Does res judicata preclude parties from re-litigating an issue that has been decided on the merits?

Canada (Federal), Canada

The following excerpt is from Régie des rentes du Québec v. Canada Bread Company Ltd., [2013] 3 SCR 125, 2013 SCC 46 (CanLII):

Once all avenues of appeal have been exhausted, the authority of res judicata applies to preclude parties from re-litigating an issue that has been decided on the merits. This is so even if the legislature has changed the law retroactively and, as a result, the final judgment now contains an error in law. Indeed, “the authority of res judicata exists even when there is an error in the judgment” (Roberge v. Bolduc, 1991 CanLII 83 (SCC), [1991] 1 S.C.R. 374, at p. 403).

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