Linklaters is being sued in the French courts by former client Europrop – an Irish Stock Exchange-listed real estate group – for an alleged breach of duty.

The case relates to allegations by Europrop that the magic circle firm improperly drafted security agreements dating back to 2007.

In 2007, a Linklaters team advised Citibank and Europrop on the issue of commercial mortgage-backed securities (CMBS) worth €486m, secured against a European real estate portfolio.

One of the securities' underlying loans – a €61.9m agreement referred to as the 'Signac Loan' – was later identified as defective, for which Europrop says Citibank was required to repurchase.

After Citibank declined to repuchase the loan, Europrop took Citibank to court, claiming the defects in the underlying security constituted "a material breach of certain loan warranties" under the CMBS portfolio.

Citibank denied the claim, but – according to Europrop – admitted that there were defects in the security. Eariler this year, the French court sided with Citibank, a decision which is being appealed by Europrop.

Consequently, Linklaters' former client has taken the decision to issue claims that lawyers at the firm breached "their duty of watchfulness in writing and their obligation to achieve a valid and efficient agreement".

The proceedings, taking place in the High Court of Paris, have been suspended until the French courts have reached a decision on Europrop's appeal against the Citibank decision.

Citibank has until mid-August to oppose the appeal, a hearing for which has been scheduled for 14 October.

Linklaters declined to comment.