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

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

Old Jan 31, 2013, 10:13 pm
  #916  
 
Join Date: Aug 2006
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Originally Posted by tom911

To me the biggest item on the table is still the 100% mileage bonus. That was mentioned in the news article as one of the lost perks and I'd love to see that restored. That was the primary benefit I was looking for as I flew those 1,000,000 miles on UA metal over the years.
Indeed. ^
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Old Jan 31, 2013, 10:14 pm
  #917  
 
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The text of the order follows. I have the PDF is anyone has a site on which to post it:

Code:
MEMORANDUM OPINION AND ORDER
Before the Court is Defendants’ Motion to Dismiss Plaintiff’s Amended Complaint. For the reasons stated herein, the Motion is granted in part and denied in part. I. FACTUAL BACKGROUND Plaintiff George Lagen (hereinafter, “Lagen” or “Plaintiff”), on behalf of himself and others similarly situated filed a Complaint against Defendants United Continental Holdings, Inc. and United Airlines (collectively, “United” or “Defendants”) alleging breach of contract, breach of the covenant of good faith and fair dealing, and unjust enrichment. In the Complaint, Plaintiff claims that when United Airlines merged with Continental Airlines, United Airlines breached contractual obligations to its Mileage Plus customers by revising the “lifetime benefits” the customers receive. Pl.’s Amend. Compl. at 2 (emphasis in original). Plaintiff’s proposed class seeks to include those Mileage Plus customers who achieved “Million Miler status.” Id. at 5. Plaintiff explains that attaining such status required a customer to actually purchase (and presumably travel) one million miles on United Airlines. After a member attained the Million Miler status, Plaintiff claims that each member was entitled to lifetime benefits of: a. A one-time award of three system-wide upgrades; b. Two free regional upgrades every year; c. A 100% bonus on the miles the customer flies every year; and d. Lifetime Premier Executive status in United’s Mileage Plus program, providing extra benefits and priorities such as booking availability, pre-boarding advantages, upgrade possibilities, and seating priority. Id. Plaintiff contends that shortly after United Airlines merged with Continental Airlines it announced a new, post-merger frequent flyer program which resulted in a significant retroactive demotion of benefits to Million Milers. Specifically, the Complaint alleges that after the merger, Million Milers were no longer guaranteed their Lifetime Premier Executive status, and instead became members of a Gold status group (a third tiered group as opposed to a top tiered group) who received fewer benefits than they did prior to the merger. Plaintiff also claims that after the merger, Million Milers no longer received 100% bonus on the miles they flew with United and instead only received a 50% bonus. Plaintiff alleges that the reduction in benefits to the Million Milers was a breach of contract. Plaintiff claims that United received substantial compensation and consideration from Million Milers in exchange for benefits which United retroactively ceased to provide Plaintiff and Plaintiff’s proposed class. Based on these facts, Plaintiff also alleges that United breached the covenant of good faith and fair dealing, and was unjustly enriched. On July 12, 2012, Defendants filed a Motion to Dismiss Plaintiff’s Complaint pursuant to Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6). In their Motion, Defendants claim that Plaintiff fails to establish standing and fails to state a claim. Pursuant to an Executive Committee Order, this case was transferred to this Court on December 6, 2012, in light of the Honorable Judge Blanche Manning’s retirement. II. LEGAL STANDARD Federal Rule of Civil Procedure 12(b)(1) allows the Court to dismiss a case for lack of jurisdiction over the subject matter. FED. R. CIV. P. 12(b)(1). On a 12(b)(1) motion, the Plaintiff bears the burden of establishing subject matter jurisdiction. In ruling on a motion to dismiss under 12(b)(1), the Court accepts “as true all facts alleged in the well pleaded complaint and draws all reasonable inferences in favor of the plaintiff.” Scanlan v. Eisenberg, 669 F.3d 838, 841 (7th Cir. 2012). Similarly, when evaluating dismissal under Rule 12(b)(6), the Court takes all well pleaded allegations of the complaint as true and views them in the light most favorable to the plaintiff. Appert v. Morgan Stanley Dean Witter, Inc., 673 F.3d 609, 622 (7th Cir. 2012). Under Rule 12(b)(6), a defendant seeks to dismiss if the plaintiff “fail[s] to state a claim upon which relief can be granted.” Stayart v. Yahoo! Inc., 623 F.3d 436, 438 (7th Cir. 2010). To satisfy the notice-pleading standard of Federal Rule of Civil Procedure 8, a complaint must provide a “short and plain statement of the claim showing that the pleader is entitled to relief,” and must provide the defendant with fair notice of the claim and its basis. Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007). A claim has facial plausibility and survives dismissal when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged. Appert, 673 F.3d at 622. III. ANALYSIS A. Motion to Dismiss Based on 12(b)(1) Defendants argue dismissal is warranted pursuant to 12 (b)(1) because Plaintiff lacks standing. Specifically, Defendants argue that Plaintiff failed to allege that he has sustained an injury-in- fact. Plaintiff disputes this citing various paragraphs in his Complaint. When a party challenges standing they are in effect challenging the court’s subject-matter jurisdiction. Johnson v. Merrill Lynch, Pierce, Fenner, & Smith Inc., No. 12-CV-2545, 2012 WL 5989345, at *3 (N.D. Ill. Nov. 28, 2012). In order to establish standing, a plaintiff must show a violation of a concrete, particular legally protected interest, a causal relationship between the defendant’s conduct and the plaintiff’s injury, and the ability for the court to redress the plaintiff’s injury if the court finds in the plaintiff’s favor. Lujan v. Defenders of Wildlife, 504 U.S. 555, 559 (1992). Defendants admit that Plaintiff has alleged that he has lost certain benefits as a result of the new Mileage Plus program. However, Defendants claim that Plaintiff fails to establish a “concrete and particularized” injury because Plaintiff fails to state that he has flown or will fly on United in the future or that he has actually been denied any of the lost benefits. Id. Defendants equate the Plaintiff’s claimed injury with the injury the plaintiffs in Lujan v. Defenders of Wildlife alleged, which the Supreme Court held to be insufficient for the purposes of Article III standing. See, Lujan, 504 U.S. at 567. The Court disagrees with Defendants’ analogy. In Lujan, a plaintiff filed a complaint challenging a rule promulgated by the Secretary of Interior which interpreted the Endangered Species Act of 1973. Id. at 558. The plaintiff in Lujan claimed that his injury was the increase in rate of extinction to endangered species. Id. at 562. In finding this injury insufficient for the purposes of Article III standing, the Supreme Court held that while the desire to observe or use endangered species “even for purely esthetic purposes, is undeniably a cognizable interest for the purpose of standing . . . the injury in fact test requires that the party seeking review must be himself among the injured.” Id. at 563. Here, Plaintiff’s Complaint states that prior to the merger, he enjoyed the benefits as a Million Miler. He further claims that he “like thousands of others, has seen his bargained for benefits unlawfully stripped away.” Pl.’s Amend. Comp. at 2. The Court finds this allegation combined with the others Plaintiff references in his response brief distinguishable from the injury alleged in Lujan. As further support, the Court finds Greenburg v. United Airlines, 563 N.E.2d 1031 (Ill. App. Ct. 1990), instructive. In Greenburg, two plaintiffs sued United Airlines claiming that changes to the company’s Mileage Plus frequent flier program breached a prior contract between the parties. Id. at 1034. In affirming a trial court’s dismissal of the plaintiffs’ complaint, the Illinois Appellate Court found that the plaintiffs failed to allege an injury. The complaint in Greenburg alleged that plaintiffs suffered the injury of not being able to use or receive benefits from their previously accrued miles. In finding this claim insufficient, the Appellate Court noted that the plaintiffs failed to allege “an intention to use mileage after 1994” which was the time limit United had set under the rule change. Id. at 1035. In fact, in Greenburg, the plaintiffs admitted that they had redeemed accrued miles since the change in the Mileage Plus Program became effective. Thus, the court determined that plaintiff failed to allege “a present actual loss” and instead based their claims upon “vested rights [that] would be terminated by 1994.” Id. at 1036 (emphasis in original). The Court finds Greenburg factually similar to the case at bar, but in the same breath finds the Plaintiff’s allegations with respect to his injury different from those asserted in Greenburg. Here, it is undeniable that Plaintiff claims he has and continues to suffer an injury based upon his lost benefits. Specifically, Plaintiff contends that Million Milers “were guaranteed Lifetime Premier Executive status for life” and under the new program are denied such benefits. Pl.’s Amend. Compl. at 6. Plaintiff does not base his claims on the fact that his benefits are going to be terminated at some future date. Plaintiff claims the termination of benefits has already occurred. Taking these allegations as true, the Court finds that Plaintiff sets forth an Article III injury sufficiently. As such, the Court denies Defendants Motion to Dismiss Pursuant to Rule 12(b)(1). B. Motion to Dismiss Based Upon 12(b)(6) Defendants argue in the alternative that dismissal is warranted because Plaintiff’s Complaint fails to state a claim. Defendants argue that the Court should dismiss Plaintiff’s breach of contract, breach of covenant of good faith and fair dealing and unjust enrichment claims. 1. Count I: Breach of Contract Attached to their Motion to Dismiss, Defendants provide what they contend is the contract Plaintiff claims Defendants breached. Defendants assert that the Court is permitted to consider this contract without transforming their motion to one for summary judgment since the alleged contract is mentioned in Plaintiff’s complaint and central to Plaintiff’s claims. Defendants also state that a plain reading of the contract illustrates that Defendants are not in breach. Plaintiff disputes these contentions, arguing that the Court should exclude from its consideration the aforementioned documents, and that those documents are not the contract pertinent to Plaintiff’s claims. As a preliminary matter, the Court agrees with Defendants with respect to its ability to consider the document which Defendants argue is the contract which Plaintiff claimed they breached. The Court recognizes that as a general rule, when reviewing a motion to dismiss pursuant to Rule 12(b)(6), the Court should only consider the pleadings. However, Rule 10(c) instructs, “[a] copy of any written instrument which is an exhibit to a pleading is a part thereof for all purposes.” FED. R. CIV. P. 10(c). Moreover, the Seventh Circuit has held that “[d]ocuments attached to a motion to dismiss are considered part of the pleadings if they are referred to in the plaintiff’s complaint and are central to his claim.” Wright v. Assoc. Ins. Cos. Inc., 29 F.3d 1244, 1248 (7th Cir. 1994). Indeed, the Seventh Circuit has reasoned such a rule is intended to apply for cases like this which involve the interpretation of a contract. Levenstein v. Salafsky, 164 F.3d 345, 347 (7th Cir. 1998). The Court’s consideration of such documents (ECF 10-1, Ex. 1 & Ex. 2), does not however, mean that the Court is required to adopt Defendant’s allegations regarding the effect of such documents – namely, that exhibits 1 and 2 are the contract which Plaintiff claims Defendants breached. See Rosenblum v. Travelbyus.com Ltd., 299 F.3d 657, 661 (7th Cir. 2002) (stating that a court can “form its own conclusion as to the proper construction and meaning to be given” to such documents). In fact, the Court disagrees with Defendants’ contentions. The Court does not deny that exhibits 1 and 2 appear to be the terms and conditions of the Mileage Plus program United had in effect at the time Plaintiff was a member. However, after examining the exhibits, the Court does not find any mention of Million Miler membership or the benefits a member receives after flying 1,000,000 miles. ECF No. 10-1, Ex. 1 & Ex. 2. While Plaintiff’s Complaint states explicitly that the Million Miler Program was part of the Mileage Plus Program, Plaintiff and his proposed class are not mere Mileage Plus members. Instead, the Complaint is clear that Plaintiff and his proposed class are Million Miler Program members. Therefore, 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. In his response opposing Defendant’s Motion, Plaintiff argues that exhibits 1 and 2 are not the contract Plaintiff seeks to enforce and points out that these documents do not contain the terms Plaintiff alleges Defendants breached. Plaintiff lists the denial of lifetime benefits which Defendants allegedly promised him in exchange for his purchase of airline tickets as the breach. Again, these benefits do not appear in exhibits 1 and 2. Thus, the Court rejects Defendants’ argument that exhibit 1 and 2 illustrate that Plaintiff cannot establish breach. In addition to finding that Plaintiff has alleged a breach, the Court also finds Plaintiff has pled sufficiently the other elements required for a breach of contract claim – namely, the existence of a valid contract, substantial performance by the plaintiff and resulting damages. See Reger Development LLC v. National City Bank, 592 F.3d 759, 764 (7th Cir. 2010); see also Petri v. Gatlin, 997 F.Supp. 956, 965 (N.D. Ill. 1997) (denying a motion to dismiss a breach of contract claim because the plaintiff generally alleged the existence of a contract, a defendant’s breach, and resulting damages). Of course, as this case proceeds, it will be Plaintiff’s burden to prove (not plead) that a contract exists between Plaintiff’s proposed Million Miler class and United that differs from the Mileage Plus contract United argues is the contract Plaintiff seeks to enforce. In order to make this showing, Plaintiff will need to provide the Court more than mere allegations. However, given this is only the pleading stage, the Court finds Plaintiff’s allegations sufficient to survive dismissal. See Tibor Mach. Products, Inc. v. Freudenberg-NOK General Partnership, 976 F.Supp. 1006, 1011 (N.D. Ill. 1997) (“. . . at the pleading stage, Tibor [the plaintiff] need only allege rather than prove - the existence of a valid contract.”). Accordingly, the Court denies Defendants’ Motion to Dismiss Plaintiff’s breach of contract claim. 2. Count II: Breach of Covenant of Good Faith and Fair Dealing Defendants also move for dismissal of Count II of Plaintiff’s Complaint, which alleges that Defendants are liable for their breach of the covenant of good faith and fair dealing. Defendants argue that dismissal is appropriate because Illinois courts do not recognize an independent cause of action for breach of the covenant of good faith and fair dealing and the Airline Deregulation Act preempts such claims. The duty of good faith and fair dealing is an interpretative tool that assists the Court in interpreting the terms of the contract and the intent of the parties. See Cromeens, Holloman, Sibert, Inc. v. AB Volvo, 349 F.3d 376, 395 (7th Cir. 2003). While under Illinois law every contract contains the implied covenant of good faith and fair dealing, it is “not generally recognized as an independent source of duties giving rise to a cause of action.” Voyles v. Sandia Mortg. Corp., 751 N.E.2d 1126, 1131 (Ill. 2001); see also, APS Sports Collectibles, Inc. v. Sports Time, Inc., 299 F.3d 624, 628 (7th Cir. 2002). As an aside, the Court finds Illinois law applicable in this case as neither party has raised a conflict of law issue and Plaintiff had every opportunity to do so in his response. See RLI Insurance Co. v. Conseco, Inc., 543 F.3d 384, 390 (7th Cir. 2008) (instructing federal courts to apply the law of the state in which they sit when neither party raises a conflict of law issue in a diversity case). Thus, the Court finds Count II of Plaintiff’s Complaint fails to state a claim and dismisses it with prejudice. 3. Count III: Unjust Enrichment Defendants argue that Plaintiff’s unjust enrichment claim must be dismissed because the Airline Deregulation Act preempts such a claim and because Illinois law does not permit a plaintiff to bring a claim for both breach of contract and unjust enrichment. The Airline Deregulation Act provides that “a State . . . may not enact or enforce a law, regulation, or other provision having the force and effect of law related to price, route, or service of an air carrier that may provide air transportation under this subpart.” 49 U.S.C. § 41713 (b)(1). The Airline Deregulation Act incorporated this preemption provision so “[s]tates would not undo federal deregulation with regulation of their own.” Travel All Over the World, Inc. v. Kingdom of Saudi Arabia, 73 F.3d 1423, 1430 (7th Cir. 1996). In determining whether the preemption provision applies to a state law claim, the Seventh Circuit determined that the proper inquiry is “. . . whether the claims at issue either expressly refer to the airline’s services . . . or would have a significant economic effect on the airlines services.” Id. at 1434. Relying on this instruction, the district court in Levitt v. Southwest Airlines Company, 846 F.Supp.2d 956, 959-60 (N.D. Ill. 2012), found a plaintiff’s unjust enrichment claim based on unredeemed drink vouchers preempted. The Court finds Levitt analogous with the instant case and accordingly dismisses Plaintiff’s unjust enrichment claim. See also United Airlines, Inc. v. Mesa Airlines, Inc., 219 F.3d 605, 607 (7th Cir. 2000) (finding state common law claims count as an “other provision having the force and effect of law” for the purposes of the preemption provision of the Airline Deregulation Act.). Count IV of Plaintiff’s Complaint purports to state a claim for specific performance. In their Motion to Dismiss, Defendants argue that this claim must be dismissed because specific performance is not an independent cause of action. Plaintiff responds, clarifying that Count IV is not intended to be an independent cause of action, but instead is only an equitable remedy sought for Plaintiff’s breach of contract claim. The Court accepts Plaintiff’s explanation and finds Plaintiff’s request for specific performance as a form of relief permissible. However, the Court points out that Defendants are correct in their contention that specific performance is not an independent cause of action, and thus construes Plaintiff’s Amended Complaint to consist of only three causes of action, two of which the Court is dismissing, leaving only Plaintiff’s breach of contract claim. IV. CONCLUSION For the reasons stated herein the Court denies Defendants’ Motion to Dismiss Count I; and grants Defendants’ Motion to Dismiss Counts II and III. IT IS SO ORDERED.

Last edited by FlyinHawaiian; Feb 1, 2013 at 5:39 am Reason: code tag used to shorten post
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Old Jan 31, 2013, 10:17 pm
  #918  
 
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Originally Posted by tom911
Will he be able to request e-mails between UA executives regarding the million miler program, and how they came about deciding to change it, or minutes of executive meetings where that topic could have been discussed? How about documentation on changes to the UA web site in relation to 1M benefits? Are these all fair game in discovery?
Yes; however, once litigation was threatened or pending, communications between United and its attorneys, including those in-house, are privileged. The facts leading up to the changes are fair game.

Originally Posted by colpuck
You see there is thing called the burden of proof. It's like a for real standard in court. (those places where legal decisions are made). Now the plaintiff has to prove his case. In this case that a flippant statement on a website overrides specific contractual clauses.
Again, no cite to any legal authority. So your opinion is worth exactly that much.

Didn't you learn that in law school? It's not what YOU think, it's what the law and precedent holds. Take a look at Contracts 101.

Last edited by FlyinHawaiian; Feb 1, 2013 at 5:39 am Reason: multi-quote
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Old Jan 31, 2013, 10:23 pm
  #919  
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Posts: 31,849
Originally Posted by Fredd
I and others suggested to UA that they keep it simple and tidy and grandfather us to Platinum. We would still be one category from the top, we would get token annual UGs, and we would get a 75% mileage bonus, rather than the 100% bonus. Yes, it still would have been a lessening of benefits but I would have called it a good-faith effort by UA.
Well, that would have got me 8,750 miles for a transcon instead of 10,000, so if the fare was right I might book some tickets, and it would bring us back up to the tier below 1K. 7,500 miles with the current 50% bonus just didn't work for me and I've been redeeming miles since the change (flew PS F last month on miles). Hard to accept 7,500 at UA when I can get 10,000 at a competitor for the same trip.
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Old Jan 31, 2013, 11:24 pm
  #920  
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Thank you George Lagen, carrier of the torch for all PMUA MMers! Tonight I raise a glass in a toast to you George Lagen!

Thanks also to all the licensed and practicing litigators who have participated in this thread.
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Old Jan 31, 2013, 11:31 pm
  #921  
 
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Originally Posted by Pat89339
Thank you George Lagen, carrier of the torch for all PMUA MMers! Tonight I raise a glass in a toast to you George Lagen!

Thanks also to all the licensed and practicing litigators who have participated in this thread.

^
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Old Jan 31, 2013, 11:51 pm
  #922  
 
Join Date: Jul 2004
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Damages?

Think about it:

UA now has a mess in their hands.

DAMAGES

You have a group who, had they been given the LIFETIME benefits they were promised (Platinum), they would have received more mileage for their trips (damages?), less paying of changes (damages?), etc. Also, how about upgrades? How many PMUA MMilers lost upgrades because they were not at the tier status they were supposed to be at? Are these all clear damages?

PUNITIVE DAMAGES (???)

How about the shady business of it all? Would a court award damages because UA blatantly lied, removed promises made from their website, etc.? If it's found during discovery that UA purposely did this? Or they discriminated against the PMUA MMilers and while upgrading the PMCO MM and Infinite Elites? Is that called "punitive damages"?

ARROGANCE?

The arrogance of Smisek is biting him in the arse. We (all elites) are "over-entitled" and to him and his team, with all our promised perks, that we each pay for in the price of a ticket, a nuisance. This has to be an embarrassment to them. It has to be. Will the "over-entitled" comment come back to haunt them as well?

IF JURY WERE TO SIDE WITH MM...

If this goes to a jury and they side with Plaintiff, does this also mean PMUA MM LIFETIME benefits promised, as long as UA is in business, has to be kept? Assuming Plaintiff is fighting for what he states, restoration of promised LIFETIME benefits.

THRESHOLD PMUA MM

Also what about those who were gunning for 1MM, who were at 800,000 or 995,000 BIS miles? How about 250,000 miles? They were promised LIFETIME benefits as well. Or myself, at 1.6 running towards 2MM?

RESOLUTION?

It's a cluster mess -

The least messy way is to give ALL PMUA MPlus Members a choice between the PMUA MM LIFETIME benefits promised to them OR sticking with the new merged plan.

I would happily have my MM account go back to actual miles flown (BIS) so I could go after the benefits that were always promised to me. I would bet there are many more who would like that too. Give us another name just like they did the Infinite Elites like True Million Mile Flyers

THE FUTURE

I do not trust the new UA at all. If we get "grandfathered" and accept that, what keeps them from changing it again or adding a 125,000 threshold?

I bet they are going to completely revamp the MMiler program after all this is over and remove the word LIFETIME completely. I don't think they would drop the MM program bc it's not competitive with other airlines, but they may.

But a true embarrassment for UA, they will go down in the history books as the one who set precedent for what "lifetime" really means. Perhaps a case study of NOT what to do to your customers.

I still can't believe it, they promised LIFETIME benefits for decades, year after year and after having benefitted from this, went and downgraded the benefits and called it "new and improved". It's just so awful in so many ways. Bad business, plain and simple. Just so happy to hear the Courts response no matter what happens next, just thinking out loud and sharing (repeat, thinking out loud, I understand many things still have to happen) - regardless, history has been made!

Time will tell...

UG

Last edited by UrbaneGent; Feb 1, 2013 at 12:07 am
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Old Feb 1, 2013, 12:32 am
  #923  
 
Join Date: Jun 2003
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Posts: 594
This:

Originally Posted by UrbaneGent
THRESHOLD PMUA MM

Also what about those who were gunning for 1MM, who were at 800,000 or 995,000 BIS miles? How about 250,000 miles? They were promised LIFETIME benefits as well. Or myself, at 1.6 running towards 2MM?

RESOLUTION?

It's a cluster mess -

The least messy way is to give ALL PMUA MPlus Members a choice between the PMUA MM LIFETIME benefits promised to them OR sticking with the new merged plan.

I would happily have my MM account go back to actual miles flown (BIS) so I could go after the benefits that were always promised to me. I would bet there are many more who would like that too. Give us another name just like they did the Infinite Elites like True Million Mile Flyers
Thank you for bringing this up again, UG. I know that the focus here is largely on PM MM flyers, but the truth is that those of us who were close relied on those statements for YEARS and made decisions along the lines of higher prices, poorer schedules, poorer service, etc., just to keep adding towards that ongoing goal, based on ongoing communications and precedent from UA. UA gained from us because of this. How many times I would have NOT flown UA but instead flown SQ, NZ, NH, LH, etc.. Instead, I remained loyal for 12 years to get to my 800K PM BIS miles. I'm hopeful but also skeptical that whatever ends up happening will take this into account.

I would be happy to go back to where I was, put in my 1-2 more years and get to a true 1M BIS on UA to get to the previous set of benefits. And once I hit them, I would continue to fly UA. Instead, they've lost essentially all of my business in the last 10 months.
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Old Feb 1, 2013, 1:20 am
  #924  
 
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Originally Posted by u2vox
This:
I would be happy to go back to where I was, put in my 1-2 more years and get to a true 1M BIS on UA to get to the previous set of benefits. And once I hit them, I would continue to fly UA. Instead, they've lost essentially all of my business in the last 10 months.
Yes, this is a great outcome for MMers, justice has been served and it has been very impressive to me trying to follow the legal arguments from our pro bono FT lawyers. I also would have been happy to put in the extra 12 months BIS flying UA to reach 2MM without the bump up if the pmUA benefits had remained. So that raises the question in my mind of what likely impact (if any) this decision will have on the other tiers of the MM program as 2MM was stripped and currently there is little benefit or incentive left with 2MM.
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Old Feb 1, 2013, 1:40 am
  #925  
 
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Originally Posted by UrbaneGent
Think about it:

UA now has a mess in their hands.
You bring up some interesting issues.

DAMAGES

You have a group who, had they been given the LIFETIME benefits they were promised (Platinum), they would have received more mileage for their trips (damages?), less paying of changes (damages?), etc. Also, how about upgrades? How many PMUA MMilers lost upgrades because they were not at the tier status they were supposed to be at? Are these all clear damages?
Damages must be calculable on some level and cannot be speculative.

If this case gets past class certification (shouldn't be difficult), the real issue will be whether UA decides to settle or file a motion for summary judgment and then settle if they lose that. It's a strategy call on UA's part and really can't be predicted accurately.

As far as damages, it is rather easy to award the 2 regional upgrades a year.

The problem is that while 2 regional upgrades were promised, there was no "lifetime" promise of specific Gold status benefits. legally, that is a far weaker case, unfortunately.

PUNITIVE DAMAGES (???)

How about the shady business of it all? Would a court award damages because UA blatantly lied, removed promises made from their website, etc.? If it's found during discovery that UA purposely did this? Or they discriminated against the PMUA MMilers and while upgrading the PMCO MM and Infinite Elites? Is that called "punitive damages"?
No. Punitive damages are generally not recoverable for breach of contract, even bad faith breach of contract (at least outside the insurer/insured relationship).

ARROGANCE?

The arrogance of Smisek is biting him in the arse. We (all elites) are "over-entitled" and to him and his team, with all our promised perks, that we each pay for in the price of a ticket, a nuisance. This has to be an embarrassment to them. It has to be. Will the "over-entitled" comment come back to haunt them as well?
Quite, but that is not a legal claim. However, if the case were to go to a jury, the jury could hit UA harder with damages than it otherwise would have if they are angered by UA's arrogance. But this case will never end-up in front of a jury.

IF JURY WERE TO SIDE WITH MM...

If this goes to a jury and they side with Plaintiff, does this also mean PMUA MM LIFETIME benefits promised, as long as UA is in business, has to be kept? Assuming Plaintiff is fighting for what he states, restoration of promised LIFETIME benefits.
Yes, but I suspect that will be the result of a settlement anyway. That is the whole goal of the lawsuit, after all.

THRESHOLD PMUA MM

Also what about those who were gunning for 1MM, who were at 800,000 or 995,000 BIS miles? How about 250,000 miles? They were promised LIFETIME benefits as well. Or myself, at 1.6 running towards 2MM?
While those who were not pre-merger UA million milers won't like this, I suspect the court will determine that such passengers were not fully vested in the program, i.e., they had not earned million miler status at the time of the imposition of the new program, and will therefore be stuck with the new program because UA had the right to change the program at will (until you earned MM, then you were vested in what they offered at that time).

That issue might very well be decided at the class certification stage, i.e., the court will simply decide they are not part of the million miler class.

So what UA may do is wait for that class certification decision and, if the size of the class is significantly reduced, offer to settle with the relatively small remaining class members.

[Don't shoot the messenger--I don't make the law.]

RESOLUTION?

It's a cluster mess -

The least messy way is to give ALL PMUA MPlus Members a choice between the PMUA MM LIFETIME benefits promised to them OR sticking with the new merged plan.

I would happily have my MM account go back to actual miles flown (BIS) so I could go after the benefits that were always promised to me. I would bet there are many more who would like that too. Give us another name just like they did the Infinite Elites like True Million Mile Flyers
That is what I suspect will happen.

THE FUTURE

I do not trust the new UA at all. If we get "grandfathered" and accept that, what keeps them from changing it again or adding a 125,000 threshold?

I bet they are going to completely revamp the MMiler program after all this is over and remove the word LIFETIME completely. I don't think they would drop the MM program bc it's not competitive with other airlines, but they may.

But a true embarrassment for UA, they will go down in the history books as the one who set precedent for what "lifetime" really means. Perhaps a case study of NOT what to do to your customers.

I still can't believe it, they promised LIFETIME benefits for decades, year after year and after having benefitted from this, went and downgraded the benefits and called it "new and improved". It's just so awful in so many ways. Bad business, plain and simple. Just so happy to hear the Courts response no matter what happens next, just thinking out loud and sharing (repeat, thinking out loud, I understand many things still have to happen) - regardless, history has been made!

Time will tell...

UG
I certainly have no trust in UA. I remember when 2 first class tickets to Australia were 180,000 miles for both. With few exceptions, all UA has done is reduce the value of the program over the years. I don't expect that to change.
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Old Feb 1, 2013, 2:00 am
  #926  
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It's reading posts, and seeing lawsuits like this, that make me, as someone who wants to fly and travel more, afraid of becoming loyal to UA. I think once my UA MP Explorer card comes up for renewal I won't renew it unless I can get the fee waived, and will cancel it once I can't. AA is looking really good, pending a US merger.
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Old Feb 1, 2013, 2:04 am
  #927  
Ari
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While this opinion is certainly a blow to UA as far as the legal case goes, the case is far from won. The theory of a contract separate and apart from the MP T&C might be tough to prove.

UA should just do right by legacy MMers and moot the case now while they still can.
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Old Feb 1, 2013, 2:16 am
  #928  
 
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Originally Posted by Ari
While this opinion is certainly a blow to UA as far as the legal case goes, the case is far from won. The theory of a contract separate and apart from the MP T&C might be tough to prove.

UA should just do right by legacy MMers and moot the case now while they still can.
I agree. I'm sure there will be those who would argue that United "caving" at this point would open the door for more lawsuits. But really who cares? If United played this right it actually is just the sort of PR capitulation they need at this point in time. And the cost is minimal. Short of announcing some widespread customer service initiative there are not a lot of other low cost/high impact opportunities out there for United to rebrand as a customer-friendly airline.
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Old Feb 1, 2013, 2:21 am
  #929  
 
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Originally Posted by Ari
The theory of a contract separate and apart from the MP T&C might be tough to prove.
That is not the theory. While I am not litigating the case, my understanding is that the argument is that the general terms of the terms and conditions apply, except as modified by the specific promise of certain lifetime benefits to million milers.

It is not two contracts. You are just piecing the contract terms together from different sources.

UA should just do right by legacy MMers and moot the case now while they still can.
That is not in UA's mindset. They see Million Milers as a bunch of whiners who should be happy with whatever UA decides to give them.

There is also the issue of those who had not yet quite made it to Million Miler.
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Old Feb 1, 2013, 5:03 am
  #930  
 
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As far as damages, it is rather easy to award the 2 regional upgrades a year.
Am I being really stupid here, or could UA just award these and then reduce R/RN buckets by the percentage of additional RPUs and then grant them by revenue status rather than legacy status?

This would mean the legal wrangling is just to protect the contract integrity, there is no financial risk whatsoever.
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