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by Mike Caswell

Lundin Gold Inc. has filed a lawsuit in the Supreme Court of British Columbia over a legal problem that left it responsible for paying a royalty on a property that it no longer owns. The company says that its former law firm, Cassels Brock & Blackwell LLP, was negligent in handling a 2010 transaction. The suit seeks appropriate damages.

The allegations are contained in a notice of claim that Lundin Gold filed at the Vancouver courthouse on Monday, Dec. 4. The sole defendant is Cassels Brock, a law firm that represented Lundin Gold when it sold its interest in a gold project in Russia. At the time of the sale, Lundin (which was known as Fortress Minerals Corp.) had been a long-time client of Cassels Brock.

The property at issue is the Svetloye project, which Lundin had acquired in 2003. As part of the acquisition, Lundin had agreed that it would pay a royalty on any gold production from the property to the vendor. That vendor was an entity called RG Russia Inc.

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