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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 13, 2015, 10:16 am
  #2521  
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Originally Posted by UrbaneGent
Hello Everyone,

Well, I will finally "out" myself - I am the one who indeed filed the Million Mile Flyer lawsuit against United.....
And I want to sincerely thank you for doing what you did! ^
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Old Sep 13, 2015, 10:24 am
  #2522  
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Originally Posted by chitownflyer
But United has taken the position that it can change the terms and conditions of its contracts at any time.
That's totally inaccurate. The terms of the Mileage Plus program expressly allow United to change the program rules at any time and in its sole discretion.

I can guarantee you that the severance agreement with Smisek contains no such provision.
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Old Sep 13, 2015, 3:58 pm
  #2523  
 
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Originally Posted by Kacee
That's totally inaccurate. The terms of the Mileage Plus program expressly allow United to change the program rules at any time and in its sole discretion.

I can guarantee you that the severance agreement with Smisek contains no such provision.
I believe that was posted tongue and cheek.

But, I would guess his contract has a morals clause or something similar that would void the severance if he was convicted of a felony related to his employment.
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Old Sep 13, 2015, 4:41 pm
  #2524  
 
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Originally Posted by SFO 1K
Any good attorney, and board member, would tell you never to respond to private communication between a plaintiff and anyone at the defendant's side of the table, or their employees. So your error here is to have expected any response. I'm surprised your attorney didn't tell you the same.

That said, thank you for your efforts. I would have liked those 2 RPUs back, and I'd have liked getting Platinum instead of Gold, but my spouse does seem to like being 1K when flying solo, so for me it's likely a wash at this point.
concur
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Old Sep 13, 2015, 7:02 pm
  #2525  
 
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Originally Posted by UrbaneGent
Hello Everyone,

Well, I will finally "out" myself - I am the one who indeed filed the Million Mile Flyer lawsuit against United.
UrbaneGent,
Thank you for your effort!!

pigx5
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Old Sep 13, 2015, 7:28 pm
  #2526  
 
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Originally Posted by UrbaneGent
Hello Everyone,

Well, I will finally "out" myself - I am the one who indeed filed the Million Mile Flyer lawsuit against United.
Thank you for your efforts!

I am curious what you would advise were the "lessons learned" in your effort?

And, for the others on this forum, I am not even thinking about the pedestrian "Don't trust UA" lesson.

Many thanks!
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Old Sep 13, 2015, 7:43 pm
  #2527  
 
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Thanks for your efforts UG.

I'm curious if you would be willing to pass along your thoughts about my earlier post here:

http://www.flyertalk.com/forum/22497843-post2207.html

Did you and your attorney discuss the idea that a contract could exist based on UA's written promises?

As before, IANAL, but curious nonetheless.
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Old Sep 13, 2015, 10:57 pm
  #2528  
 
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And, to Urbane Gent, I also want to express my thanks for your fine efforts.

Last edited by WineCountryUA; Sep 13, 2015 at 11:40 pm Reason: OT content removed
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Old Sep 13, 2015, 11:47 pm
  #2529  
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Topic Check

This is a thread about the MM suit -- discussion of the change of leadership of UA is actively being covered elsewhere (http://www.flyertalk.com/forum/unite...-chairman.html), so let's not recover that ground here.

WineCountryUA
UA coModerator
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Old May 1, 2017, 9:12 pm
  #2530  
 
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House Transportation Committee Hearings

Hello My Fellow Flyertalkers,

The removal of Dr. Dao has brought a renewed interest in Congress wanting to overhaul airline policies.

On May 1st, 2nd, 3rd, 2017, the House Transportation Committee is holding hearings on Oversight of U.S. Airline Customer Service in Washington D.C., Messrs. Oscar Munoz and Scott Kirby are in attendance.

This afternoon, the Committee asked me to prepare a letter, which I am enclosing in this thread. They were very familiar with my intended class-action lawsuit to hold United accountable with "lifetime" promises made to loyal customers over the decades.

The Committee has set up an e-mail specifically for United Airlines. Since the hearings are happening as this is being written, if anyone who was a pre-merger United Airlines Million Mile Flyer can send a quick e-mail with the subject line "United Airlines Million Mile Flyer Relief" it would be appreciated.

The following letter is enclosed, if you want to copy and paste from parts of this letter, feel free to do so. As you can see, in this letter, I make reference to a complaint made with the Department of Transportation.

Please, send your own Million Mile Flyer story to the following e-mail address. This is directly to the House Transportation Committee and specifically for United Airlines. There are a group of us who can be very powerful if we combine our voices. This is bigger than just United Airlines. The lawsuit was to serve a precedent to other companies in the travel industry - case in point is this article just published by Gary Leff on View from the Wing called "When Lifetime Status in Taken Away".

[email protected]

Dear House Transportation Committee,

I send this e-mail to the Committee in the hopes of being able to hold United Airlines accountable for promises it made to their top flyers for almost two decades. I seek remedies on behalf of myself and about ten thousand other flyers.

The Committee may be familiar with Lagen vs. United Continental Holdings Inc. In 2014, I sued United on behalf of myself and about 10,000 flyers who spent hundreds of thousands of dollars in travel and flew an actual one million miles. For years, this group was considered pre-merger United's top flyers/customers.

Long before the merger with Continental, in the 1990's, United started a new program called, "Million Miles and Beyond." United was the first airline to create this new level - once one flew an ACTUAL 1,000,000 miles, they would receive lifetime "Million Miler Flyer" status. With that status came a bunch of "lifetime" benefits. On average, it took ten years to obtain Million Mile Flyer and spending hundreds of thousands of dollars in business with United.

Other airlines came out with their version of "Million Miler" status. The lifetime benefits offered to flyers of American, Continental, US Airways, etc., was a step below United's. Additionally, the other airlines would include class of service bonus, partner airlines and other ways - for example, if you opened an American Airlines CITI credit card, the flyer would get 100,000 miles added to their million miler bank.

United had no gimmicks, they kept it simple, one had to fly an actual one million miles regardless of where one sat on the plane (what was called "BIS" miles or "Butt In Seat" miles). However, United's Million Mile Flyer "lifetime" benefits were incredible, one being guaranteed lifetime Premier Executive, second tier in the Mileage Plus Program (please see attachment). All other million miler programs gave their flyers the lowest elite level for a lifetime. United differentiated themselves by calling the status "Million Mile Flyer" as opposed to "Million Miler" because one had to fly an actual million miles.

When Continental merged with United in 2014, Jeff Smisek, the new CEO, went after this specific group, United's Million Mile Flyers, by downgrading and taking away all the promised LIFETIME benefits, even though UA flyers were constantly told nothing would change with regards to status (enclosed). He then upgraded all Continental one million milers. The issue for me was what does LIFETIME mean when a company promises "lifetime".

It went through the courts, I won, UA appealed, they won, I appealed, all the way to the 7th District Court of Appeals. One of the judges called United "fraudulent", "deceptive" and "dishonest".

A key section of the Court of Appeal wording starts on Page 7, i.e.

We close with a word about the common-sense argument that Lagen presents and our dissenting colleague emphasizes: that United must be accountable under some body of law because its representation that it was bestowing “lifetime” benefits on its Million-Mile flyers is irreconcilable....

The judge said that United should be held "...accountable under some body of law." It seemed to me the court was telling me to take it up with the DOT for help because there is no where else to take it for relief - until I came across House Transportation Committee.

United stated they can say anything, in this case "lifetime" and then not mean "lifetime". I went to the FAA/DOT on their website and lodged a complaint. My complaint was answered by UA's attorneys and not by DOT. In other words, DOT passed the complaint to UA. Sadly, the DOT did not perform its intended purpose with respect to the complaint.

United simply said, when we say lifetime, we don't mean it.

I am hopeful the Committee can be of help to myself and former Million Mile Flyers. Rather then send the Committee a bunch of snapshots and other things, I am sending one screenshot from the United website in 2007 as well as assurances from United everyone's status would not be affected with the merger. There are more screenshots for other years; they are available if the Committee requests them.

Thank you in advance.

Yours,


George Lagen

Cook County, Illinois

Last edited by UrbaneGent; May 2, 2017 at 8:52 am
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Old May 1, 2017, 9:32 pm
  #2531  
 
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Thanks for this,
I've got 2 family members who both hit 1mm before the merger and I've talked both of them into taking the time to send emails
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Old May 1, 2017, 10:47 pm
  #2532  
 
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Dear House Transportation Committee,

Like Mr. Lagen I also am a United Airlines Million Miler Flyer. Like him I depended on the promises the company gave regarding my benefits. Had I known those promises were false I never would have continued to patronize the airline and in response to their actions I have not done so since they reneged on what they agreed to.

But the underlying fault, and the solution, lies with Congress. It was Congress that took away our right to pursue legal action. So please give travelers their rights back. Change the law so that when we are cheated, lied to or ripped off we have the right to seek redress in our state courts.
sbedelman is offline  
Old May 1, 2017, 11:00 pm
  #2533  
 
Join Date: Apr 2006
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Peter Defazio is the ranking member for the Democrats. If there is anyone from his district you can email him.

Bill Shuster is the Chairman.

You can see all the members here.

https://en.wikipedia.org/wiki/United...Infrastructure

Emailing the members directly will have a much bigger impact. They sit up and listen when constituents contact them.
sbedelman is offline  
Old May 1, 2017, 11:02 pm
  #2534  
 
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Okay, I'll write the House Committee too as I was 2MM prior to the merger.

deek
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Old May 2, 2017, 8:42 am
  #2535  
 
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Originally Posted by sbedelman
Peter Defazio is the ranking member for the Democrats. If there is anyone from his district you can email him.

Bill Shuster is the Chairman.

You can see all the members here.

https://en.wikipedia.org/wiki/United...Infrastructure

Emailing the members directly will have a much bigger impact. They sit up and listen when constituents contact them.
Excellent suggestion. ^
Fredd is offline  


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