EMJ Construction LLC v. Mikada Cabinets LLC

On March 2, 2026, EMJ Construction LLC filed a lawsuit against Mikada Cabinets LLC in a U.S. federal district court. EMJ, a general contractor on a multi-unit residential project, alleged that Mikada supplied and installed custom cabinetry that was materially defective and non-compliant with contractual specifications. The defects included warped panels, improper alignment, and use of unapproved substitute materials, causing significant project delays. EMJ sought damages exceeding $1.2 million for corrective work, liquidated delay penalties, and reputational harm. Mikada denied liability, asserting that defects resulted from improper handling by other trades and that EMJ failed to timely inspect. The case represents a classic post-pandemic construction supply chain contract dispute.

The court granted partial summary judgment for EMJ on the breach of contract claim, finding that the cabinetry materially deviated from the specifications. The liquidated damages issue proceeded to trial; the parties reached a confidential settlement during trial, with Mikada agreeing to pay $850,000 and provide replacement cabinets at a discounted rate.

The central dispute is whether Mikada Cabinets breached its supply and installation contract by delivering defective goods and whether the defects were caused by Mikada's workmanship or by intervening actions of other contractors. Additional issues include the validity of the liquidated damages clause for project delays.

The case underscored the importance of precise specification enforcement in construction supply chains amid ongoing material shortage pressures. It prompted industry calls for stricter quality assurance protocols and clearer delay liability clauses in subcontractor agreements. The litigation also highlighted the courts' willingness to enforce liquidated damages even where supply disruptions were partially attributed to broader market conditions.