December 22, 2024

The Haggler: A Mr. Nader Is Calling, and He Wants a Refund

Now, if you supported Al Gore and are still furious about Mr. Nader’s role in the 2000 presidential election, the mere mention of his name may make you boil.

Well, boil somewhere else.

This, if you need a reminder, is not a column about politics. It’s about consumer justice, and it is hard to think of anyone who has worked more tirelessly and more effectively for that cause than Ralph Nader. For the Haggler, a parvenu in the field, hearing from this guy was like a weekend fiddler’s getting a call from Mozart.

He phoned to tell a story, and it turned out to be a good one, with an interesting moral. It goes like this:

In March, Mr. Nader was scheduled to give a press conference and speech in Knoxville, Tenn. He’d bought two round-trip tickets — one for him, one for an associate — from Washington, on US Airways, for $1,380 apiece.

On the day of the event, the forecasts were for severe thunderstorms and tornadoes, and Mr. Nader decided that it was possible his flight would be canceled. So he opted to jump in his car and drive.

He made his engagements in time and incurred two $150 cancellation fees from US Airways. But he didn’t get the rest of his money back. Instead, the airline offered credits that could not be transferred and had to be used within a year. Otherwise, they would be forfeited.

Suffice it to say, this did not please Mr. Nader.

“Could any dictatorship be more efficient?” he asked the Haggler. “The airlines have been pursuing this forfeiture thing for a decade now. It’s like printing money.”

So Mr. Nader wrote to US Airways and demanded a refund. The airline said no. Mr. Nader, you will not be surprised to learn, did not like that answer, and he escalated his campaign with calls.

About now, roughly half of readers are thinking some variation of the following: “Wait a minute. When Nader bought those tickets, he agreed to a contract, which no doubt stipulated all of the particulars that he later objected to. Too late, pal. If you didn’t like the terms, you shouldn’t have purchased that ticket.”

The Haggler hears you. And he’d like to respond with yet another story.

This one takes place in 1972, when a man — let’s call him Ralph Nader, because that was his name — bought a plane ticket from Washington to Hartford for a speaking engagement.

Unfortunately, the flight was overbooked and Mr. Nader was bumped. He sued, alleging fraudulent misrepresentation because the airline had not disclosed its policy of deliberately overbooking flights. The case ultimately landed in the Supreme Court, where Mr. Nader prevailed.

The $25,000 in damages he was originally awarded were ultimately whittled to nil. But his primary goal wasn’t to get rich. It was to change a policy. After his victory, airlines began holding those impromptu auctions in which passengers are asked if they will take a later flight in exchange for a goodie — like a credit for a round-trip ticket.

IF you’ve ever nearly been bumped from a seat but got on board courtesy of an instant auction, you can thank Mr. Nader. If you have ever raised your hand and said, “I’ll take the later flight and the goodie,” you can thank Mr. Nader, too.

The point isn’t that we should all send the man a card. The point is that just because the airline has a policy that it has turned into fine print doesn’t mean that it’s fair, or that you can’t object to it. If you object loudly enough, and in the proper places, you might even change the fine print.

It is worth noting that the airline that Mr. Nader was to fly that day in 1972 was Allegheny, which later became US Airways. But if there was any institutional memory about this episode at the carrier, which is now based in Tempe, Ariz., it was not evident. In March, Mr. Nader sent a letter to its chief executive, Doug Parker, who, according to Mr. Nader, did not respond. Then Mr. Nader called Mr. Parker twice. Nothing.

“It’s like trying to reach Fort Knox,” he said. “You can’t possibly get these guys.”

Question: How is it possible that the name “Ralph Nader” did not ring the equivalent of air-raid sirens at the office of US Airways?

Mr. Nader eventually spoke to an assistant to the general counsel of the airline and mentioned three words: small claims court.

That did it. On June 6, Mr. Nader received a letter from a customer relations rep named Kristy Garden, who wrote, “After review of your file, due to the circumstances and as a one-time courtesy, I have authorized a refund of your tickets.” And he got back his $300 in cancellation fees.

The Haggler also heard from Valerie Wunder, a spokeswoman for US Airways, who said it evaluated customer requests “on a case-by-case basis and so were able to resolve Mr. Nader’s issue.”

Now we come to the moral of the story.

“Small claims court is an unknown venue to most people,” Mr. Nader says.

In recent years, small claims courts have become the favorite places for collection companies to file for default judgments on an assortment of credit card and auto loan debts. But that was not their original purpose. When they blossomed in the 1960s, they were meant to be consumer-friendly places for disputes under a certain ceiling — today, $5,000 or so is typical.

“I read a lot of consumer books, and almost all of them completely ignore small claims court,” Mr. Nader says. “Few people know how simple the forms are, how accommodating the judges are. A lot of them are even open at night.”

The Haggler hears a couple times a month from people who have just been to small claims court, and usually they are writing to chest-thump about their victories. Why mention that? Because otherwise you might think this US Airways episode proves only that the airline was smart enough to dodge the P.R. calamity that fighting Mr. Nader in court would surely have been.

Not so. To win in small claims court, or, as happened here, to triumph just by threatening to file there, you don’t have to be named Ralph Nader.

Though it couldn’t hurt.

E-mail: haggler@nytimes.com. Keep it brief and family-friendly, and go easy on the caps-lock key. Letters may be edited for clarity and length.

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Reconstruction Lifts Economy After Disasters

But a new phase is slowly beginning in some hard-hit areas: reconstruction, which past disasters show is typically accompanied by a burst of new, and different, economic activity. There is no silver lining to a funnel cloud, as anyone who survived the tornadoes can attest, but reconstruction can help rebuild local economies as well as neighborhoods.

More than a tenth of the businesses in Tuscaloosa, Ala., were badly damaged or destroyed in April when a tornado swept across a 5.9-mile stretch of the city, and nearly 6,000 Alabamians have filed storm-related claims for unemployment benefits.

An even deadlier tornado laid waste to roughly a quarter of the businesses in Joplin, Mo., on May 22, wiping out some of the big-box stores the city relies on heavily for sales tax receipts. The flooding Mississippi River closed all nine riverboat casinos in Tunica, Miss., this spring, leaving 4,600 hotel rooms empty for weeks and depriving the county of so much tax revenue that it had to reduce its workers’ hours.

But there are already stirrings of economic activity. Home Depot, whose store in Joplin was destroyed, began selling lumber and other supplies from a parking lot there on Tuesday as it prepared to open a 30,000-square-foot temporary store.

Tamko Building Products was doubly hit. Its plant in Tuscaloosa had to halt production for weeks after the April 27 tornado destroyed a warehouse, blew out windows and knocked out power. Then in May disaster struck closer to home: Tamko’s headquarters are in Joplin, where the company was founded in 1944. The tornado that tore through Joplin left Tamko’s facilities undamaged, but destroyed the homes of roughly 20 of its employees.

But as much as it was buffeted by the storms, Tamko, which donated $1 million to the Greater Ozarks Chapter of the American Red Cross, is well-positioned to prosper once reconstruction fully kicks in. Its main product — roofing shingles — is always in demand after a tornado.

No one would suggest that disasters are a desirable form of economic stimulus. But economists who have studied the impact of floods, tornadoes and hurricanes have found that after the initial anguish and huge economic disruptions, periods of increased economic activity frequently follow as insurance money and disaster relief flow in to jump-start rebuilding.

But reconstruction also attracts vultures who prey on the desperate, through price-gouging or fraud. The Kentucky attorney general, Jack Conway, accused the Marathon Petroleum Company of price-gouging in April when it raised gasoline prices steeply after the flooding Ohio River led to a state of emergency. The company denied the accusation, and a judge denied Mr. Conway’s request to force the Marathon to lower its prices.

Alabama’s attorney general, Luther J. Strange, recorded a public-service announcement warning people not to be conned into paying steep “up-front” fees for construction work or to be lured by “today-only” prices.

“Let us be vigilant against unethical, unprofessional contractors who seek to take advantage of our citizens in their time of need,” Mr. Strange says in the announcement.

Even as the natural disasters eliminated thousands of jobs, the needs of recovery have created others. Companies like Unified Recovery Group, which is clearing storm wreckage in Alabama and Tennessee, are hiring workers and subcontractors to cart off debris. Construction companies are hiring, too. In Tuscaloosa, James E. Latham, chief executive officer of WAR Construction, said his firm had rehired workers who had been laid off during the downturn and had added new employees to prepare for the work ahead, like rebuilding an elementary school.

As insurance claims are paid, a further economic stimulus lies in the shopping that some people will do to replace lost goods.

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