2014

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Old Oct 1, 2013, 3:03 pm
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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
Appellant's (Lagen's) Brief due 4/2/2014

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
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Million Miler Sues United [Judgment for UA Jan 2014] Judgment Affirmed Dec 2014

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Old Sep 6, 2013, 10:27 pm
  #1711  
 
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Originally Posted by DaviddesJ
I don't think this dispute makes the least difference to Smisek's bonus. It only barely matters to the traveling public. It's mostly just the principle of the thing. You and I just have different principles.
The principal is that LIFETIME promise is LIFETIME promise.
You can't promise your wife/husband loyalty but do another and still say it's right thing to do.

BTW, thank you for keeping replying so this thread can always be seen.
People now will understand how SMI/J say one thing about loyalty in Hemispheres Magazine but do another.
Thank you!!! Thank you for your hard working!!!
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Old Sep 6, 2013, 10:38 pm
  #1712  
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Originally Posted by DaviddesJ
No, just the public interest.
Did you think, for a minute, that you might be representing UA's competitors interests? I have lifetime status with a competitor and my benefits there are still intact. I'm glad I made the decision, looking back, to have lifetime status with two different airlines and that at least one of them still provides the benefits they promised.

With your argument that UA can take away lifetime benefits anytime they want, someone just starting out a career with significant flying might rethink whether they can trust this airline and devote millions of miles of flying to it. Someone even close to or at million miler might rethink whether going for 2MM or 3MM makes sense and whether they should spread their flying out among other carriers that don't 180 on written promises.
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Old Sep 6, 2013, 10:39 pm
  #1713  
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Originally Posted by DaviddesJ
I want, "United has the right to terminate the Program and/or the Premier Program or to change the Program Rules, regulations, benefits, conditions of participation or mileage levels, in whole or in part, at any time, with or without notice, even though changes may affect the value of the mileage or certificates already accumulated," to mean what it says. I think that's the most important principle here.
I'm curious why you desire UA to have unrestricted power (regardless of other representations) versus the MP member, a class you are are a member of? How will that make the world a better place? What public good is this?
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Old Sep 6, 2013, 10:44 pm
  #1714  
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Originally Posted by WineCountryUA
I'm curious why you desire UA to have unrestricted power (regardless of other representations) versus the MP member, a class you are are a member of? How will that make the world a better place? What public good is this?
Absolute power corrupts absolutely.
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Old Sep 6, 2013, 10:44 pm
  #1715  
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Originally Posted by DaviddesJ
No, just the public interest.
The public interest is not served when the corporate world makes promises that are not based on disinterested generosity (i.e., a gift), but rather, for the consideration of the public spending money with a business, and then reciprocates by thanking them for their money and then providing nothing more than a big eff you as a replacement for the promise. This serves a particular faction of the 1%, and nothing more. That is not the public interest.
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Old Sep 6, 2013, 10:47 pm
  #1716  
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Originally Posted by pigx5
Please read carefully that MM program is not belong to Mileage Plus / Premier Program.
I think that's the most important principle here.
And I do recall the judge specifically addressing that:
"It is undeniable that plaintiff claims he has and continues to suffer an injury based upon his lost benefits," Leinenweber wrote. "At this stage of the litigation, the court finds it plausible that defendants had a contract with Million Miler members which differed from the contract they had with other Mileage Plus members."
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Old Sep 6, 2013, 10:56 pm
  #1717  
 
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Originally Posted by Xyzzy
Those who go to court in a case like this to "fight for what is right" are going to be disappointed. You are never going to get a court to order specific perfrmance in a case like this. I'm not sure what sort of settlement one can expect, but United is never going to give all PMUA MM members lifetime Premier Platinum.
You are absolutely correct - it's going to be a mess either way. I have zero idea how this could fix itself now. What I meant was United should have done the benefits for benefits BEFORE all this.

If UA wins, then it becomes a free-for-all with any program stating "LIFETIME" benefits.

If this seems like this is going to go to a jury, my hope is that UA settles by doing the right thing. If it does go to a jury, they will have to decide what would be the right thing...I guess? I don't know how these things work out.

You never know, UA may concede or they may not.

Originally Posted by Baze
Absolute power corrupts absolutely.
Beautifully said, Baze!

Last edited by FlyinHawaiian; Sep 7, 2013 at 5:26 am Reason: merge
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Old Sep 6, 2013, 11:10 pm
  #1718  
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Originally Posted by tom911
With your argument that UA can take away lifetime benefits anytime they want, someone just starting out a career with significant flying might rethink whether they can trust this airline and devote millions of miles of flying to it.
All of the other airlines have similar terms.
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Old Sep 6, 2013, 11:13 pm
  #1719  
 
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Originally Posted by DaviddesJ
All of the other airlines have similar terms.
United MM program doesn't belong to other airlines and the merged airline's name
is United. It's United to make the LIFETIME BENEFITS promise.

BTW, thank you for keeping replying so this thread can always be seen.
People now will understand how SMI/J say one thing about loyalty in Hemispheres Magazine but do another.
Thank you!!! Thank you for your hard working!!!
pigx5 is offline  
Old Sep 6, 2013, 11:26 pm
  #1720  
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Originally Posted by DaviddesJ
All of the other airlines have similar terms.
Which of UA's competitors has backtracked on promised lifetime benefits? UA is the only airline I know that has taken away promised benefits.
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Old Sep 6, 2013, 11:38 pm
  #1721  
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Originally Posted by tom911
Which of UA's competitors has backtracked on promised lifetime benefits?
Any of them could.

If you think one of them is less likely to, and you want to fly that airline for that reason, I think that's entirely appropriate. Nothing wrong with that. Vote with your feet and your pocketbook. I don't think the lawsuit should succeed, but if UA loses business because of this, that's entirely up to the flying public.
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Old Sep 7, 2013, 1:56 am
  #1722  
 
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Originally Posted by DaviddesJ
I don't think the lawsuit should succeed.
Not a lawyer, are you?
Always Flyin is offline  
Old Sep 7, 2013, 2:36 am
  #1723  
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Originally Posted by tom911
Which of UA's competitors has backtracked on promised lifetime benefits? UA is the only airline I know that has taken away promised benefits.
Delta. It used to be a "lifetime" benefit but was changed to "complimentary annual" for whatever MM tier you qualified for. While American didn't really change the benefits, they did change how you qualified for MM benefits. And I guess you could say that same thing happed to the people who were in CO's OnePass program.
Fanjet is offline  
Old Sep 7, 2013, 6:29 am
  #1724  
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Originally Posted by Fanjet
Delta. It used to be a "lifetime" benefit but was changed to "complimentary annual" for whatever MM tier you qualified for. While American didn't really change the benefits, they did change how you qualified for MM benefits. And I guess you could say that same thing happed to the people who were in CO's OnePass program.
There's a difference between how you qualify for a program, vs. them changing the benefits retroactively.

Have either DL or AA downgraded any of the MM benefits they offer after the fact?

Let's not get into CO, their MMers received a massive upgrade.
UA-NYC is offline  
Old Sep 7, 2013, 7:22 am
  #1725  
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Originally Posted by UA-NYC
There's a difference between how you qualify for a program, vs. them changing the benefits retroactively.
Sure -- but at the same time there is no way a company can or will promise that everything they gave you at some point in time will be exactly the same and unchanged the rest of your life. That's what it seems people here were somehow expecting. Have you ever looked into the warranty of a prduct that boasts, "Lifetime warranty!"? If you do look into it you'll find that it lasts, "For the life of the product."
Xyzzy is offline  


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