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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 Feb 1, 2013, 2:55 pm
  #976  
 
Join Date: Jun 2005
Posts: 4,645
Wow. This thread is huge. I've only scanned it from time to time, and don't have much interest in the intense armchair lawyering that's going on. I would, however, like to propose a brief detour to consider a question that I don't think has been asked here.

Why did UA strip away the promised benefits?

And, why are they fighting so hard in court to prevail?

This is what I just don't get.

One of the main things they did was to strip away the promised RPUs.

But, RPUs don't cost them anything. And, in the current environment, they are nearly worthless anyway.

They won't allow an RPU to clear unless they've tried everything possible to sell every last seat and, then, they'll prioritize on fare class, then on status.

So, the only way a MM who doesn't otherwise have status will have a chance to use the RPU is when nobody bought the seat with cash, nobody bought the seat with miles, nobody upgraded into the seat with miles and cash, nobody with higher status or on a higher fare upgraded into it, and, then, after nobody on the entire flight chose to pay for it, at an ever declining price, despite receiving offers at time of booking, potentially more offers by email, more offers that keep changing (declining) in value on the web site over time, and then, finally, yet another offer at time of check-in.

Only after ALL OF THIS will the MM with no status on a low fare even have the chance to use his or her RPU. And, by then, it costs nothing to UA, because that seat is otherwise empty. It means they couldn't even pawn off the seat to a kettle for $29.

So, with something so worthless anyway, that costs them nothing, why did they pull it, why did they alienate and anger this community, and why are they fighting so hard to defend the decision?
FlyWorld is offline  
Old Feb 1, 2013, 3:01 pm
  #977  
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Originally Posted by mitchmu
Wow. This thread is huge. I've only scanned it from time to time, and don't have much interest in the intense armchair lawyering that's going on. I would, however, like to propose a brief detour to consider a question that I don't think has been asked here.

Why did UA strip away the promised benefits?

And, why are they fighting so hard in court to prevail?

This is what I just don't get.

One of the main things they did was to strip away the promised RPUs.

But, RPUs don't cost them anything. And, in the current environment, they are nearly worthless anyway.

They won't allow an RPU to clear unless they've tried everything possible to sell every last seat and, then, they'll prioritize on fare class, then on status.

So, the only way a MM who doesn't otherwise have status will have a chance to use the RPU is when nobody bought the seat with cash, nobody bought the seat with miles, nobody upgraded into the seat with miles and cash, nobody with higher status or on a higher fare upgraded into it, and, then, after nobody on the entire flight chose to pay for it, at an ever declining price, despite receiving offers at time of booking, potentially more offers by email, more offers that keep changing (declining) in value on the web site over time, and then, finally, yet another offer at time of check-in.

Only after ALL OF THIS will the MM with no status on a low fare even have the chance to use his or her RPU. And, by then, it costs nothing to UA, because that seat is otherwise empty. It means they couldn't even pawn off the seat to a kettle for $29.

So, with something so worthless anyway, that costs them nothing, why did they pull it, why did they alienate and anger this community, and why are they fighting so hard to defend the decision?
But a MM does have status. Premier Gold (for now)
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Old Feb 1, 2013, 3:03 pm
  #978  
 
Join Date: Jun 2005
Posts: 4,645
Originally Posted by Baze
But a MM does have status. Premier Gold (for now)
Sorry. My words were sloppy.

What I meant is that the MM can't beat out a GS or a 1K or a PP unless he or she pays a high fare class. So, yes, the MM has status, but is only competing at the lowest two tiers. And, let's be honest here, with all the hoops that one must go through to get a UG now, how many empty seats are left for the Gold or Silver members anyway? It's not like the MM is poaching from HVFs. The MM is, if anything, competing with a population that doesn't even have RPUs anyway and surely never sees CPUs except on the rarest of flights.
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Old Feb 1, 2013, 3:04 pm
  #979  
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Posts: 60,174
Originally Posted by UrbaneGent
You guys! The court declined UA's Motion To Dismiss! One of the three counts was accepted by the Court, which is HUGE. We are off to discovery!

The Court's ruling was very clear and that the breach of contract claim survives. We are off to discovery and the case now moves forward!

This is for all of PM MMilers who were promised LIFETIME benefits. This is HUGE and LANDMARK because the airlines hide behind their T&C's

WooHoo!

UG
Agreed. Good first step reached here.
uastarflyer is offline  
Old Feb 1, 2013, 3:36 pm
  #980  
 
Join Date: Oct 2011
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Posts: 1,552
Originally Posted by mitchmu
Why did UA strip away the promised benefits?

And, why are they fighting so hard in court to prevail?
In retrospect, given the other changes, I doubt they would kill the upgrades again because your logic makes sense. But once done, they now are fighting to maintain their RIGHT to make changes at will.

(I also think that they genuinely did not think through or understand what the reaction of pmUA flyers would be or the value of loyal frequent flyers; they showed more sensitivity to pmCO flyers, though.)
abaheti is offline  
Old Feb 1, 2013, 3:41 pm
  #981  
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Originally Posted by mitchmu
Sorry. My words were sloppy.

What I meant is that the MM can't beat out a GS or a 1K or a PP unless he or she pays a high fare class. So, yes, the MM has status, but is only competing at the lowest two tiers. And, let's be honest here, with all the hoops that one must go through to get a UG now, how many empty seats are left for the Gold or Silver members anyway? It's not like the MM is poaching from HVFs. The MM is, if anything, competing with a population that doesn't even have RPUs anyway and surely never sees CPUs except on the rarest of flights.
I agree, as a gold upgrades just don't happen much. Especially flying out of a super hub like I do, SFO. 2012 I was about 30% and so far in 2013, 0 for 4.
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Old Feb 1, 2013, 3:44 pm
  #982  
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Originally Posted by dgcpaphd
Hogwash, indeed!

Some people have trouble "connecting the dots" so to speak.

Of course there were specific detailed promises made to those reaching million-mile status. To deny this fact is fool hearty.

For those who have a problem believing that specific promises were made, let's revisit this one specific lifetime promise again:



Any more denials of specific lifetime promises?

-
You can post that a million more times, but still, "promise" =/= "contract."
Bear96 is offline  
Old Feb 1, 2013, 4:00 pm
  #983  
 
Join Date: Jul 2004
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Programs: *A Junkie, SQ PPS, Skywards Gold, 2 Million Mile Flyer;*wood LT Plat, BA MM
Posts: 1,762
Is it possible some people just fight for what is just? When you are told LIFETIME only to have an arrogant CEO ignore that? You are right, the 100% miles, the upgrades, etc. is watered down and not worth what it was, but still LIFETIME. And someone thought it important to fight. All the airlines and hotel loyalty programs now will see that when you promise something for a LIFETIME that's what it means.

Lawyer's email is: [email protected]
SUBJECT: UA MM Class-Action

Write: Thank you, blah, blah...I am 10/20% of the threshhold of being at a million miles. If this goes to settlement, please don't forget about us and hopefully we can be grandfathered in with the MM, it would mean so much to me!

Signed Jack Smith


He will get it. Don't put your MP account # just your email addy. They will have your email on file. How do I know this? I spoke to John Edgar myself, anyone can call him.

UG
UrbaneGent is offline  
Old Feb 1, 2013, 4:08 pm
  #984  
 
Join Date: Jan 2005
Location: ORD
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"...Long before there was ever a class action filed, a group of us Flyertalk members repeatedly attempted to have the demotions and breach of our million-mile lifetime promises rescinded..."


Thank you for your and others efforts! 30 years of UAL flying (until 3/3) and maybe, just maybe they will be held to their word which far surpasses any legal, financial-based or marketing double speak.
seagar is offline  
Old Feb 1, 2013, 4:08 pm
  #985  
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Originally Posted by Bear96
You can post that a million more times, but still, "promise" =/= "contract."
he likes posting that. I've tried to engage him to see if he is willing to discuss his issue, but he wont.
colpuck is offline  
Old Feb 1, 2013, 4:09 pm
  #986  
 
Join Date: Aug 2007
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Originally Posted by mitchmu
Wow. This thread is huge. I've only scanned it from time to time, and don't have much interest in the intense armchair lawyering that's going on. I would, however, like to propose a brief detour to consider a question that I don't think has been asked here.

Why did UA strip away the promised benefits?

And, why are they fighting so hard in court to prevail?

This is what I just don't get.

One of the main things they did was to strip away the promised RPUs.

But, RPUs don't cost them anything. And, in the current environment, they are nearly worthless anyway.

They won't allow an RPU to clear unless they've tried everything possible to sell every last seat and, then, they'll prioritize on fare class, then on status.

So, the only way a MM who doesn't otherwise have status will have a chance to use the RPU is when nobody bought the seat with cash, nobody bought the seat with miles, nobody upgraded into the seat with miles and cash, nobody with higher status or on a higher fare upgraded into it, and, then, after nobody on the entire flight chose to pay for it, at an ever declining price, despite receiving offers at time of booking, potentially more offers by email, more offers that keep changing (declining) in value on the web site over time, and then, finally, yet another offer at time of check-in.

Only after ALL OF THIS will the MM with no status on a low fare even have the chance to use his or her RPU. And, by then, it costs nothing to UA, because that seat is otherwise empty. It means they couldn't even pawn off the seat to a kettle for $29.

So, with something so worthless anyway, that costs them nothing, why did they pull it, why did they alienate and anger this community, and why are they fighting so hard to defend the decision?
I have no issue redeeming RPUs. Have one applied for a 5-segment itinerary where every segment cleared starting tomorrow including SEA-ORD and IAD-SFO.

YMMV

Originally Posted by Bear96
You can post that a million more times, but still, "promise" =/= "contract."
Correct.

Originally Posted by colpuck
he likes posting that. I've tried to engage him to see if he is willing to discuss his issue, but he wont.
I tried long ago to reason with him as well but he's intent on labeling those that disagree with him as uninformed and not entitled to talk on the subject. It's unfortunate and gives the others working hard on this initiative a bad name.
bmvaughn is offline  
Old Feb 1, 2013, 4:15 pm
  #987  
 
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I think United is in a tough spot right now - so many people on here think it is so easy to give out the CR-1's, etc - and I don't think it is that simple.

Simply settling, it almost makes it be that United cannot indeed change the program as it sees fit at any time. They may want a ruling to set a precedent moving forward. If they settle it opens up a who new set of issues.

And, jeez, doesn't anyone have a better clean screenshot - it looks like a 5 year old took it off the printer.
HNLbasedFlyer is offline  
Old Feb 1, 2013, 4:43 pm
  #988  
 
Join Date: Oct 2007
Programs: UA 1K 1MM / AA PP, Marriott Lifetime Gold
Posts: 949
Originally Posted by mitchmu
Wow. This thread is huge. I've only scanned it from time to time, and don't have much interest in the intense armchair lawyering that's going on. I would, however, like to propose a brief detour to consider a question that I don't think has been asked here.

Why did UA strip away the promised benefits?

And, why are they fighting so hard in court to prevail?


This is what I just don't get.

One of the main things they did was to strip away the promised RPUs.

But, RPUs don't cost them anything. And, in the current environment, they are nearly worthless anyway.


So, with something so worthless anyway, that costs them nothing, why did they pull it, why did they alienate and anger this community, and why are they fighting so hard to defend the decision?
I think it has to do with the CFO's 'Over-Entitled' elites comment. This unethical regime feels entitled (pardon the irony) to ruthlessly slash and burn anything pmUA did well that wasn't the CO way. Above that, the Sr. mgmt team is generally incompetent at running the new UA and also seems to have open (and inexplicable) disdain for anyone who gave hundreds of thousands or millions of dollars to Old United.

Why not make a show of that disdain while saving a few bucks by slashing some benefits? Makes their arrogant egos feel good and they thought they could get away with it - just like every other ridiculously bad decision they've made.

They seem to want to run this airline into the ground by actively pissing off their most valuable customers (or the previously most-valuable customers - those who had an outsized impact on the company over a number of years). They're on their way - I just wonder when a board shakeup and then a senior exec shakeup happens - pre chapter 11 (again?! ) or post.

p.s. for the record I am not a MM.

Last edited by Clarkcc1; Feb 1, 2013 at 5:29 pm Reason: fixed sp error, added clarification
Clarkcc1 is offline  
Old Feb 1, 2013, 4:53 pm
  #989  
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Location: Ewa Beach, Hawaii
Posts: 10,909
Originally Posted by UrbaneGent
Is it possible some people just fight for what is just? When you are told LIFETIME only to have an arrogant CEO ignore that? You are right, the 100% miles, the upgrades, etc. is watered down and not worth what it was, but still LIFETIME. And someone thought it important to fight. All the airlines and hotel loyalty programs now will see that when you promise something for a LIFETIME that's what it means.

Lawyer's email is: [email protected]
SUBJECT: UA MM Class-Action

Write: Thank you, blah, blah...I am 10/20% of the threshhold of being at a million miles. If this goes to settlement, please don't forget about us and hopefully we can be grandfathered in with the MM, it would mean so much to me!

Signed Jack Smith


He will get it. Don't put your MP account # just your email addy. They will have your email on file. How do I know this? I spoke to John Edgar myself, anyone can call him.

UG
Thank you. I will send an email
Baze is offline  
Old Feb 1, 2013, 5:09 pm
  #990  
 
Join Date: Apr 2008
Posts: 2,358
Originally Posted by bmvaughn

I tried long ago to reason with him as well but he's intent on labeling those that disagree with him as uninformed and not entitled to talk on the subject.
-
It is possible that I did not want to waste my time discussing the issues while you had already made up your mind that you are correct. As it turned out, based on the ruling of the judge, I was correct.

If I recall correctly, you were one of the posters who repeatedly insisted that the case would never get launched and that the case was frivolous because UA has the right to change the program at any time.

I am exceedingly pleased with the outcome of the case in that UA's Motion to Dismiss was denied.

Now we must wait until the next step of the legal system. Hopefully, the breach of the million-mile program will be rescinded either by UA (willingly) or by the court (by order of the court).
-

Originally Posted by Clarkcc1
-
p.s. for the record I am not a MM.
You may not be a million-miler but your insight and good analysis presented is quite remarkable, in a good way. Thanks.
-

Last edited by dgcpaphd; Feb 1, 2013 at 5:16 pm Reason: merge
dgcpaphd is offline  


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