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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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• • • • •

[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
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 Jan 29, 2013, 8:07 pm
  #856  
 
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Originally Posted by UA-NYC
PQM earning/buying has nothing to do with the MM program - adding to lifetime status only comes from flown UA/UX/Copa miles
Aha. Understood. I thought they counted toward MM status. In this case, there is no difference. If such paid EQM miles did qualify toward MM status, then I think you could reasonably argue that there was a contract in place. In exchange for money, you got certain fixed benefits. All moot.
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Old Jan 31, 2013, 12:48 am
  #857  
 
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While it is great fun arguing legal issues with non-lawyers (not), naysayers here seem to think that "lifetime" means nothing. It does. You can't go around making such loose promises that customers rely on and then ignore them.

Secondly, a specific contractual term (e.g., lifetime benefits for Million Milers) overrides a general term found elsewhere ("we have the right to make changes when we want").

The case I cited stands for the basic premise that companies can be held liable for lifetime benefits, particularly in this case when there was a specific promise of lifetime benefits.
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Old Jan 31, 2013, 6:16 am
  #858  
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Originally Posted by Always Flyin
While it is great fun arguing legal issues with non-lawyers (not), naysayers here seem to think that "lifetime" means nothing. It does. You can't go around making such loose promises that customers rely on and then ignore them.

Secondly, a specific contractual term (e.g., lifetime benefits for Million Milers) overrides a general term found elsewhere ("we have the right to make changes when we want").

The case I cited stands for the basic premise that companies can be held liable for lifetime benefits, particularly in this case when there was a specific promise of lifetime benefits.
Are people still getting lifetime benefits on UA? Yes they are. Just because the MM's do not like the benefits the get does not mean lifetime benefits do not exist.

There is no specific term guaranteeing specific benefits.
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Old Jan 31, 2013, 6:20 am
  #859  
 
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Originally Posted by UA-NYC
PQM earning/buying has nothing to do with the MM program - adding to lifetime status only comes from flown UA/UX/Copa miles
If you bought EQM/PQM before 1/1/12 they are included in your lifetime mileage balance
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Old Jan 31, 2013, 7:43 am
  #860  
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Originally Posted by TommyC80
If you bought EQM/PQM before 1/1/12 they are included in your lifetime mileage balance
they should be. the PMCO method was that all EQMs counted.
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Old Jan 31, 2013, 8:26 am
  #861  
 
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While the debate on this thread is interesting, is there any actual movement on the lawsuit?
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Old Jan 31, 2013, 8:49 am
  #862  
 
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Originally Posted by colpuck
Are people still getting lifetime benefits on UA? Yes they are. Just because the MM's do not like the benefits the get does not mean lifetime benefits do not exist.

There is no specific term guaranteeing specific benefits.
Hogwash. Many, many times in this and the other MM thread people have posted the exact direct communication(s) from United that say not only that lifetime benefits will be granted, but what they will be - including 2 RPUs annually, 3 GPUs at the time of crossing, and a specific listing of and emphasis on the *benefits* associated with 1P, not just "50K level for life". Just because you may not like or believe what those communications say does not mean the communications don't exist.
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Old Jan 31, 2013, 9:08 am
  #863  
 
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Originally Posted by u2vox
Hogwash. Many, many times in this and the other MM thread people have posted the exact direct communication(s) from United that say not only that lifetime benefits will be granted, but what they will be - including 2 RPUs annually, 3 GPUs at the time of crossing, and a specific listing of and emphasis on the *benefits* associated with 1P, not just "50K level for life". Just because you may not like or believe what those communications say does not mean the communications don't exist.
And just because you don't like the updated benefits doesn't mean you're getting no benefits. Hogwash yourself.
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Old Jan 31, 2013, 9:09 am
  #864  
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Originally Posted by u2vox
Hogwash. Many, many times in this and the other MM thread people have posted the exact direct communication(s) from United that say not only that lifetime benefits will be granted, but what they will be - including 2 RPUs annually, 3 GPUs at the time of crossing, and a specific listing of and emphasis on the *benefits* associated with 1P, not just "50K level for life". Just because you may not like or believe what those communications say does not mean the communications don't exist.
See the problem with that argument is that UA has continually tweeked the the MP program since its inception. So since the P here has been a member since 1993, he knew that the program could change because it has changed. So, he knew he couldn't rely on any statement of specific benefits for lifetime.

Also, the method in which is was communicated was outside of the official methods of communication, so it wasn't to be relied on anyways.

Originally Posted by tods27
While the debate on this thread is interesting, is there any actual movement on the lawsuit?
Nope. Still waiting on the judge to rule on the 12(b) motion to dismiss.
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Old Jan 31, 2013, 9:17 am
  #865  
 
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Originally Posted by bmvaughn
And just because you don't like the updated benefits doesn't mean you're getting no benefits. Hogwash yourself.
Not the point - who said we're not getting benefits still? Of course I don't like them, because they are categorically not anywhere near the realm of what was promised, exact or otherwise. Specific benefits were communicated and promised, for life, then broken. Not sure how that is debatable. It's written plain as day.
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Old Jan 31, 2013, 9:48 am
  #866  
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Originally Posted by u2vox
Not the point - who said we're not getting benefits still? Of course I don't like them, because they are categorically not anywhere near the realm of what was promised, exact or otherwise. Specific benefits were communicated and promised, for life, then broken. Not sure how that is debatable. It's written plain as day.
Did UA go back on the FAQ they posted online, yes. Is it legally actionable, probably not so much.
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Old Jan 31, 2013, 10:27 am
  #867  
 
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Originally Posted by WineCountryUA
new for PUMA folks, had existed for PMCO.
So you could always (or at least for some time) outright buy highest
status available @ pm co ?

I thought that was kinda exclusive to us (within *a) ...
I guess I stand corrected.
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Old Jan 31, 2013, 10:32 am
  #868  
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Originally Posted by hamburgoflyer
So you could always (or at least for some time) outright buy highest
status available @ pm co ?

I thought that was kinda exclusive to us (within *a) ...
I guess I stand corrected.
Yes if you were willing to pay between $100,000 and $170,000. people on this forum consistently overestimate the amount of EQMS issued through the presidental plus card and through the boosters.
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Old Jan 31, 2013, 10:42 am
  #869  
 
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Originally Posted by colpuck
they should be. the PMCO method was that all EQMs counted.
so it is fair to say MM status could be also bought @ pmco...
What were the benefits promised to MM's there ?
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Old Jan 31, 2013, 10:57 am
  #870  
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Originally Posted by hamburgoflyer
so it is fair to say MM status could be also bought @ pmco...
What were the benefits promised to MM's there ?
No, it's not fair to say it could be bought. It's not realistic. That being said the CO program looked a lot like the current program but the benefits were lower, 1MM was only silver under the PMCO program and there were no gifts for attaining MM status like there are now.

Personally I feel that the loss of all EQMs counting is the biggest hit to the program, especially when UA gets paid to issue them a lot of the time.
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