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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 9, 2014, 4:34 pm
  #2386  
 
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Why are they almost completely silent on the issue of the systemwide and regional premier upgrades and also the elite bonus? These were legitimate material things taken away with the merger. The CPU and 3rd tier from the top (actually, it's 4th if you count Global Services) are much more subjective, because CPU can be influenced simply by more people paying for First, and United is perfectly within their rights to add another status.

If I was a lifetime 1K, and United added a new tier at 150,000 miles called Premier Diamond higher in the upgrade queue, they would be completely legally and morally clean, whereas if they removed 1K benefits to encourage people to go for Premier Diamond, I would be bothered. This is what they seem to have done with Gold and Plat.
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Old Sep 9, 2014, 4:52 pm
  #2387  
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MODERATOR NOTE:

I've changed the thread title to best reflect the current status of the lawsuit (and please let's not have all the lawyers jump on me for changing the term "summary judgement to "judgment" as it's simply based on space/character limitations in the thread title field, )

The new thread title is:
Million Miler Sues United [Judgment for UA Jan 2014] Appeal Underway [Sept 2014]
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Old Sep 9, 2014, 6:47 pm
  #2388  
 
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Originally Posted by abaheti

Assuming they rule for UA it will be interesting to see how they limit the ruling -- allowing illusory contracts by businesses by simply letting them state "our terms can change" is not a great precedent ("our return policy is 30 days, but we reserve the right to change that tomorrow, so it really isn't 30 days, but that's ok because we technically still have a return policy"). :-)
It isn't really the same thing. To be similar, it would have to be a shopping reward program where one clearly accepts the terms and conditions of the reward program.

Another example, United can't say tomorrow refundable tickets are now non-refundable - but can say, there are no more refundable tickets starting tomorrow, but we will honor past refundable tickets.
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Old Sep 9, 2014, 7:02 pm
  #2389  
 
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Originally Posted by ozstamps
Really? Are you a gambling Sailor?

=============


Chief Judge Wood: How can United really call something lifetime when really the only benefit we get from that is to understand that we can’t trust anything they say?

United Counsel: It is lifetime, but everything is subject to the MileagePlus rules

Chief Judge Wood: So it is not lifetime. It is lifetime unless we decide tomorrow that it would be a better business model to just abolish million mile altogether. You admit that that could happen?

United Counsel: Yes, I would agree that United has the ability under the MP rules to abolish the benefits that they give to MM flyers entirely.


= = = = = = =

Any Current or close to being Million Mile Tier Flyer can only shake their head in sadness to read that. Flyer Loyalty clearly means NOTHING to these folks.
I hope some FTers can get these quotes about United's definition of lifetime out to the media. I'd love to see these quotes picked up by newspaper columnists and other media.
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Old Sep 9, 2014, 7:06 pm
  #2390  
 
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Originally Posted by HereAndThere
I hope some FTers can get these quotes about United's definition of lifetime out to the media. I'd love to see these quotes picked up by newspaper columnists and other media.
Only the hopelessly naive are shaking their heads. Most of us (not on FT) recognized these programs as a business arrangement, not a love-fest, and either take our business elsewhere as we see fit or recognize it for what it is.

Its not a popular opinion here, but reality isn't always popular.

The sympathy level in the general public for frequent flyer awards devaluation might be somewhat less than one might think reading these pages.
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Old Sep 9, 2014, 7:15 pm
  #2391  
 
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Originally Posted by LaserSailor
Only the hopelessly naive are shaking their heads. Most of us (not on FT) recognized these programs as a business arrangement, not a love-fest, and either take our business elsewhere as we see fit or recognize it for what it is.

Its not a popular opinion here, but reality isn't always popular.

The sympathy level in the general public for frequent flyer awards devaluation might be somewhat less than one might think reading these pages.
Based on the media coverage for the lawsuit thus far, I thinks its clear the mainstream interest in this case is low to nonexistent. It would play as another problem of the 1% - nut much sympathy there.
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Old Sep 9, 2014, 8:06 pm
  #2392  
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Originally Posted by HNLbasedFlyer

Another example, United can't say tomorrow refundable tickets are now non-refundable - but can say, there are no more refundable tickets starting tomorrow, but we will honor past refundable tickets.

But, using your "interesting" logic, they CAN say written Million Miler "lifetime" benefits, that one spends $100,000+ to attain can be scrapped overnight with no notice?

Don't aim for a career in law, or in Corporate PR, is my gentle suggestion.

As has been posted many times on this thread, what UA offers new Million Milers going FORWARD is entirely their call. No-one disagrees with that.

They can say "From Jan 1 2012, attain One Million eligible Flight Miles, and you will receive a Hershey Bar and a plastic lapel button". That is ALL you have a right and expectation to receive.

But the 1000s of us who were offered specifically this below for some years, and were assured in writing specifically this annual benefit on United own website once they crossed that bar, and met the flown miles target they outlined, are entitled to receive this VERY modest reward promise. Backdated a few years from when it was unilaterally ceased of course. Jeffey owes us all a half dozen regionals and a few extra as an apology measure.

There are a million 'grandfathered' programs out there, in a million fields. It is commonplace. Most companies have the brains and ethics to honour them.


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Old Sep 9, 2014, 8:13 pm
  #2393  
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Originally Posted by ozstamps
There are a million 'grandfathered' programs out there, in a million fields. It is commonplace. Most companies have the brains and ethics to honour them.
I have to say that the transcript of what the UA lawyer said was rather interesting. They make absolutely no secret of the fact that they feel they can terminate the MM prgram at any time. They do however, also admit that doing so would be Rather Bad(TM). At least it seems that the judges understand all the nuances of the case. I'm quite interested in what their ruling is.
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Old Sep 9, 2014, 8:31 pm
  #2394  
 
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Originally Posted by LaserSailor
Only the hopelessly naive are shaking their heads. Most of us (not on FT) recognized these programs as a business arrangement, not a love-fest, and either take our business elsewhere as we see fit or recognize it for what it is.

Its not a popular opinion here, but reality isn't always popular.

The sympathy level in the general public for frequent flyer awards devaluation might be somewhat less than one might think reading these pages.
Show me a reputable business that will publicly say they offer "lifetime benefits" that can be withdrawn at anytime the business wants to withdraw them. I don't see the general public being sympathetic to that attempt at deception.
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Old Sep 9, 2014, 9:05 pm
  #2395  
 
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Originally Posted by LaserSailor

The sympathy level in the general public for frequent flyer awards devaluation might be somewhat less than one might think reading these pages.
This has nothing to do with award devaluations it's something entirely different. They would have had no complaints had they changed the program going forward, grandfathering in those who had qualified.
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Old Sep 9, 2014, 9:05 pm
  #2396  
 
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Originally Posted by HereAndThere
I hope some FTers can get these quotes about United's definition of lifetime out to the media. I'd love to see these quotes picked up by newspaper columnists and other media.
+1 and being ORD based I am amazed the media in at least Chicago have barely mentioned this case.

Originally Posted by fly18725
..It would play as another problem of the 1% - nut much sympathy there.
I disagree. If the media were to let the vast majority of those flying UAL (non FT'ers and non 1%) that they do not honor commitments made to their customers, it would have a strong negative impact on UAL. Many issues that were lost in the courts have been addressed by customer action.
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Old Sep 9, 2014, 9:10 pm
  #2397  
 
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Originally Posted by escapefromphl
This has nothing to do with award devaluations it's something entirely different. They would have had no complaints had they changed the program going forward, grandfathering in those who had qualified.
I should have used 'Frequent flyer program devaluations" to avoid confusing that point. Apologies.

I disagree. If the media were to let the vast majority of those flying UAL (non FT'ers and non 1%) that they do not honor commitments made to their customers, it would have a strong negative impact on UAL.
Do people here on FT understand that for 99% of the flying public, the 'relationship' with the airline ends when the flyer gets to their destination or completes their round trip? If you don't, this might help guide why

- the media doesn't follow these stories
- the public is uninterested
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Old Sep 9, 2014, 9:45 pm
  #2398  
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Originally Posted by LaserSailor

- the public is uninterested
"Uninterested" in Mileage Plus? The last figure I saw some years back was the the worldwide Mileage Plus program had about FIFTY MILLION members.

With the quite massive rollout of Chase Visa cards in recent years, it is likely far higher now.

Now sure, a decent chunk of those are not active, but even if we say a super conservative 20% of them are, that is 10 MILLION folks who'd be pretty aghast to read in the media that legal counsel for the airline is saying this week in a US Appeals Court that NOTHING is certain from this carrier re flyer benefits.

And a Chief United States Appeal Judge has concluded that the current United corporate culture is that "we can’t trust anything they say", and United legal attorney agrees with that, will not play well I'd suggest in Hooterville - or anywhere else.

If Ma and Pa Kettle with their 30,000 or whatever "free" Chase Miles get the feeling that their miles or their awards they are saving for, might well be removed tomorrow - no matter how unlikely that might be, they'll get angry, and many will go elsewhere.

"If they screw over and lie to their very highest level and most loyal flyers, what hope do we have?" etc.

10 million newly "Uninterested" current flying clients, given United's recent down the toilet PRASM figures, is a major headache they do not need right now.

All over a couple of measly Regional, 1 way upgrades, they clearly promised to all Million Milers in writing, that UA totally controls the capacity of anyway!

I suggest all concerned Million Milers reading this, forward this link below to your local media, wherever you are - to the Aviation writer especially -

http://www.flyertalk.com/forum/unite...2014-a-79.html

These things can gain traction even if started locally as this is not time dated, and can be used on a quiet news day.


Originally Posted by ozstamps

Chief Appeals Judge Wood: How can United really call something lifetime, when really the only benefit we get from that is to understand that we can’t trust anything they say?

United Counsel: It is lifetime, but everything is subject to the MileagePlus rules

Chief Appeals Judge Wood: So it is not lifetime. It is lifetime unless we decide tomorrow that it would be a better business model to just abolish Million Mile altogether. You admit that that could happen?

United Counsel: Yes, I would agree that United has the ability under the MP rules to abolish the benefits that they give to MM flyers entirely.

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Old Sep 9, 2014, 10:13 pm
  #2399  
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Originally Posted by ozstamps
"Uninterested" in Mileage Plus? The last figure I saw some years back was the the worldwide Mileage Plus program had about FIFTY MILLION members.
The whole "UA is lying/deceptive and admits it!" angle is rather interesting. But as far as traction with the public is concerned I think the public will be uninterested in something that affects far fewer than 1% of those fifty millin members.
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Old Sep 11, 2014, 8:35 am
  #2400  
 
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Just posting this article:

United Broke Frequent Flier Contract, 7th Circ. Told

By Lance Duroni

Law360, Chicago (September 08, 2014, 7:23 PM ET) -- A United Continental Holdings Inc. customer urged the Seventh Circuit on Monday to revive a proposed class action accusing the airline of wrongfully yanking his frequent-flier benefits, arguing United reneged on a lifetime contract with customers who achieved “million miler” status.

Plaintiff George Lagen reasonably believed that, as a million-miler, he had a lifetime pact with United separate from the contract governing its MileagePlus frequent flier program, shielding him from the airline’s rollback of frequent flier benefits, his attorney told a three-judge panel during oral arguments in Chicago.

Boyce Richardson of the Edgar Law Firm LLC, who represents Lagen, told the judges that the purported contract barred United from transitioning his client and thousands of other million-milers into a lower frequent flier class, where they have been subject to restrictions on seat upgrades and other reduced benefits.



http://www.law360.com/commercialcont...mpaign=section

Last edited by l etoile; Sep 11, 2014 at 8:02 pm Reason: copyright
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