United States v. Bernard v. Baus

BOWNES, Circuit Judge.

The appellants in this action are guarantors of a loan from the Economic Development Administration (EDA), an agency of the United States Government, to National Medical Products Corporation (NMP), a now-defunct manufacturer of medical supplies in Puerto Rico. When NMP defaulted on the loan, the government filed suit in United States District Court in Puerto Rico to collect on the guaranties. The case was eventually settled and judgment entered against the guarantors in accordance with a stipulation of settlement. Seven years later, the government, for the first time,…