Developer gets stay in Country Garden Danga Bay condo defects suit

In a high-stakes legal battle over alleged defects at the Country Garden Danga Bay condominium project, the developer has secured a stay of proceedings pending an appeal to the Court of Appeal. The case, brought by the Joint Management Body (JMB) of Royal Strand & Lovell high-rise residential towers and individual parcel owners in 2023, centers on the issue of whether the JMB and individual owners have the legal standing to sue the developer after a management corporation was established.

Judicial Commissioner Budiman Lutfi Mohamed granted the stay today, citing the pending appeal as a threshold issue that could significantly impact the proceedings. The court expressed concern that allowing the trial to proceed before the appeal decision could be wasteful, consuming judicial time, witness attendance, expert preparation, and litigation costs that could be futile if the appeal were ultimately successful.

The stay also acknowledges the legitimate interest of individual owners in expediting the resolution of the dispute, given the ongoing delays caused by the transition from the JMB to the management corporation. Country Garden Danga Bay Sdn Bhd, represented by Leonard Yeoh and Chen Mei Yan, seeks to continue the proceedings, while the JMB and individual proprietors, represented by K Hematharshini, are challenging their legal capacity to sue under the Strata Management Act 2013.