Law360 Canada ( May 8, 2026, 11:36 AM EDT) -- Appeal by appellant from a judgment of the Newfoundland and Labrador Court of Appeal which upheld a judgment ordering that the residue of proceeds resulting from the exercise of a power of sale be paid to the respondent. Kenmount Terrace (the “Property”) was owned by the respondent and was encumbered by numerous mortgages and claims. One of the mortgages on the Property held by the appellant went into default. Following a public auction conducted pursuant to power of sale proceedings, the appellant purchased the Property. In 2016, two parties which held encumbrances on the Property applied for a review of the appellant’s accounting of the sale proceeds (2016 applications). In 2017, the application judge rendered a decision in which he excluded several claims from the accounting, notably a $4 million mortgage held by the appellant. The appellant appealed the application judge’s decision but it was upheld by the Court of Appeal. The respondent brought an application seeking an order that an unrelated encumbrance be paid out and that the respondent was to receive the surplus from the sale proceeds (2019 application). The appellant argued that the application judge in 2017 had not definitively determined that it was not entitled to payment from the sale proceeds under the $4 million mortgage. Relying on his findings from 2017, the same application judge rejected the appellant’s argument. The majority of the Court of Appeal upheld the decision. It found that the doctrine of res judicata had been properly raised before the application judge and that the same doctrine applied to bar the appellant from relitigating its claim for entitlement to payment from the sale proceeds under the $4 million mortgage. The main issue on appeal was whether the appellant was barred from relitigating its claim for entitlement to payment from the sale proceeds under the $4 million mortgage....