Palestinians in a West Bank village are taking two Canadian companies to court for allegedly breaking international law.

Residents in the Palestinian village of Bil'in have filed a lawsuit in Montreal Superior Court against Green Park International and Green Mount International, sister companies registered in Quebec.

The Palestinians allege the companies invested in illegal West Bank settlements. They say the companies are building a neighbourhood on property that Israel seized after the 1967 war -- an action that is contrary to the Geneva Convention. The new construction apparently cuts local Palestinians off from nearly half the village.

"Basically, the village is facing a massive land grab," Michael Sfard, an attorney representing the village, told CTV.ca in a telephone interview from Tel Aviv.

Sfard said the claim was the first such suit against a private company over the issue of settlements.

"In that sense it is very unique. Whatever is decided it will be a precedent," he said.

Sfard said Israel is illegally moving its citizens to occupied territory, a specific violation of the Fourth Geneva Convention. He said the lawsuit seeks to stop further construction by the Canadian companies -- and destruction of properties the companies have already built.

A press release on a website set up by representatives of the village states that: "Bil'in also relies on the Canadian Geneva Conventions Act and the Crimes Against Humanity and War Crimes Act ... statutes (that) have jurisdiction over Canadians regardless of where in the world the offence has taken place."

Sfard said the lawsuit sends a clear message to international companies seeking to profit from settlement projects.

"(The lawsuit) serves as a blinking red light to investors and companies and private individuals who are thinking of being involved in building settlements ... maybe they'll think twice before building," Sfard said.

Village residents aren't out to make money, he said, noting they just want to protect their home.

"They resisted (their lawyers') suggestion to seek actual damages for their losses. They have said time and time again they don't want to be seen as profiting. All they want is their land back," he said.

Sfard said, however, the suit will seek $2 million in punitive damages. At issue are 250 apartments in 30 buildings.

With files from The Associated Press