Yukon Supreme Court Justice Leigh Gower has granted an interlocutory injunction to stop the territorial government from continuing with the public tender process for the planned expansion of the Whitehorse International Airport terminal.

The injunction is to be upheld pending a hearing of the Kwanlin Dun First Nation's (KDFN's) petition and the resulting judgment from the hearing.

Gower suggested both sides in the case arrange a time for the hearing as soon as possible.

In the 23-page document released Friday, Gower stated that while the government is "free to ultimately dictate the terms and provision of a YACA (Yukon

Asset Construction Agreement) ... the final product must still be one which provides 'benefits commensurate' with the project ... In other words, YTG is not free to impose any conditions it sees fit."

Gower sided with arguments presented on behalf of KDFN.

He concluded that the first nation "has discharged its onus by establishing that, if this interlocutory injunction is not granted, then it will suffer irreparable harm if the project goes ahead without its participation through a properly negotiated YACA."

Rhys Davies, counsel for the KDFN, had argued during an earlier hearing that his client would suffer "irreparable harm" if the construction project is permitted to proceed without further negotiation.

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

He said the 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 government and the first nation, said Davies.

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 said there would be greater public concerns if the injunction is granted.

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

But Gower wrote in the decision that the "balance of convenience" in the case favours the KDFN, meaning that they would be more greatly inconvenienced than the government if their interests are not met.

The government is not commenting on the judge's decision.

A representative of the Yukon Contractors Association, which has expressed its concern about the potential delays in the airport project, was unavailable for comment this morning.