Case Background:
Continental Appraisals Ltd. was the first mortgagee of a property in Grand Forks, British Columbia, originally owned by Frances Jean Walbey Canfield. Mrs. Canfield transferred the property to Bronze Wines Ltd., a company led by Scot Darville Stewart, under an unconscionable agreement. The property was later mortgaged, and both Continental and Air Touch Communications Ltd. initiated foreclosure proceedings.

Legal Issues:
The primary legal issues revolved around the doctrine of res judicata, specifically cause of action estoppel and issue estoppel. Continental sought to strike amended responses by Mrs. Canfield and Air Touch in the foreclosure proceeding, arguing that the issues they raised had already been litigated. The court also examined whether raising the Form A transfer issue in the foreclosure proceeding constituted a collateral attack on the earlier judgment.

Court's Decision:
The chambers judge found that while the elements of cause of action estoppel were established, special circumstances warranted allowing Mrs. Canfield to litigate the Form A transfer issue to avoid an injustice. The appeal by Continental Appraisals Ltd. was dismissed, upholding the decision to permit further proceedings on the validity of the Form A transfer.

Costs:
Continental Appraisals Ltd. was granted double costs from the date of a formal offer to settle in the related Canfield v. Bronze Wines Ltd. case. The exact amount of the award was not specified in the provided excerpts.