It seems the problem had existed before in Ubuntu 14.04 and Dell
recommended using proprietary drivers for trackpad. Here is the Dell KB
with the info: http://www.dell.com/support/article/us/en/19/SLN297219/EN

Just to experiment I tried doing the same with my Ubuntu 16.04 and
installed the drivers as instructed in the link. I haven't faced any
issues yet (its been two days).

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https://bugs.launchpad.net/bugs/1576844

Title:
  Touchpad/Trackpad freezes then eventually unfreezes (repeatedly)

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