Whitehorse's acting city manager says a lawsuit filed against the city could decide whether it's the Quartz Mining Act or the Municipal Act that takes precedence over the other.

H. Coyne & Sons Ltd. announced Wednesday it has filed a lawsuit against the city and Raven's Ridge Development.

The company argues the city's subdivision approval for the second phase of Raven's Ridge near the Fish Lake Road will mean access is denied to their mineral rights on the land.

"The Coynes obtained the mineral rights to this property in 1998 long before the City of Whitehorse designated the land as Green Space in 2010 and then rezoned it in 2012 to allow for the Raven's Ridge subdivision to expand,” Amanda Leslie, a local spokeswoman for Coyne & Sons, said in a statement.

"If the city's decision to rezone and subdivide the lots stands, Coyne & Sons will be unable to access its mineral claims and explore and fulfill the potential of the property.”

Coyne & Sons have subsurface rights to the land through Crown grants, land that was granted by the Crown. There have been no such grants issued since the 1940s.

"Coyne & Sons has been forced to take action as the City of Whitehorse and Raven's Ridge Development did not consult with the company prior to the zoning change last year and the subsequent subdivision,” Leslie said.

"The Coynes have been excellent corporate citizens and good neighbours to the Whitehorse Cross Country Ski Club for over 30 years and are committed to negotiating with the parties rather than pursue legal action.”

Acting city manager Brian Crist said Wednesday Coyne & Sons has been clear from the beginning where they stand on the matter and has made presentations to council about it so the lawsuit comes as no surprise.

The lawsuit concerns specific lands and parties like the city and Raven's Ridge.

The broader issue that has come up for the city on a number of occasions, however, is one of conflicting legislation in the Municipal Act (which gives municipalities their authority in the territory over surface land) and the Quartz Mining Act (which deals with subsurface rights).

Both are territorial acts, but there is conflicting legislation around surface and subsurface rights and access to land.

Crist said the city is mandated by the Municipal Act and, thus follows that, while Coyne & Sons would follow the Quartz Mining Act.

Crist noted that while it isn't the city's wish to have the issue sorted out through a court case directed at the city, this could be the case that decides it.

The statement of claim filed by Coyne & Sons seeks damages, if the development denies the company access to the claims and the city expropriates the land, for:

• the loss of the value of mineral resources in the claims;

• exploration costs on the claims;

• annual taxes that have been paid on the claims;

• the loss of opportunity and profit; and

• legal costs "and other professional fees” incurred due to the "expropriation.”

Crist said the matter is with the city's lawyers and a response to the legal action is being prepared.

The 10 lots up for sale (there are another six showing on the map that are not listed for sale) in the second phase of Raven's Ridge are priced between $179,900 and $299,900 ranging from 1.24 acres to 1.73 acres. They are all zoned Country Residential 2.

Neither Leslie nor Raven's Ridge proponent Mark Radke could be reached for further comment.