United States v. Mary Te Selle

Does the savings clause in a statute of limitations preserve the government’s late-filed action to recover damages from a defaulting scholarship recipient?

I

Te Selle received a one-year scholarship award from the National Health Service Corps (“NHSC”) Program in 1981, which she applied toward her 1981-82 dental school tuition. In 1982, she received another award ' for the next academic year, increasing her total scholarship award to $45,160.20. In exchange for this award, Te Selle obligated herself to provide two years of service in a health manpower shortage area, to which she would be assigned after graduation. This period of obligatory service was undertaken pursuant to the NHSC Scholarship Program, 42 U.S.C. § 254L

Because Te Selle never performed the service she promised to undertake, the NHSC declared her in default of her scholarship obligation on March 7, 1984. In a letter dated that day, the NHSC notified Te Selle that she was required to pay stipulated damages within one year. Te Selle did not pay this amount, and the government filed suit to recover the debt on October 10, 1989.

The district court dismissed this complaint without prejudice on September 18, 1991 for…