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Minn. Rabbi Loses Court Case over Frequent Flier Miles

Updated: 04/02/2014 4:08 PM
Created: 04/02/2014 11:31 AM KSTP.com
By: Scott Theisen

Supreme Court justices unanimously ruled Wednesday against a Minnesota rabbi whose frequent complaints about an airline got him tossed out of its frequent flier program.
    
The court dismissed a lawsuit from Rabbi S. Binyomin Ginsberg over Northwest Airlines' decision to strip him of his top-level frequent flier status and then end his membership.
    
Northwest, since absorbed by Delta Air Lines Inc., said it cut off Ginsberg because he complained too much. The rabbi said Northwest did not act in good faith, and was trying to cut costs because of its merger with Delta.
    
The court said in an opinion by Justice Samuel Alito that the federal deregulation of the airline industry in 1978 prohibits most lawsuits like the one filed by Ginsberg.
    
The frequent flier program is clearly connected to the airline's prices, routes or services, which are covered under the Airline Deregulation Act, Alito said.
    
Ginsberg and his wife flew almost exclusively on Northwest, logging roughly 75 flights a year to travel across the U.S. and abroad to give lectures and take part in conferences on education and administration.
    
He said he flew on Northwest even when other airlines offered comparable or better flights and in 2005, reached the highest level of the WorldPerks program.
    
Northwest cut him off in 2008, shortly after Northwest and Delta agreed to merge. Ginsberg said Northwest was looking to get rid of the high-mileage customers.
    
Northwest says Ginsberg complained 24 times in a seven-month period, including nine instances of luggage that turned up late on airport baggage carousels. Northwest said that before it took action, it awarded Ginsberg $1,925 in travel credit vouchers, 78,500 bonus miles, a voucher for his son and $491 in cash reimbursements.
    
The airline pointed to a provision of the mileage program's terms that gives Northwest the right to cancel members' accounts for abuse.
    
Alito said the court ruling does not leave airline customers without recourse. The Transportation Department has authority to punish unfair and deceptive practices in air transport and can investigate complaints about frequent flier programs. Customers also have the option of enrolling in a rival airline's program, he said.
    
In a statement, Delta said it was pleased with the decision and would continue "to provide customers with a loyalty program that offers valuable benefits and rewards our members' travel."
    
Ginsberg's attorney, Adina Rosenbaum of the consumer advocacy group Public Citizen, said she was disappointed.
    
"We think it's one that harms consumers by giving airlines greater freedom to act in bad faith in performing their contracts with consumers," she said.
    
A federal trial judge cited earlier Supreme Court cases involving claims against frequent flier programs in dismissing Ginsberg's lawsuit, including his claim that Northwest did not live up to the terms of the contract. The judge said the contract gives the airlines the right to kick someone out of the mileage program at its "sole judgment."
    
But the 9th U.S. Circuit Court of Appeals in San Francisco said part of the suit could go forward involving whether Ginsberg and others can sue under state laws that require parties to a contract to act in good faith.
    
The case is Northwest vs. Ginsberg, 12-462.

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
 

The Supreme Court ruled Wednesday that a Minnesota rabbi who complained about an airline's frequent flier program is out of luck.
Photo: AP/Susan Walsh, File

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