Lennon Et Al V. Reality Kats, LLC Et Al

Parties Involved

  • Plaintiff(s):David P. Lennon | Novato Development, LLC | Mirsyl, Inc.
  • Counsel for Plaintiff: David P. Lennon | Brian Charles Pedersen | Richard Steven Busch | Daniel B. Asimow | Seth Davis Mumy | David B. Tillotson
  • Experts for Plaintiff(s):  Jeffrey S. Rothbart


  • Defendant(s):Realty Kats, LLC | Dennis Simpson | Qili Ye Simpson
  • Counsel for Defendants: Daniel Rapaport| Thiele Robin Dunaway | Tyler Jay King | David Terrell Chapman |
  • Experts for Defendant(s): Anthony E Reading

Verdict Information

  • Verdict Date: May 20, 2024
  • Total damages awarded to Plaintiff(s): $22,724,078
    • Economic damages to David Lennon: $234,845
    • Non-economic damages to David Lennon: $5,000,000
    • Lost earnings to David Lennon: $3,480,799
    • Lost Profits to Mirsyl, Inc. and Novato Development: $2,008,434
    • Punitive Damages: $12,000,000

About the Case


In 2016, defendants Reality Kats, LLC, its manager Dennis Simpson, and Simpson’s wife Qili Ye Simpson, allegedly commenced a scheme involving multiple baseless legal proceedings across several jurisdictions against plaintiffs David P. Lennon, Mirsyl, Inc., and Novato Development, LLC. Over approximately nine months, the defendants initiated five different proceedings against Lennon in four different forums across Oregon, California, and federal court.

Many of these proceedings revolved around the same core set of factual allegations. These included claims regarding the terms of a 50-year promissory note Lennon and his wife executed in 2011. This note was for the purchase of their family home in Oregon from Reality Kats. The defendants filed an action in Oregon state court seeking reformation of this note. They based this on an alleged oral promise that they would pay it off within 10 years, despite the clear written terms.

In California state court, later removed to federal court, the defendants filed a complaint against Lennon, his company Mirsyl, and Mirsyl’s subsidiary Novato Development. This action asserted claims like fraud, legal malpractice, and breach of fiduciary duty relating to Mirsyl’s 2015 purchase of Novato Development’s membership interest from Reality Kats and others. In this case, the defendants also improperly filed a lis pendens, clouding the title on all of Novato Development’s real property holdings.

The defendants took other litigious actions as well. For instance, Simpson filed a third-party complaint for indemnity against Lennon. This was in an FTC enforcement action in Oregon related to his former business dealings. The plaintiffs alleged the defendants made intentional misrepresentations throughout. They falsely claimed they intended to consolidate the dismissed California case. This was with a nonexistent Oregon case when seeking voluntary dismissal without prejudice.


Through their scheme of vexatious, bad faith litigation across multiple jurisdictions, the plaintiffs asserted the defendants’ true purpose was to cause them financial hardship and force defaults on the promissory notes Lennon and Mirsyl owed to Reality Kats. This would allow Reality Kats to regain possession of valuable real estate properties like Lennon’s home and Novato Development’s holdings without pursuing judgments on the notes.

By improperly clouding Novato Development’s title through the lis pendens filing, the defendants allegedly prevented Mirsyl and Novato Development from developing, obtaining financing for, or selling any of the company’s remaining real property assets in Novato, California. This deprived the plaintiffs of income streams needed to service the debt obligations to Reality Kats.

As a result of defending against the defendants’ numerous allegedly meritless legal proceedings in different states, the plaintiffs claimed they expended significant money on attorneys’ fees and litigation costs. They asserted the defendants’ vexatious litigation campaign, motivated by oppression, fraud, and malice, caused substantial harm to their business interests and reputations.


The complaint brought claims including malicious prosecution, abuse of process, slander of title, and civil conspiracy. It sought monetary relief, including special damages like attorneys’ fees, damages for reputational harm, as well as punitive damages aimed at punishing and deterring the defendants’ alleged intentional misconduct.

Jury Verdict

The jury found that the defendants’ conduct constituted wrongful use of civil proceedings, abuse of process, and/or slander of title, which harmed the plaintiffs. For plaintiff David Lennon, the jury awarded $234,845 for past and future medical expenses. They awarded $3,480,799 for lost earnings. Additionally, they awarded $5,000,000 for pain, suffering, and emotional distress.

For plaintiffs Mirsyl, Inc. and Novato Development, the jury awarded $2,008,434 for lost profits.

Additionally, the jury awarded punitive damages against the defendants. The jury ordered Reality Kats, LLC to pay $4,000,000 in punitive damages. They ordered Dennis Simpson to pay $4,000,000 in punitive damages. And they ordered Qili Ye Simpson to pay $4,000,000 in punitive damages.

 Court Documents:

Available upon Request