Kevin Touhey
May 2026
The winning entry in the SCL’s Hudson Prize, published in the SCL Journal: Spring 2026 and presented to a meeting of the SCL in London on 5 May 2026
The paper poses the question: when does a victim of negligence suffer harm, and so accrue a cause of action? Over sixty years ago Diplock LJ took the view that harm was suffered once construction was complete, and the building owner acquired a defective building instead of a sound one. The paper examines the judgments since then and the principles relevant to determining when financial loss occurs in the tort of negligence. It considers the relevance of each of the events identified by the courts of Australia, New Zealand, Canada and Hong Kong as indicating the occurrence of financial loss in the context of a defective building, and seeks to answer the question.
Introduction – A note on terminology – The relevant principles – Harm occurs when a measurable financial loss arises – A contingent loss causes no harm – The candidate dates – Manifestation as physical damage – Discoverability of the defect – Acquisition of the building – Conclusion
The author: Kevin Touhey is an Associate Solicitor at White & Case LLP
Text: 13 pages