Greenberg v. United Airlines

563 N.E.2d 1031, 206 Ill. App. 3d 40, 150 Ill. Dec. 904, 1990 Ill. App. LEXIS 1719
CourtAppellate Court of Illinois
DecidedNovember 9, 1990
Docket1-90-0453
StatusPublished
Cited by32 cases

This text of 563 N.E.2d 1031 (Greenberg v. United Airlines) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greenberg v. United Airlines, 563 N.E.2d 1031, 206 Ill. App. 3d 40, 150 Ill. Dec. 904, 1990 Ill. App. LEXIS 1719 (Ill. Ct. App. 1990).

Opinion

PRESIDING JUSTICE LaPORTA

delivered the opinion of the court:

Plaintiffs Michael and Iris Greenberg sued United Airlines in 1989 contending that 1988 changes to the company’s Mileage Plus frequent flier program breached a previous contract between the parties. Plaintiffs allege that the previous contract was made in 1981 when plaintiffs first joined the Mileage Plus program and began accruing miles. Plaintiffs sued for breach of contract, anticipatory breach, fraud, violations of the Illinois Consumer Fraud and Deceptive Business Practices Act (Consumer Fraud Act) (Ill. Rev. Stat. 1979, ch. 121½, par. 261 et seq.) and the Illinois Uniform Deceptive Trade Practices Act (Ill. Rev. Stat. 1979, ch. 121½, par. 311 et seq.), negligent misrepresentation, breach of implied duty of fair dealing, and declaratory judgment contending the 1988 changes limit their rights under the 1981 contract. Plaintiffs sought relief for themselves and for a class of people similarly situated. A trial judge dismissed the amended complaint, never certifying the class, and found plaintiffs had failed to state a cause of action. We affirm the trial court’s decision.

For purposes of this appeal, the parties agree that United and the Greenbergs entered into a contract in 1981. Because this action was dismissed on defendant’s motion to strike the amended complaint and dismiss the cause of action, we consider only the sufficiency of the amended complaint.

The 1981 Mileage Plus rules were encompassed in a brochure mailed to several million existing United Airlines customers. Members of the company’s Red Carpet Club and Executive Air Travel Program were enrolled automatically and simply given cards on which they could record their mileage. The brochure described the method by which a frequent flier could accumulate miles until December 31, 1982, and described the benefits the frequent flier could receive by trading those miles for award certificates for discounted travel and other benefits. The brochure also stated: “Note: *** Award certificates must be requested by March 1, 1983. Mileage Plus discounted and free travel on United must be completed by June 30, 1983.” The promotional brochure contained no other terms or conditions.

In March 1982, United mailed an “Advisory” to Mileage Plus users which said, in pertinent part, “Due to the overwhelmingly positive response, Mileage Plus will continue beyond December 31, 1982, until such time as we may elect to announce a new expiration date.” Plaintiffs do not challenge defendant’s action under the 1982 advisory that extended the deadline and permitted United to administer the Mileage Plus program as it did through June 1988. Plaintiffs joined the program in 1981 and continue to use the program.

A third brochure released in 1988 provided for changes that went into effect July 1, 1988. The 1988 rules include numerous revisions to the Mileage Plus program. The new program provides among other changes that frequent fliers who were members prior to July 1, 1988, would have until December 15, 1994, to use the mileage credit earned prior to July 1, 1989. The mileage redemption procedure in place prior to the 1988 rules changes will apply to those miles. After that time, the 1988 rules state, members can transfer their mileage to the “new program.” Through this item in the brochure, United was exercising its option to set a new expiration date as expressed in the 1982 advisory.

The 1988 brochure includes terms and conditions that state that United has the right to terminate the program, or to change the program rules in whole or part at any time with or without notice, even though changes affect the value of the mileage already accumulated.

The final portion of the 1988 brochure includes the award redemption rules referred to above that provide for both existing Mileage Plus members and for new members. It states: “On or after July 1, 1989, whenever a member’s account balance reaches 20,000 miles, four (4) Award Cheques, valid for three (3) full years will be automatically sent to the member, and 20,000 miles will be deducted from the account.”

Plaintiffs filed suit against United in August 1989 alleging breach of contract, fraud, negligent misrepresentation, breach of an implied duty of fair dealing, declaratory judgment and statutory violations of the Illinois Uniform Deceptive Trade Practices Act and the Consumer Fraud Act. Each count alleged that the 1988 rules interfered with rights already vested under the 1981 rules. The trial judge dismissed the complaint in October 1989 for failure to state a cause of action. Plaintiffs filed an amended complaint in November 1989, adding a count for anticipatory breach of contract. In January 1990, the trial judge dismissed the amended complaint with prejudice for failure to state a cause of action. The trial judge denied a subsequent motion for reconsideration filed by plaintiffs and plaintiffs appealed.

To state a cause of action, a complaint must be both legally and factually sufficient; it must set forth a legally recognized claim as its basis for recovery and must plead facts which bring the claim within the legally recognized cause of action alleged. Failure to meet both requirements mandates dismissal of the complaint. (Sider v. Outboard Marine Corp. (1987), 160 Ill. App. 3d 290, 299, 513 N.E.2d 449, 454.) In evaluating a motion to dismiss, all facts properly pleaded are taken as true (Anderson Electric, Inc. v. Ledbetter Erection Corp. (1986), 115 Ill. 2d 146, 148, 503 N.E.2d 246, 247); however, conclusions of law or fact unsupported by allegations of specific fact upon which the conclusions rest are not admitted. Stuart Town Homes Corp. v. Rosewell (1988), 176 Ill. App. 3d 59, 63-64, 530 N.E.2d 1046, 1049.

Plaintiffs’ complaint includes four legal theories that require an allegation of damages — breach of contract, anticipatory breach, fraud and negligent misrepresentation. Sider, 160 Ill. App. 3d 290 (injury is part of breach of contract action); Yale Development Co. v. Aurora Pizza Hut, Inc. (1981), 95 Ill. App. 3d 523, 420 N.E.2d 823 (injury is part of anticipatory breach action); Soules v. General Motors Corp. (1980), 79 Ill. 2d 282, 402 N.E.2d 599 (injury is part of fraud action); Zimmerman v. Northfield Real Estate, Inc. (1986), 156 Ill. App. 3d 154, 510 N.E.2d 409 (injury is part of negligent misrepresentation action).

Defendant argues that the fatal mistake in the allegations in these four counts in plaintiffs’ complaint is a failure to allege an injury. We agree.

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Bluebook (online)
563 N.E.2d 1031, 206 Ill. App. 3d 40, 150 Ill. Dec. 904, 1990 Ill. App. LEXIS 1719, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greenberg-v-united-airlines-illappct-1990.