Defects unresolved. Can owners keep the lawsuit going?

A JMB has sued the developer over a common property defects claim. Management then changes, but the incoming MC does not take steps to continue the claim. Does that leave the owners without an effective party to pursue the lawsuit?

In Badan Pengurusan Bersama Royal Strand & Lovell v Country Garden Danga Bay Sdn Bhd [2026] MLRHU 2083, the Johor Bahru High Court allowed three parcel proprietors to join an existing defects action as co-plaintiffs. The decision concerned who could participate in the lawsuit. It did not decide whether the developer was responsible for the alleged defects.

What happened to the common property defects claim?

The JMB commenced proceedings in February 2023 over alleged defects and incomplete works affecting the common property. The complaints included water leakage, damaged walls and ceilings, defective external paintwork and unsafe electrical works. The developer denied liability.

The development subsequently became involved in a dispute over the MC’s first annual general meeting. An injunction restrained implementation of the meeting’s resolutions, and the Commissioner of Buildings intervened in the management of the development. A consent judgment in August 2025 eventually provided a framework for the handover.

Three owners then sought to join the defects lawsuit. They had participated in identifying and documenting the alleged defects, and were concerned that the claim would not be continued by the MC.

Why did the court allow the owners to join?

The developer argued, among other things, that the JMB had already been dissolved and that rights concerning the common property belonged to the MC.

The court examined the unusual history of the handover. This was not an ordinary transition following an undisputed first AGM. The challenged meeting, injunction, intervention by the Commissioner of Buildings and subsequent consent judgment were material to its conclusion that the JMB had sufficient legal standing when it applied to add the owners.

The owners also had a direct interest in the condition of the common property. Their proposed participation concerned the same development, alleged defects and evidence already before the court. Allowing them to join would help preserve the existing action and avoid separate lawsuits over substantially the same issues.

A further concern was the alleged connection between members of the MC’s committee and the developer being sued. The court considered that the evidence disclosed a sufficiently real risk of conflict to justify protecting the continuation of the proceedings. It did not make a final finding of misconduct against the MC or its committee members.

Simply calling the owners as witnesses would not address the problem. A witness gives evidence; a party to the lawsuit can give instructions and take steps to pursue the claim.

What does this mean for JMBs, MCs and owners?

An ongoing defects lawsuit needs attention during a management handover, alongside the accounts, records and maintenance responsibilities. The parties should identify who will continue the proceedings, preserve the supporting evidence and address any necessary changes to the parties in court.

For owners, this decision illustrates a possible route where an existing common property defects claim is at risk during a disputed transition. It does not give every owner an automatic right to take over litigation or bypass the MC.

The court also did not permit a dissolved JMB to continue suing indefinitely. Its ruling depended on the particular circumstances before it. Whether the defects were proved, whether the developer was liable and who would ultimately receive any relief remained matters for trial.

Subsequent development: A stay of proceedings pending the developer’s appeal against the joinder order was reported in August 2026. The discussion above explains the High Court’s reasoning, rather than a final appellate determination of the parties’ rights.

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Strata committee dispute: can the court order an immediate handover?

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