PROVIDENCE — The case against Johnston’s open-arms reception of an FM Global construction project is in the hands of Superior Court Judge Michael A. Silverstein.

In closing arguments yesterday, a lawyer representing the insurer’s landlord, CapLease, asked Silverstein to halt all construction at the site of the new headquarters, asserting that Johnston officials had helped FM Global trample on the rights of local property owners by rushing certain permits for the $60-million project.

The town’s lawyer, William Conley, argued that the town has halted the project from moving forward, to accommodate Cap-Lease’s appeal, but it must allow the completion of foundations to protect public safety.

Silverstein is scheduled to make his decision Tuesday morning. The issuance of a temporary restraining order could deal a major blow to Mayor Joseph M. Polisena’s efforts to create new jobs and expand the tax base by expediting large economic development projects.

The lawyers for CapLease — a landlord that stands to lose at least $10 million a year in rent if FM Global leaves its Providence building on schedule next year — are putting Polisena’s fast-track development policies to the test.

FM Global’s project has been moving along speedily since the company proposed construction of a new headquarters last fall.

The company’s master plan application was filed in January and approved on Feb. 5. Its application for the next phase of the process — preliminary approval — was filed Feb. 12 and approved March 4.

Later in March, FM Global secured building permits — for the foundation and erosion-control work — before the time for appealing the earlier planning decisions had expired.

Town officials didn’t have a problem with that, but they did insist that FM Global cover the town’s legal exposure if any claim resulted. FM Global could proceed, but at its own risk.

By April 6, Governor Carcieri and other officials were on the site for a groundbreaking ceremony.

Two days earlier, CapLease had filed its appeal, accusing Johnston officials of blocking timely access to key filings and hampering the company from representing its rights as a local property owner.

Johnston’s zoning ordinance triggers an automatic stay of all proceedings whenever someone appeals a planning or zoning decision.

Such language can be found in municipal ordinances across Rhode Island and in state law.

Lawyers on both sides of the case acknowledge that such a stay should freeze construction activity, barring one caveat: if a building official finds the stay would cause “an imminent peril to life or property.” Under the law, builders may continue with appropriate construction in that instance.

Despite CapLease’s appeal, Johnston officials did not issue a cease and desist order until April 21.

The order basically told contractors to finish the foundations to protect public safety and then stop work.

CapLease’s legal team says that allowing FM Global to continue the project was the town’s real motivation.

In court yesterday, the landlord’s lawyer, William Dolan, emphasized that the town’s Zoning Board didn’t certify the stop- work order as required until May 1 — after the landlord raised the issue in its lawsuit.

“For 26 days, we got the short end of the stick, judge,” Dolan said.

“The stay is designed to make sure that someone gets the opportunity to be heard,” he added. “Justice delayed. Justice denied.”

Dolan also doubted that finishing the foundation work would protect safety, eliminating, for example, a 40-foot deep hole with foundations, concrete, forms and exposed bars.

FM Global’s engineer, David J. Odeh, had testified that the stability of the structure might be affected if the foundation remained incomplete for “an extended period of time.”

An “extended period” is not “imminent,” he argued.

Conley and FM Global’s lawyer, Gerald J. Petros, argued that finishing the foundation work to protect safety was a wise move.

Meanwhile, the plaintiffs will have a chance to argue the case Wednesday when zoning officials convene to hear the appeals.

“I just don’t think there is a scintilla of evidence on the record that there has been irreparable harm,” Conley said.

Such harm is a standard that judges use when mulling temporary restraining orders.

Dolan argued that being “cut off from constitutional rights is an irreparable injury.”

He also argued for the public’s sake, asserting that local officials must be forced to follow the law.

“If that’s not public interest,” he said, “I don’t know what is.”

mreynold@projo.com