Mangual v. United States

27 Fed. Cl. 480, 1993 U.S. Claims LEXIS 277, 1993 WL 16000
CourtUnited States Court of Federal Claims
DecidedJanuary 27, 1993
DocketNo. 566-88
StatusPublished
Cited by1 cases

This text of 27 Fed. Cl. 480 (Mangual v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mangual v. United States, 27 Fed. Cl. 480, 1993 U.S. Claims LEXIS 277, 1993 WL 16000 (uscfc 1993).

Opinion

ORDER

MOODY R. TIDWELL, III, Judge:

This action is before the court on defendant’s motion to dismiss for lack of subject matter jurisdiction, and the parties’ cross-motions for summary judgment. For the reasons set forth below, the court grants in part and denies in part defendant’s motion to dismiss, denies plaintiff’s motion for summary judgment, and grants, in part, defendant’s motion for summary judgment.

FACTS

In 1978, while a medical student at the University of Puerto Rico, plaintiff applied for and received a scholarship under the National Health Service Corps (NHSC) Scholarship Program. The Scholarship Program was established by section 751 of the Public Health Service Act, currently codified at 42 U.S.C. § 254l-254t.1 As required by statute, 42 U.S.C. § 294t (current version at 42 U.S.C. § 254l (1988 & Supp. II 1990)), on June 20, 1978, she signed a scholarship agreement with the Secretary of the Department of Health, Education and Welfare (now Department of Health and Human Services) (Secretary). She later renewed her agreement, first on March 27, 1979, and again on May 18, 1980, by executing extensions in order to obtain further scholarship awards. A representative of the Secretary countersigned all three documents. These documents set out the obligations of the scholarship recipient and the Secretary.

The relevant portions of plaintiff’s scholarship agreement read as follows:

NATIONAL HEALTH SERVICE CORPS SCHOLARSHIP PROGRAM CONTRACT

Section 751 of the Public Health Service Act (42 U.S.C. 294t) establishes .the National Health Service Corps Scholarship Program (“Scholarship Program”) and authorizes the Secretary of Health, Education, and Welfare (“Secretary”) to provide applicants selected to be participants in the Scholarship Program with scholarship awards. In return for awards, applicants must agree to perform a period of obligated service as members of the National Health Service Corps (autho[482]*482rized under Section 331 of the Public Health Service Act, 42 U.S.C. 254d) in the health manpower shortage areas designated under Section 332 of the Public Health Service Act (42 U.S.C. 254e) or in those units of the Department of Health, Education, and Welfare to which they may be assigned.

Section A — Obligations of the Secretary ... the Secretary agrees to:

1. Provide the undersigned applicant (“applicant”) with a scholarship award for the school year 1978-79 during which the applicant:

a. is enrolled ... as a full-time student in an accredited ... educational institution in ... the Commonwealth of Puerto Rico, ... and

b. is pursuing a course of study leading to a degree in medicine____

The scholarship award consists of tuition, an amount for all other reasonable educational expenses incurred by the student, and a monthly stipend for the 12-month period beginning with the first month of each school year in which the applicant is a participant in the Scholarship Program.

2. Accept the applicant into the Corps or other unit of the Department of Health, Education, and Welfare, as provided in section B(4) of the contract.

3. Defer performance of the period of obligated service for applicants who receive a degree in medicine____

Section B — Obligations of the Applicant The applicant agrees to:

1. Accept the scholarship award provided by the Secretary under section A(l) of this contract for the school year 1978-79.

4. Serve in the full-time clinical practice of his or her profession (a) as a commissioned officer in the Regular or Reserve Corps of the Public Health Service or as a civilian member of the Corps in a health manpower shortage area designated under Section 332 of the Public Health Service Act to which the applicant is assigned, ____

5. Serve one year of obligated service for each year the scholarship award is provided, or two years, whichever is greater.

Section C — Breach of Scholarship Contract

If the applicant:

3. Pails to begin or complete the period of obligated service incurred under this contract ... the United States shall be entitled to recover an amount equal to three times the scholarship funds awarded, plus interest, as determined by ... formula____

The amount the United States is entitled to recover shall be paid within one year of the date the Secretary determines that the applicant has failed to begin or complete the period of obligated service.

The first extension to plaintiffs scholarship agreement reads as follows:

Extension and Amendment of 1978-79
National Health Service Corps
Scholarship Program Contract
Consistent with Section B of the 1978-79 National Health Service Corps Scholarship Program (“Scholarship Program”) Contract entered into between the undersigned recipient (“recipient”) and the Secretary of Health, Education, and Welfare, this document extends that contract by awarding the recipient a continuation scholarship award for the 1979-80 school year____
In addition, this continuation award for the 1979-80 school year amends the recipient’s 1978-79 Scholarship Program Contract in that, in accepting this award, the recipient agrees not only to comply with the obligations imposed under the 1978-79 Scholarship Program Contract and section 751 of the Public Health Service Act (42 U.S.C. 294t), but also those obligations imposed under the regulations implementing the Scholarship Program in 42 CFR Part 62.

[483]*483The second extension to plaintiffs agreement reads similarly.

In return for the scholarship aid received 2, plaintiff agreed to provide a total of three years of service as a member of the NHSC in a designated health manpower shortage area (HMSA) or in a designated unit of HEW. See Section B(4) of the Contract. The parties’ dispute arises out of this provision of the written agreement.

Following plaintiff’s graduation from medical school in June 1981, she received a four-year deferment of her service obligation in order to undertake residential training in obstetrics and gynecology. Plaintiff completed her residency in June 1985.

In 1981, subsequent to the last extension of plaintiff’s written agreement with the NHSC but prior to the date on which she was to begin providing service, Congress amended the Public Health Service Act, by enacting Public Law 97-35.

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Related

Gates v. United States
40 Cont. Cas. Fed. 76,753 (Federal Claims, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
27 Fed. Cl. 480, 1993 U.S. Claims LEXIS 277, 1993 WL 16000, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mangual-v-united-states-uscfc-1993.