A Yukon Supreme Court justice has reserved judgment on the Kwanlin Dun First Nation's (KDFN's) application for an interlocutory injunction to halt an expansion project at the Whitehorse International Airport.

Justice Leigh Gower said he hopes to release a decision later this week.

R. Davies, counsel for the first nation, said if the construction project is permitted to continue, it would cause "irreparable damage" to his client.

"My client is very dissatisfied that this project is going ahead," Davies told court during a lengthy session Monday afternoon.

He said the Yukon government is in breach of its land claim agreement with the first nation by not providing opportunities for economic development in conjunction with the airport expansion.

Provisions of the land claim agreement stipulate that the government must provide Kwanlin Dun with an opportunity to negotiate its participation in government projects on Kwanlin Dun traditional territory worth more than $3 million.

This provision is designed to foster economic self-reliance for the first nation and facilitate co-operative relationships between the Yukon government and the first nation, said Davies.

The case is an issue between government and government, said Davies, not between government and citizen.

By way of background in the case, Davies said his client was first notified of the plan for the airport expansion in March 2007.

In June 2007, the Yukon government met with the first nation to discuss the scope and cost of the project, which is estimated at approximately $15.7 million, said Davies.

At this meeting, said Davies, the project leader of the expansion, said he thought there would be "minimal opportunity" for the first nation to benefit from the project.

Project leader Michael Cowper had "already kind of made up his mind. There's nothing in it for KDFN," said Davies.

It was inappropriate for Cowper to have reached this conclusion before attending the meeting, Davies added.

In March 2008, the government met with the first nation again to discuss the project and to negotiate the terms of a Yukon Asset Construction Agreement (YACA) for the project. But the Yukon government "would not consider providing any benefit to KDFN," said Davies.

"This was not exactly encouraging to KDFN."

Davies also noted that a copy of the YACA for the project was not provided to his clients until two weeks ago.

"We have the classic failure to communicate," he said.

Davies said the "balance of convenience" is in his client's favour.

That means that if the injunction to halt construction is granted, the government would only suffer from higher costs, whereas his client would suffer "irreparable harm" if the injunction is not granted.

"This case is not about money. (Kwanlin Dun's) claim is neither frivolous nor vexatious," said Davies.

The case is about economic participation and self-reliance, he said.

The government had not provided the first nation with benefits that are commensurate to the scope of the airport expansion project, he added.

In her submission, government lawyer Penelope Gawn argued that the criteria for granting an interlocutory injunction have not been met.

Gawn argued that it's "simply not correct" to claim that the government and the first nation are equal partners.

She explained the government has the right to waive the creation of a YACA if there are overriding health or environmental concerns, for example.

Gawn disagreed with Davies' assessment of the March 2008 meeting between the two parties.

She argued that Cowper did not unilaterally say to officials from the first nation, "There's nothing in this for you."

The government instead offered "non-traditional" benefits for the first nation in keeping with the provision of the land claim agreement.

"The focus of Kwanlin Dun at the time was on non-traditional methods of economic development outside of the YACA," said Gawn.

She read from the minutes taken at the meeting to illustrate that both the government and the first nation agreed that Kwanlin Dun's capacity does not lend itself to a project of the nature of the airport expansion.

Gawn said the first nation has "limited capacity" to participate in the construction project, so other ways of furthering economic development, such as leasing out some of the first nation's extensive land holdings, were discussed.

Because of these opportunities for other projects, Gawn argued, the airport expansion project as is will not cause the first nation "irreparable harm."

Gawn said there are greater public concerns if the injunction is granted.

Those include a higher cost to the Yukon government, impacts on tourist traffic, and the potential loss of the international designation of the Whitehorse airport.