The Yukon Hospital Corporation faces its first major lawsuit related to construction of the new Watson Lake hospital.

Lawyers for the B.C. company RL 7 Mechanical have filed a $1 million claim in Yukon Supreme Court. The company says the contractor, Dowland Construction, failed to pay for more than a million dollars in increased costs on the job.

Dowland is the contractor building two new Yukon hospitals, the one in Watson Lake, the other in Dawson City. Both hospitals are tentatively scheduled to open next month.