Everything you say is true however the contract also says UA has the right to remove any passenger from a plane if they need the seats for other people.
Might not seem fair or right but currently thats the law.
Where do you see this?
People have naturally assumed for years that this is the case therefore it most be true and the airlines haven't been legally challenged until now. Seems as if my package on FedEx has more rights.
By United's own Carriage of Contract it is clear that they have separate clauses for Denied Boarding and Refusal of Transport. This gentleman had already been issued a ticket and he had already boarded. Therefore everything relating to overbooking and involuntary denial of boarding does not apply.
It will be up to judge/jury to decide if UAL has breached the Carriage of Contract. Like other posters, I also think that this will be settled out of court to prevent a precedent being set, and opening the door to multitude of lawsuits by other passengers.