If you've been keeping your Subclipse Eclipse plugin up to date on Leopard, sooner or later you will be met with a situation where your svn cli client will report an incompatibility and lead you to upgrading it.
The problem starts when you download and install the universal binary at CollabNet.
Installation goes well, but it doesn't upgrade the original installation you have on your machine.
The simplest solution found in the comments in this post was to override path so that /usr/local/bin/ takes precedence over /usr/bin/ . In addition, I took the additional step of moving the original svn binaries from /usr/bin to a backup folder, to avoid any possible conflicts.
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