Breach of Contract

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7^th Circuit Court of Appeals

Case Name: Holli Hammarquist, et al v. United Continental Holdings, Inc.

Case No.:15-1836 & 15-1845

Officials: POSNER, MANION, and HAMILTON, Circuit Judge

Practice Area: Breach of Contract

Amendment of rewards program does not amount to breach were alterations to rewards program allowed under contract.

“Yet the evidence all pointed in the opposite direction: the Million‐Mile Flyer Program was simply a component of MileagePlus, not a free‐standing contract for Million‐Mile Flyer benefits. Id. at 1127. In particular: (1) only members of MileagePlus were eligible to receive Million‐Mile Flyer status; (2) information about the Million‐Mile Flyer Program was situated “under the umbrella” of MileagePlus on United’s website; and (3) a member’s Million‐Mile Flyer status was indicated on his ordinary MileagePlus membership card. Id. In light of these facts, the plaintiff failed to establish the existence of a separate agreement for benefits apart from the agreement governed by the MileagePlus Program Rules. Because those rules expressly allowed United to change the program benefits at any time, we concluded that United did not breach a contract by altering the benefits associated with the Million‐Mile Flyer status level of MileagePlus. Id.”

Affirmed

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.