Generally in Canada, when an issue goes to small claims civil court, one asks the judge to award payment of the monies owed, as well as the costs of bringing the suit (not sure if cost of hiring lawyer are included in that, but I don't think so).
As for the penal damages, I'm somewhat in the middle on them. In cases where there is intentional wrong doing (as opposed to a disagreement on the interpretation of a contract or similar), there should be punitive charges, but these should NOT go to the plaintiff. They should go to a public works project of some sort, and/or involve community service. To award such damages to the plaintiff just encourages everyone in society to be lawyer happy.
In other words, I think the plaintiff is only entitled to what is owed him, the defendant should possibly (depending on circumstances) be required to pay more. A system such as this would allow fair punishment, without encouraging everyone to lawyer up in the hopes of a huge penal settlement.