United States v. Malcolm P. Gardner and Herbert L. Stern, Jr.

PHILLIPS, Chief Judge.

The sole issue on this appeal is whether the United States, on the facts here presented, is barred from suing on its debt priority under 31 U.S.C. §§ 191 and 192 1 and by the statute of limitations set forth in 28 U.S.C. § 2415. 2 The District Court determined, inter alia, that the right of action accrued on the date of the company’s default, and that the Government’s suit is barred by the statute. We reverse and remand.

In 1966, Drillmation, Inc. (the Company) entered into two contracts with the Department of the Army for carbine bolts and flash suppressors. The Company…