Legal Blog

Compensation and Compliance Matters- 2.18.14

Open-Ended Loans Many of you have already heard about the decision in Virginia Federal Court where Prospect Mortgage won a jury trial by applying the outside sales exemption to a loan officer suing Prospect for minimum wage and overtime. Before everyone scrambles to read their contracts, a couple things need to be kept in mind. First, this was a jury trial. This means Prospect lost on summary judgment—where the court can dismiss claims if it finds the plaintiff cannot prevail as a matter of law. It follows that Prospect thus paid a substantial amount in legal fees (easily exceeding $100,000) and had to incur the risk that an unpredictable jury could have found against it, exposing it to all of the plaintiff’s legal costs. Click here to read the entire blog by Ari Karen on National Mortgage News