George B. Archibald and Remedios Arceo Archibald v. Pan American World Airways, Inc.

Mr. and Mrs. George B. Archibald appeal a district court order directing a verdict for Pan American World Airways, Inc. (Pan Am). The District Court found that the Archibalds had failed to present a prima facie case of undue or unreasonable preference or unjust discrimination in violation of 49 U.S.C. § 1374 (b). We reverse and remand.

On August 2, 1968, the Archibalds made two economy reservations for Pan Am’s Flight 801 on August 6 from Tokyo to Guam. Pan Am accepted and confirmed the reservations, and told the Archibalds no further confirmation was necessary. On August 6, the Archibalds checked in at the airport nearly an hour early, and received seat assignments. When they attempted to board the plane, however, they and 28 other passengers were asked to step aside. Many of these passengers eventually enplaned, but the Archibalds and a dozen others did not. Three passengers who did go aboard made their reservations after the Archibalds had made theirs.

Pan Am then told the remaining passengers that the flight had been oversold, and that they would not be able to go. The airline provided hotel accommodations for the bumped passengers, tendered a voucher for payment of denied…