We just received an order in our Hilltop case denying the defendant’s motion to dismiss and compel arbitration. The case alleges independent contractor misclassification on behalf of a group of loan file reviewers. Our clients reviewed files as part of a settlement between the U.S. and 14 large banks, examining files to make sure the proper foreclosure procedures were followed.
The Court denied the motion to compel arbitration because the contracts at issue contained a survival clause, which stated that certain parts of the contract survived the termination of the agreements. The survival clause did not mention the arbitration provision, and the Court concluded that the arbitration clause did not survive the agreement’s termination.