United States of America v. John M. Kistler, Jr.; Blue Mountain Ministry, Inc.; Michael J. Garvey; and Kristi L. Kwiatkowski

District Court, M.D. Pennsylvania·Decided July 24, 2026·No. 3:25-cv-00773·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA UNITED STATES OF AMERICA, ; No. 3:25cv773 Plaintiff : (Judge Munley)

JOHN M. KISTLER, JR.; BLUE MOUNTAIN MINISTRY, INC.; — : MICHAEL J. GARVEY; and KRISTIL. : KWIATKOWSKI, : Defendants MEMORANDUM ORDER Before the court are Defendant John Kistler’s motions to dismiss, motion to show cause, and motion to quash. (Docs. 7, 20, 30, 36, 39, 47, 58). Also pending are the government's two motions to dismiss Kistler’s counterclaims and its motion for default judgment against Defendants Kristi L. Kwiatkowski, Michael Garvey, and Blue Mountain Ministry, Inc. a/k/a Blue Mountain Ministry, LLC (“Ministry”). (Docs. 10, 35, 54). By way of brief background, the government commenced this action pursuant to 26 U.S.C. §§ 6321 and 6322 seeking to foreclose federal tax liens and a judgment lien against four parcels of real property located at 65 and 69

Tompkins Street, Pittston, Pennsylvania 18640 (hereinafter “Pittston Property’).

(Doc. 27, Am. Compl. J] 28-34). According to the amended complaint, the Secretary of the Treasury assessed federal income tax liabilities against Kistler

| for tax years 2008 through 2012. (Id. | 13). In 2021, the government brought a separate action against Kistler to reduce those assessments to judgment. (Id. ] 14). | The government alleges that the Ministry is Kistler's alter ego. (Id. {| 28). In support of these allegations, the government asserts that Kistler used his personal funds, including part of his father’s inheritance, to purchase the real

property at issue in this case. (Id. 17). Additionally, Kistler titled the real

property in the name of the Ministry. (Id.) Kistler allegedly uses the Ministry's bank accounts to pay for his personal living expenses. (Id. {[ 21). Defendant Kwiatkowski, Kistler's daughter, allegedly serves as the Financial Secretary of the Ministry while Defendant Garvey allegedly serves as

the Trustee of “Guardians” for the Ministry. (Id. 7] 6, 7). Accordingly, the government contends that both Kwiatkowski and Garvey may claim an interest in tie Pittston Property. (Id.) The government successfully served Kwiatkowski on May 14, 2025. (Doc. 14-1, at 2). As for Kistler, he waived any objections to the service of process

because he filed a motion to dismiss for lack of subject matter jurisdiction and venue without challenging service. (Id. at 2, see Docs. 6, 7). As to the Ministry and Garvey, they have made it difficult for the government to serve them. (Doc. 14-1, at 2).

1. Kistler’s counterclaims

Kistler filed multiple counterclaims in response to the government's

complaint. They are meritless. Counterclaim for alleged defamation and harassment — In some of his

counterclaims, Kistler seeks $10 million in damages for alleged defamation and harassment. (Docs. 5, 8). Although the counterclaim is not a model of clarity, Kistler appears to allege that the government has defamed his character and harassed him for 25 years, resulting in lost income and damage to his credit. (Doc. 5 at 1; Doc. 8 at 1). The government argues that Kistler’s counterclaim sounds in tort and is therefore governed by the Federal Torts Claims Act ("FTCA"). According to the

government, the counterclaim is barred by the doctrine of sovereign immunity. : (Doc. 10-1, Gov. Br. in Supp at 2). The court agrees. It is axiomatic that “the United States, as sovereign, is immune from suit” unless it has consented to be sued. United States v. Sherwood, 312 U.S. 584,

586 (1941). “Without a waiver of sovereign immunity, a court is without subject

matter jurisdiction over claims against federal agencies or officials in their official capacities.” Treasurer of New Jersey v. U.S. Dep't of Treasury, 684 F.3d 382,

395 (3d Cir. 2012). Such waivers cannot be implied but must be unequivocally

expressed. United States v. Mitchell, 445 U.S. 535, 538 (1980): United States v. Nordic Vill., Inc., 503 U.S. 30, 31-33 (1992). Although the FTCA waives sovereign immunity for certain tort claims,

Congress expressly excluded others from that waiver. Brumfield v. Sanders, 232

376, 382 (3d Cir. 2000). Relevant here, “[c]laims ‘arising out of ... libel, slander, misrepresentation [or] deceit’ are excepted from the United States's

general waiver of sovereign immunity.” Id. (quoting 28 U.S.C. § 2680(h)). Accordingly, “defamation suits against the United States are prohibited.” Id. Based on the foregoing, Kistler’s claim for defamation is barred as a matter

of law. To the extent Kistler also asserts a claim for harassment or any other tort

arising from the government's assessment or collection of federal taxes, those claims fare no better. The FTCA expressly bars any “claim arising in respect of the assessment or collection of any tax.” Lichtman v. United States, 316 F. App'x 116, 120 (3d Cir. 2008) (quoting 28 U.S.C. § 2680(c)); see Kennedy v. Comm'r, : Dep't of Treasury Internal Revenue Serv., 790 F. App'x 447, 449 (3d Cir. 2019) (‘[Plaintiff's] claim for damages for intentional infliction of emotional distress and

loss of reputation is related to the collection of his 2007 federal income tax

liability .. . and thus his alleged injury falls within the tax exception to the

FTCA.”). Section 2680(c) “specifically applies to all tax-related claims.”

|

Lichtman, 316 F. App'x at 120 (quoting Interfirst Bank Dallas, N.A. v. United States, 769 F.2d 299, 307 (5th Cir. 1985)). Here, Kistler’s allegations arise directly from the government's efforts to

assess and collect his federal tax liabilities. As such, they fall within the FTCA’s tax-collection exception and are barred by sovereign immunity. Moreover, Kistler identifies no statutory provision waiving the United States’ sovereign immunity. That omission is independently fatal. See Clinton Cnty. commis v. U.S. E.P.A., 116 F.3d 1018, 1021 (3d Cir. 1997) (“when the plaintiff seeks to sue the United States or an instrumentality thereof, he may not rely on tne general federal question jurisdiction of 28 U.S.C. § 1331, but must identify a specific statutory provision that waives the government's sovereign immunity from suit.”)). Thus, Kistler’s counterclaim for defamation and harassment will be 7 dismissed.

Counterclaims for Other Damages — Kistler also filed what appears to be counterclaim seeking $1 million in “Tort damages” for laches from the Secretary of Treasury, an Internal Revenue Service (“IRS”) employee, Acting Commissioner of the IRS, and the Honorable Robert D. Mariani. (Doc. 21 at ECF p.8; Doc. 22 at ECF p. 20-21; Doc. 29 at ECF pp. 2-3).

Whatever the precise nature of Kistler’s counterclaims, they fail as a matter

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United States of America v. John M. Kistler, Jr.; Blue Mountain Ministry, Inc.; Michael J. Garvey; and Kristi L. Kwiatkowski, (M.D. Pa. 2026).

United States of America v. John M. Kistler, Jr.; Blue Mountain Ministry, Inc.; Michael J. Garvey; and Kristi L. Kwiatkowski (United States of America v. John M. Kistler, Jr.; Blue Mountain Ministry, Inc.; Michael J. Garvey; and Kristi L. Kwiatkowski) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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