United States v. Hector L. Westerband-Garcia, AKA Hector L. Westerband

We must decide whether the government is barred by a statute of limitations from bringing an action to recover damages from a defaulting scholarship recipient.

I

In 1979, Hector Westerband-Garcia signed an agreement to participate in the National Health Service Corps (“NHSC”) Scholarship Program. As a NHSC Scholarship recipient, he received money from the United States to pay for medical school and in return agreed to serve as a doctor in a hospital designated by the government. He received $13,253 under this agreement.

Westerband-Garcia graduated from medical school in December 1982. The NHSC Scholarship Program required him to apply for a deferment of his scholarship service and to complete at least one year of approved graduate training. 42 C.F.R. § 62.9 (b). Failure to apply for the deferment would result in a breach of the scholarship contract. Id. Westerband-Garcia failed to complete the deferment form. In a letter dated September 30, 1983, the government informed him that he was in default of the contract and was obligated to pay damages within one year. However, that letter did not provide Westerband-Garcia with a specific debt calculation as to the amount of damages he…