The appellant appealed a Small Claims Court judgment ordering him to pay $5,814.40 in interest and $5,246.50 in costs on a personal loan.
The Divisional Court found the trial judge made a palpable and overriding error by awarding compound interest at 24% per annum on an outstanding interest balance of $1,840, as there was no evidence of an agreement for compound interest.
The court also set aside the trial costs award, noting the respondent's limited success and conduct that lengthened the proceeding.
The appeal was allowed in part, reducing the judgment to $1,840 plus post-judgment interest.
