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American AAdvantage Just Made One Shocking Change to Its Terms and Conditions

Apr 01 2015

The American AAdvantage program recently updated its terms and conditions. They added this sentence: To the full extent allowed by law, these Terms and Conditions disclaim any duty of good faith and fair dealing as well as any implied contractual terms or obligations. That’s pretty striking language — they have no “duty of good faith and fair dealing” — and my conclusion is that this means either nothing at all or at most only one thing: American doesn’t have very good lawyers.

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Supreme Court Justice Conflicts of Interest in their Current Airline Miles Case

This week the Supreme Court heard oral argument in the case of the Rabbi who complained too much and Northwest Airlines (now owned by Delta) shut down his frequent flyer account as a result. The Rabbi sued, and one of the crucial questions in whether his suit is permissable is whether a state court’s view of contracts as having to be made fairly and in good faith is an acceptable overlay in light of the Airline Deregulation Act’s prohibition on states regulating an airlines prices, routes, and schedules. I’ve covered the major arguments in this space already. And having taken an eye to the knowledge (and in some cases lack of knowledge) that the Justices appear to posses regarding frequent flyer miles based on the questions they asked on Tuesday, I thought it worth noting…

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Highlights from Supreme Court Oral Argument: What the Justices Do — And Do Not — Know About Miles and Points

Tuesday night I read the Supreme Court transcripts so you don’t have to — there were some priceless frequent flyer moments during the Court’s oral argument in the case of the Rabbi who complained too much and Ngorthwest Airlines closed his frequent flyer account… Justice Ginsburg didn’t seem to think that an airline unilaterally cancelling an account and refusing to honor accrued obligations was reasonable. JUSTICE GINSBURG: Mr. Clement, the argument was made that if — if the airline has an unreviewable right to terminate this agreement for any reason or for no reason, if that is so, then it’s an illusory contract. What — what is your answer to that, if one 16 party can get out willy-nilly, why — what kind of 17 bargain is it? Delta’s lawyer suggests that people pay for…

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This Week the Supreme Court Will Hear the Case of the Rabbi Kicked Out of His Frequent Flyer Program

Back in May I discussed the Supreme Court agreeing to hear the case of the Rabbi whose Northwest account was closed for complaining too much. Ginsburg sued. His complaint was dismissed in federal district court on the basis that state law can’t be used to address airline price, route or service issues since those are pre-empted by the federal Airline Deregulation Act. A 9th Circuit Court of Appeals ruling disagreed, and now the Supreme Court will hear the issue. Reader and attorney Eric M. Fraser updates us on the case, as it prepares to go to oral argument in front of the Supreme Court on Tuesday. Eric M. Fraser is an appellate and antirust attorney with Osborn Maledon. He is an active flyer and reads View from the Wing to help keep his preferred status…

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A Supreme Court Watcher Explains the Issues Raised By the Rabbi’s Account Closure Complaint

Yesterday I discussed the Supreme Court agreeing to hear the case of the Rabbi whose Northwest account was closed for complaining too much. Ginsburg sued. His complaint was dismissed in federal district court on the basis that state law can’t be used to address airline price, route or service issues since those are pre-empted by the federal Airline Deregulation Act. A 9th Circuit Court of Appeals ruling disagreed, and now the Supreme Court will hear the issue. I asked reader and attorney Eric M. Fraser if he’d share thoughts on the case. Mr. Fraser is an attorney with Osborn Maledon and an active flyer. He has written posts about the Supreme Court at SCOTUSblog and has preferred status in US Airways’s Dividend Miles program — status he doesn’t want to see disappear. His comments follow:…

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