The France defender is claiming £11.5m in unpaid wages from when he was charged in August 2021 and suspended without pay by City.
Mendy, 30, was cleared in 2023 of a series of rape and attempted rape charges made against him.
The club continued paying Mendy after his first arrest in November 2020, but argued they did not have to after he was charged as his bail conditions – one of which prevented him from going near the club’s stadium or training ground – and a Football Association suspension meant he was not able to perform his contractual duties.
