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My last column discussed
precision in legal drafting. I didn't have this
great example then.
Punctuation matters. If we
needed reminding, a recent Canadian case surely
makes the point - a $2 million point, all
turning on the interpretation of one comma in
one sentence.
My friends on an
international plain-language listserv and
Cincinnati lawyer John Fisher III sent me the
details.
A costly comma
Rogers Communications, a
cable company, and Aliant Inc., a
telecommunications company, signed a contract.
Rogers thought that Aliant had agreed to let
Rogers string its cables on Aliant poles across
the Maritime Provinces of Canada for $9.60
(Can.) a pole. Seems simple enough. But one
sentence proved troublesome.
The disputed sentence: "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."
Of course, the dreaded
parenthetical numericals should be forever
banned (see Rule 6), and the "unless and
until" is a needless couplet (see Rule 21).
But there are worse problems.
How many
years?
Rogers believed it had a deal
for five years certain, then an automatic
renewal for consecutive five-year terms, unless
one party notified the other, at least one year
before a five-year term was to start, that it
wanted to terminate. At first blush, that seems
like a reasonable interpretation.
But Aliant sent a termination
notice after one year. It then offered to make a
new deal, at $28 a pole. The difference over
five years was $2.13 million Canadian, almost $2
million in US dollars.
The people at Rogers, on
receiving the termination notice, probably had a
conniption. Rogers appealed to the body having
jurisdiction over the dispute, the
Canadian Radio-Television and
Telecommunications Commission (CRTC).
Clear and
unambiguous
Rogers asserted that the
meaning was clear - that there was a definite
term of five years. And it said that this was
clearly the parties' intent. Aliant countered
that the plain meaning of the contract supported
its construction, and thus there was no need to
go further - parol evidence of intent is
inadmissible if the language is clear.
The Commission held for
Aliant: "the wording . . . is clear and
unambiguous. The Commission notes that based on
the rules of punctuation, the comma placed
before the phrase 'unless and until terminated
by one year prior notice in writing by either
party' means that that phrase qualifies both the
phrases '[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 the phrase 'and thereafter
for successive five (5) year terms.' "
Further, "the phrase
'unless and until terminated by one year prior
notice in writing by either party' does not
specify any triggering event from which to give
notice. The Commission agrees with Aliant
Telecom that had the intention been to limit the
right to terminate to the end of the current and
any renewal term of the SSA, clear wording would
have been included specifying by what date the
notice was required."
Thus Aliant could terminate
the agreement "at any time, without cause,
after providing one year's prior written notice
to Rogers. And the agreement terminated on 1
February 2006, one year following the date of
written notice of termination to Rogers."
You can find the decision at:
www.crtc. gc.ca/archive/ENG/Decisions/2006/dt2006-45.htm
The lesson
Precision matters in contract
drafting, as in all legal writing. The drafter
here could have avoided the problem by either
adding one semicolon or subtracting one comma.
Substituting a semicolon for the first comma or
deleting the last comma would probably have
worked, but it would still have been poorly
drafted.
Look at the original again.
Here is my revision:
This agreement is for five
years. After the first term: (1) it shall
automatically renew for consecutive five-year
terms; (2) either party may terminate the
agreement by notifying the other at least one
year before a new term begins.
Shorter and, I hope, clearer.
And many of you might think of better ways. The
point is that it's important to remove any
ambiguity.
A new motion
After reading my article on
Spellcheck mistakes, Cincinnati lawyer Tim Burke
sent me another. But this one resulted from
dictation to a new secretary. He saw that he was
about to file something called a Motion for Some
Other Judgment. Obviously, summary judgment was
intended. Tim said that even though many of us
have often wished we could file the former, he
couldn't find it in the Civil Rules.
Readability
I always show the readability
scores for the column. Statistics for this
column (excepting the quotes): 13 words per
sentence, 5 percent passive voice, and grade
level 9.8.
____________________________________
Mark Painter
has served as a judge on the Ohio First
District Court of Appeals for 11 years,
after 13 years on the Hamilton County
Municipal Court. Judge Painter
is the author of The Legal Writer: 40 Rules
for the Art of Legal Writing. It is
available from http://books. lawyersweekly
.com. Judge Painter
has given dozens of seminars on legal
writing. Contact him through his website,
www.judge painter.org.
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