AMER ICAN AIRLINES, INC.
v. TARRANT COUNTY, TEXAS JACQUES E. VROOM, JR.
JUDICIAL DISTRICT
ORIGINAL PETITION WITH REQUEST FOR DISCLOSURE Plaintiff, American Airlines, Inc., ("American") brings this
I. Discovery Level
Discovery should be conducted under a Level 3 plan. II. Nature of the Action
Vroom bought an AAirpass from American.
The AAirpass entitled
companion traveling with him to travel on American in first class withou t further charge. The terms and conditions of the AAirpass prohibited fraudulent use in general and specifica1ly prohibited booking travel with a companion and then selling andlor bartering the companion travel. Nevertheless, Vroom developed a scheme whereby he could conven iently and illicitly profit from his AAirpass through fraudulent use and by selling andlor bartering companion travel.
Vro~~'s travel
patternS make clear that he 6ftentraveled forthe sole purpose of ferrying
companion travelers to satisfy the AAirpass requirement that he travel with a companion. When doing so, he often made mUltiple bookings for each trip, thereby removi ng the seats from American's inventory and preventing American from seIling the seats that Vroom would never use.
When he ferried a companion to whom he had sold travel, he fraudul ently accumulated
ORIGINAL PETITION
979064_1
PAGE 1
frequent flier miles in the AAdvantage program for both his travel and the companion's travel. Vroom's bookings and travel patterns also indicate that if he had agreed to ferry a companion, but decided he did not want to make the trip himself, he would simply allow that person to use his AAdvantage miles to make the trip. American sues to recover the losses incurred from Vroom's conduct.
III. Parties American is a Delaware corporation with its worldwide headquarters at 4333 Amon Fort Worth, Tarrant Countj, Texas 76155. Vroom is an individual, and he may be served with process at his horne address: 5713 Vickery Boulevard, Dallas, Texas 75206.·
IV. Jurisdiction and Venue This Court has subject matter jurisdiction over this case because the amount in controversy exceeds the Court's minimum jurisdictional requirements. This Court has personal jurisdiction over Vroom because he is a citizen and resident of Texas. Venue is proper in Tarrant County under TEX. Cry.
PRAC.
& REM. CODE § 15.002
because all or a substantial part of the activities, events, and damages at issue occurred in Tarrant County.
V. Facts Giving Rise to this Action In 1990, American entered into a written contract with Vroom, Inc. for Vroom, Inc. to
purchase an AAirpass for unlimited-mileage lifetime travel with a companion
("AAirpass
Agreement"). Vroom, Inc. was owned by Vroom. In March of 1994, the AAirpass Agreement was transferred to Square One ConSUlting Corporation, another entity owned by Vroom. In ORIGINAL PETITION 979064_1
PAGE 2
;
"
" 1 1 f t " "'t
May of 1995, the AAirpass Agreement was transferred from Square One Consulting Corporation to Vroom. Both transfers were made pursuant to the tenns of the AAirpa ss Agreement and by written agreement with the transferor, the transferee, and American. Both transfers specifically provided that the original AAirpass Agreement was otherwise uname nded, unmodified, and remained in full force and effect. Paragraph 12 of the AAirpass Agreement provides that AAirpass travel is subject to American's Rules Tariff and all other tenns and conditions replacing or supplementing such tariff. The International General Rules are part of, or a supplement to, the tariff. Such rules specifically provide that AAirpass companion travel may not be sold or bartered under any circumstances. Furthennore, paragraph 13 of the AAirpass Agreement prohibits fraudulent use of the AAirpass. Despite the clear prohibitions against both fraudulent use and
selling AAirpass
companion travel, Vroom repeatedly used his AAirpass fraudulently and sold AAirpass companion travel. He simply booked one or more flights for himself and a companion at no cost and then sold the companion travel, pocketing for himself all the money paid by the companion and depriving American of the revenue.
Every time he did this, he misrepresented to American
the nature of the AAirpass travel. If American had knovvn the truth about what Vroom was doing, it would not have permitted him or the companion to travel and would have been able to sell both seats to others. Not only would American have sold those seats to others, it would not have incurred the taxes, fees, and surcharges it paid on the travel by Vroom and his companion. Moreover, American would not have permitted Vroom to accumulate AAdvantage miles for such travel and then transfer travel using those AAdvantage miles to others. Finally, American would never have permitted Vroom to make mUltiple bookings for the same destination.
ORIGIN AL PETITION 979064_1
PAGE 3
"f
VI. Firs t Cau se of Action - Bre ach of Con trac t American re-alleges the material fact s in the preceding paragraphs. The AAirpass Agreement is a vali d, enforceable contract binding on Vroom, and American is entitled to sue for its breach. American has met all con ditions precedent to, and otherwise complied with, the AAirpa ss Agreement. Vroom breached the AAirpass Agreement by fraudulently using the AAirpass and by selling (or bartering) AAirpa ss companion travel. Vroom's breaches caused American damages. VII. Second Cau se of Action - Fra ud American re-alleges the material fact s in the preceding paragraphs. Vroom made material representatio ns to American about the nature of the travel by himself and his companions. Tho se representations were false. Wh en Vroom made those representations he knew they were false. He made the representations with the intent that American would rely on them, and American did rely on them. Americ an was damaged by Vroom's misrepresentations. Vroom's fraudulent conduct was outrageous, malicious, and otherwi se morally reprehensible. Because American's damages resulted from Vroom's frau d, the law entitles American to exemplary damages. VIII. Thi rd Cause of Action - Mo ney Had and Received American re-alleges the material fact s in the preceding paragraphs. As a result of Vroom's unlawful conduct, he has obtained and hold s money fTom travelers that in equity and good con science belongs to American. Americ an has been damaged by Vroo m's conduct.
ORI GrN AL PETITION 979064_1
PAGE 4
IX. Damages Vroom's breach of contract, fraud, and violation of the equitable doctrin e of money had and received has caused American substantial damages: First, Americ an was deprived of the revenue it should have received for (1) the travel of the person to whom Vroom sold the companion travel and (2) selling the seat taken by Vroom when he ferried his companion traveler. Second, American had to pay the taxes, fees, and surcharges for the improper travel by Vroom and his companion. Third, many of the fraudulently accrued AAdvantage miles were used for travel, and American was damaged because it was deprived of the revenue it would have otherwise received for travel redeemed with those miles. Fourth, Vroom's double-booking scheme deprived American of the revenue it should have received from selling seats that Vroom pulled from inventory but did not fly. Finally, Vroom has refused to tender to American the money he was paid for the companion travel he sold.
X. Attorn eys' Fees American has been required to retain attorneys to protect its rights and prosecute this claim. American's attorneys presented American's claim to Vroom in
~Titing,
but Vroom failed
to tender the amount owed within 30 days after the written presentment of the claim. Pursuant to TEX. Cry.
PRAC. & REM.
CODE
§ 38.001, American is entitled to recover its reasonable and
necessary attorneys' fees.
XI. Conditions Precedent All conditions precedent to American's claims for relief have been perform ed or have occurred.
ORIGIN AL PETITION
PAGES
979064_1
...............................
_"--"-------------
XII. Jury Demand the appropriate jur y the district clerk all of to rs de ten d an l tria y Am eri ca n de ma nd s a jur fee wi th thi s petition.
osure XIII. Request for Discl of close wi thi n 50 da ys requests tha t Vr oo m dis n ca eri Am 4, 19 P. Un de r TE X. R. Cl Y. in Ru le 194.2. an d material described on ati orm inf the , on titi ser vic e of thi s pe f XIV. Prayer for Relie qu es E. Vr oo m, uests tha t defendant, Jac req y ull ctf pe res ;, Inc s, ne Plaintiff, AmericaIl Airli t ag ain st him for it be aw ard ed jud gm en t tha al, tri al fin on d, an d answer an Jr., be cit ed to ap pe ar the following: 1. 2. 3. 4. 5. 6.
Actual da ma ge s; Pu nit ive damages; At tor ne ys ' fees; jud gm en t interest; Pr e-j ud gm en t and po stCo urt costs; and, ca n is entitled. equity, to which Am eri in or law at , ief rel er All oth
, Respectfully su bm itt ed
M AN , L.L.P. KE LL Y, HA RT & HA 25 00 201 Main Street, Su ite 2 10 76 s xa Fort Worth, Te e on Ph (817) 33 2-2 50 0 (817) 87 8-9 76 7 - Fa x AI NT IF F AT fO RN EY S FO R PL
PAGE 6
OR IGI NA L PETITION 979064_1