Rogers Communication, a cable company, and Aliant Inc., a telecommunications company, signed a contract whereby Aliant agreed to let Rogers Communications string its cables on Aliant’s poles for $9.60 a pole. The contract contained the following provision

Rogers Communication, a cable company, and Aliant Inc., a telecommunications company, signed a contract whereby Aliant agreed to let Rogers Communications string its cables on Aliant’s poles for $9.60 a pole. The contract contained the following provision:

“This agreement shall be effective from the date it is made and shall continue in force for a period of five (5) years from the date it is made, and thereafter for successive five (5) year terms, unless and until terminated by one year prior notice by either party.”

Rogers thought it had a solid deal for at least five years unless Aliant gave notice at least one year before the end of the five-year term that it wanted to terminate the contract. However, Aliant sent a termination notice just one year into the contract, offering to lease its pole for $28 a pole. The difference between the original $9.60 a pole and the $28 a pole came to $2.13 million over the course of five years. Rogers sued. Who do you think won and why?

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