In my opinion, Kizi was not obligated to pay Mr. Yong’s loanshark interest as additional damages.
To begin with, Small Claims adds “statutory interest” (presently nine 9% per annum) on all monetary awards.
Also, in cases involving breach of contract, only damages that directly flow from the breach are compensable.
Mr. Yong’s cost for his work on the garments was included in the contract price that Kizi agreed to pay. Kizi’s bad checks in payment did not mean that Kizi also agreed to pay the interest charged by the loanshark to Mr. Yong.
After all, Mr. Yong had a duty to pay his labor, and cannot pass on to Kizi his cost of borrowing to get the money to pay them.
That would not be fair.
Do you agree?