What happens if she reports as ordered, but also pursues her lawsuit?
Great question. It all comes down to what she says - outside of her legal filings - and how she says it. If she keeps her head down, her mouth shut and shows up for duty, then my guess is she won't face any disciplinary actions. Of course, it all comes down to her command and how patient or tolerant they are.
They could just get rid of her. I'm not exactly sure how the Army does it. But, it's probably an administrative review board. Remember, officers serve at the "pleasure of the President". But, I would be wildly surprised if that would happen - at least initially. I'm SURE it will happen eventually.
There's some dispute that this Captain is under a service obligation because of prior scholarship monies paid on either her graduate or post-graduate education. If she is obligated, I VERY much doubt she'll be dismissed right away. I would think that the Army would get their pound of flesh.
If they would move to dismiss, it would be an understatement to say it would have PROFOUND impact or good discipline and moral, for a whole variety of reasons.