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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 Jan 23, 2014, 5:25 pm
  #1981  
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Originally Posted by raehl311
The MP program isn't a contract of adhesion. A contract of adhesion is something like your cellular service contract - it can't be negotiated by the customer, and you *HAVE* to agree to it to get the service you pay for.

The Mileage Plus program is totally different. You can CHOOSE to enroll in Mileage Plus. If you do so, then you earn miles and other benefits. The cost of participating in this program is... NOTHING.

So there isn't really even a contract at all, because the flyer has not provided ANYTHING OF VALUE in exchange for the Mileage Plus benefits. (And no, airfare doesn't count, because everyone who pays the airfare gets to fly. Only people who agree to participate in the Mileage Plus program get Mileage Plus benefits.)

If you don't like the Mileage Plus rules, then don't sign up for the program and don't take the miles.
As far as I know, you can't negotiate what you get when you CHOOSE to sign up for MP. You can CHOOSE to sign up with cellular and you have to agree with the contract. Same with MP, you have to CHOOSE to sign up and when you do you have to agree with what they offer. Only difference I see is with cellular you pay a monthly fee and with MP you only get what they offer if you fly or charge to an appropriate card and with MP you can quit at anytime instead of end of the duration of the contract. But to get into either you have to CHOOSE to sign up and to sign up you have to agree with what they give you.
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Old Jan 23, 2014, 5:29 pm
  #1982  
 
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Originally Posted by sanfran8080 View Post

What does this mean exactly? I'm extremely close to Million miles. How will it affect me?


Originally Posted by Ari
It doesn't. You aren't even a member of the proposed class.
I beg to differ. For those close and/or trying to attain MM status, I'd now ask why waste your time since UAdbaCO can change the MM program at any time. What they 'offer' today could be gone tomorrow and following $misek's history and needing to cut $2 billion I would expect him to continue to devalue the MM program...changes you'll like.
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Old Jan 23, 2014, 5:31 pm
  #1983  
 
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Originally Posted by seagar
I beg to differ. For those close and/or trying to attain MM status, I'd now ask why waste your time since UAdbaCO can change the MM program at any time. What they 'offer' today could be gone tomorrow and following $misek's history and needing to cut $2 billion I would expect him to continue to devalue the MM program...changes you'll like.
Are there any US frequent flier programs that don't allow unilateral changes? I suspect the answer is "no."
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Old Jan 23, 2014, 5:40 pm
  #1984  
 
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Originally Posted by SFO 1K
I really get annoyed when I see something like a biblical citation in a legal proceeding - so much for Separation of Church & State. That citation in the judge's ruling adds absolutely no value to the decision and doesn't belong there.
Mr. Smisek must be chuffed indeed: God=United=Smizek.

For the record, United is not God - in the cosmos, in business, in law. Though perhaps in the minds of Mr. Smizek, the judge and some in this forum. And this, at this point, is all that matters.

Fortunately there are other actions and churches in which they will be tried.

Next.
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Old Jan 23, 2014, 5:45 pm
  #1985  
 
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Originally Posted by Firewind
Mr. Smisek must be chuffed indeed: God=United=Smizek.

For the record, United is not God - in the cosmos, in business, in law. Though perhaps in the minds of Mr. Smizek, the judge and some in this forum. And this, at this point, is all that matters.

Fortunately there are other actions and churches in which they will be tried.

Next.
Oh, UA is very, very, very far from being God...of anything.
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Old Jan 23, 2014, 6:01 pm
  #1986  
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Best part of this ruling? Never having to see that god-awful screenshot ever again.
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Old Jan 23, 2014, 6:14 pm
  #1987  
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Notwithstanding the substance of the ruling, it's deeply disappointing to me to read posts triumphant at the thought of the plaintiff's loss, and gleeful at the thought of additional expenses he may incur as the result.

At the very least, it's uncivil and infantile.

The plaintiff acted in a good faith belief that his case had merit, and unlike so many armchair attorneys, put his money and time where his mouth was. He fought the fight, instead of whinging.

There is no doubt that benefits of the program were materially reduced unilaterally. How this can be a cause for any customer's celebration is difficult to understand in any rational context.
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Old Jan 23, 2014, 6:15 pm
  #1988  
 
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Originally Posted by DeaconFlyer
Best part of this ruling? Never having to see that god-awful screenshot ever again.
Heck yeah, with all the red scribble even.
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Old Jan 23, 2014, 6:43 pm
  #1989  
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Originally Posted by DeaconFlyer
Best part of this ruling? Never having to see that god-awful screenshot ever again.
Hear hear.

MS Paint, not even once.

Originally Posted by Brian
Notwithstanding the substance of the ruling, it's deeply disappointing to me to read posts triumphant at the thought of the plaintiff's loss, and gleeful at the thought of additional expenses he may incur as the result.

At the very least, it's uncivil and infantile.

The plaintiff acted in a good faith belief that his case had merit, and unlike so many armchair attorneys, put his money and time where his mouth was. He fought the fight, instead of whinging.

There is no doubt that benefits of the program were materially reduced unilaterally. How this can be a cause for any customer's celebration is difficult to understand in any rational context.
I agree with you mostly. I was beaten up constantly in this thread as espoused my learned opinion on the merits of this lawsuit. I was insulted, mocked, and misquoted. While I regret the decision the judge made, it was I think, the correct legal call. I also predicted it as the most likely outcome. So, for me anyways today feels something like vindication.

Last edited by colpuck; Jan 23, 2014 at 6:48 pm
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Old Jan 23, 2014, 6:44 pm
  #1990  
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Originally Posted by Brian
The plaintiff acted in a good faith belief that his case had merit, and unlike so many armchair attorneys, put his money and time where his mouth was. He fought the fight, instead of whinging.
Wait...so because someone does something they believe in but which I believe is wrong I should be upset when the outcome I was expecting actually happens?

If someone wants to throw their money at a problem they see then good for them. But I don't have to be sad when they don't get their way.

I have no doubt that Lagen believed he was correct. That doesn't mean I believed he was correct or that I saw his actions as in my own best interests.
sbm12 is offline  
Old Jan 23, 2014, 6:47 pm
  #1991  
 
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Originally Posted by unavaca
Are there any US frequent flier programs that don't allow unilateral changes? I suspect the answer is "no."
That has nothing to do with my point. I (and sure many, many others) spent 20 years flying United, where ONLY UAL miles counted and spent close to $300,000 on my belief and the UAL COMMITTMENT that if I honored my part of the bargain, they would honor LIFETIME benefits. They not only did not honor the stated benefits, during those 20 years I worked towards the goal but then demoted my status below those from CO that were able to fly fewer miles on the company's airline and elevated to Platinum. Judge ruled, I lost but believe United is losing revenue from not just me.

Why would anyone ever invest one more flight in the hopes of attaining MM status for 'promised' benefits @ UAdbaCO? To your question, I don't know but so far at least AA has treated me as a valued customer.
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Old Jan 23, 2014, 6:55 pm
  #1992  
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Originally Posted by sbm12
Wait...so because someone does something they believe in but which I believe is wrong I should be upset when the outcome I was expecting actually happens?

If someone wants to throw their money at a problem they see then good for them. But I don't have to be sad when they don't get their way.

I have no doubt that Lagen believed he was correct. That doesn't mean I believed he was correct or that I saw his actions as in my own best interests.
My words were: "it's deeply disappointing to me to read posts triumphant at the thought of the plaintiff's loss, and gleeful at the thought of additional expenses he may incur as the result."

Which you changed to suggesting I said you "should be upset when the outcome I was expecting actually happens."

I have no doubt you believe you were accurately quoting me. That doesn't mean you were, and in this case, you didn't.
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Old Jan 23, 2014, 7:13 pm
  #1993  
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Originally Posted by Brian
My words were: "it's deeply disappointing to me to read posts triumphant at the thought of the plaintiff's loss, and gleeful at the thought of additional expenses he may incur as the result."

Which you changed to suggesting I said you "should be upset when the outcome I was expecting actually happens."

I have no doubt you believe you were accurately quoting me. That doesn't mean you were, and in this case, you didn't.
But I am happy the ruling came down in this way. Is that the same as "triumphant" in your context or not?
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Old Jan 23, 2014, 9:35 pm
  #1994  
 
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Originally Posted by Brian
There is no doubt that benefits of the program were materially reduced unilaterally. How this can be a cause for any customer's celebration is difficult to understand in any rational context.
This. x10000. Sadly par for the course who roam this forum rather than fly anywhere near enough to have been affected.

Last edited by iluv2fly; Jan 24, 2014 at 8:38 am Reason: unnecessary
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Old Jan 23, 2014, 9:49 pm
  #1995  
 
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A very preliminary thought on the District Judge's ruling: misspelling breach as "beach" and contract as "contact" in the first couple pages of an opinion does not exactly bolster the Court's credibility.
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