James Scott Munro, Audrey Perez, and Intrinsic Capital Corp. v. Amandip Jagpal, Harpreet Hayer, Walter Paris

CourtCourt of Appeals of Texas
DecidedJune 9, 2023
Docket05-21-00125-CV
StatusPublished

This text of James Scott Munro, Audrey Perez, and Intrinsic Capital Corp. v. Amandip Jagpal, Harpreet Hayer, Walter Paris (James Scott Munro, Audrey Perez, and Intrinsic Capital Corp. v. Amandip Jagpal, Harpreet Hayer, Walter Paris) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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James Scott Munro, Audrey Perez, and Intrinsic Capital Corp. v. Amandip Jagpal, Harpreet Hayer, Walter Paris, (Tex. Ct. App. 2023).

Opinion

Reverse and Remand and Opinion Filed June 9, 2023

In The Court of Appeals Fifth District of Texas at Dallas No. 05-21-00125-CV

JAMES SCOTT MUNRO, AUDREY PEREZ, AND INTRINSIC CAPITAL CORP., Appellants V. AMANDIP JAGPAL, HARPREET HAYER, WALTER PARIS, Appellees

On Appeal from the 471st Judicial District Court Collin County, Texas Trial Court Cause No. 471-00924-2017

MEMORANDUM OPINION Before Justices Molberg, Reichek, and Garcia Opinion by Justice Molberg Appellants James Munro, Audrey Perez, and Intrinsic Capital Corporation

appeal the trial court’s order granting appellees’ motion to dismiss based on common

law forum non conveniens. First, appellants contend the trial court erred by granting

the motion given appellees, as plaintiffs, chose the forum and then litigated through

summary judgment. Second, appellants argue the trial court erred by granting the

motion to dismiss because in doing so the court “nullif[ied] the summary judgment

rulings already in place” that had dismissed claims on the merits. Because we conclude appellees waived reliance on the doctrine of forum non conveniens, we

reverse in this memorandum opinion. See TEX. R. APP. P. 47.4.

I. Background

The underlying dispute between the parties in this cause concerns the

ownership and control of Intrinsic Capital Corporation (Intrinsic), which is a holding

company for shares of Cannabis Science, Inc. stock. Appellees Amandip Jagpal,

Harpreet Hayer, and Walter Paris claim majority ownership of Intrinsic, while

appellants James Munro and Audrey Perez claim Munro was its 100 percent

shareholder, and that no one, other than Munro, held any ownership or control of

Intrinsic. In 2017, appellant Munro attempted to sell Intrinsic’s Cannabis Science

shares with the help of consultant Issuer Solutions, and they utilized a Collin County,

Texas-based transfer agent, Securities Transfer Corporation (STC), to do so.

Appellees, claiming they were the majority owners of Intrinsic, demanded STC

cease from transferring any of the Cannabis Science shares.

On February 27, 2017, appellees Jagpal, Hayer, and Paris, and appellant

Intrinsic,1 filed an original petition in Collin County, Texas, alleging claims of fraud,

breach of contract, breach of fiduciary duty, conspiracy to defraud, conversion,

tortious interference, and aiding and abetting against Munro, Perez, Issuer Solutions,

LLC, and STC. Munro and Perez are residents of Canada, Issuer Solutions is a

1 Though Intrinsic was one of the original plaintiffs in this cause, it is before this Court as an appellant, joining Munro and Perez in challenging the trial court’s dismissal. –2– Colorado entity, and STC is a Texas corporation based in Plano. Jagpal, Hayer, and

Paris alleged they were the majority shareholders of Intrinsic. Appellant Munro,

they alleged, held Jagpal’s, Hayer’s, and Paris’s shares in Intrinsic as trustee.

Appellees alleged in their petition that Munro “schemed to take over Intrinsic

and lock out his trust beneficiaries” and appointed Perez, his wife, as director and

president of Intrinsic. Munro then caused Intrinsic to enter into an agreement with

Issuer Solutions under which the latter provided strategy, ideas, and networking

regarding business, products, and services. Intrinsic paid for this consulting with

21,400,000 shares of Cannabis Science stock. Munro delivered this stock to STC,

which was to transfer the shares to Issuer Solutions March 1, 2017. Appellees

alleged Munro and Perez then abandoned Intrinsic.

Appellees became aware of this course of events in February 2017 and

launched legal proceedings in British Columbia, where they reside. Appellees

moved to return Intrinsic to “good standing” with the Nevada Secretary of State and

to make Jagpal and Hayer its board of directors. They sought to stop the transfer of

the 21,400,000 shares of stock from STC to Issuer Solutions. Appellees alleged

Munro and Perez’s “misdeeds” are the subject of the British Columbia lawsuit,

which was pending when appellees filed their petition in Collin County. In the

Collin County suit, appellees brought claims for fraud, breach of contract, breach of

fiduciary duty, conspiracy to defraud, conversion, tortious interference, and aiding

and abetting.

–3– Appellees also filed an application for a temporary restraining order and a

request for a temporary injunction. They sought to restrain appellants from

transferring the stock at issue to Issuer Solutions and to enjoin appellants from “any

acts or representations purportedly under the authority of [Intrinsic] or Cannabis

Science.” The trial court granted a temporary restraining order on March 1, 2017.

Appellees filed a motion for expedited discovery on March 3, 2017, and the trial

court granted the motion the same day.

Appellants filed special appearances on March 8, 2017, arguing that Munro,

Perez, and Issuer Solutions were “not subject to the general or specific personal

jurisdiction of the Court[.]” Appellees responded in opposition the next day. The

trial court signed a temporary injunction against appellants on March 9, enjoining

Munro, Perez, Issuer Solutions, and STC from transferring Cannabis Science stock

from Intrinsic to Issuer Solutions, and from taking any action on behalf of Intrinsic.

Appellants filed their original answer and request for disclosure on June 29,

2018, generally denying appellees’ allegations and requesting disclosures under rule

of civil procedure 194. On June 29, 2018, the trial court entered an amended agreed

discovery control plan and scheduling order, which, among other things, required

discovery to be completed by February 11, 2019. On December 10, 2018, the parties

filed expert designations.

–4– A month later, appellants filed a motion to dissolve or modify the temporary

injunction and a motion to require appellees’ counsel to show authority for their

representation of Intrinsic. Appellees responded on January 31, 2019.

On March 11, 2019, appellants filed their second amended answer and

counterclaims. They alleged causes of action for slander of title, tortious

interference with existing contracts, tortious interference with prospective business

relations, conversion, intentional infliction of emotional distress, breach of fiduciary

duty, violation of Nevada law, and violation of Chapter 12 of the civil practice and

remedies code. They also requested declaratory relief. On April 8, 2019, appellants

filed a motion for traditional and no evidence partial summary judgment, seeking a

declaratory judgment that Munro is the sole owner of Intrinsic and for judgment

against appellees on their conversion claim on no evidence grounds.

On April 11, 2019, the trial court entered an amended agreed proposed

discovery control plan and scheduling order. A week later, appellees filed a motion

to compel against Munro and Perez, arguing appellants failed to provide responses

to appellees’ interrogatories, requests for production, and requests for admissions.

Counsel for appellees notified the trial court on May 1, 2019, that plaintiff

Paris died “on or about September 28, 2018,” and plaintiff Hayer died “on or about

April 13, 2019.” Counsel filed a motion to withdraw on May 14, 2019, which was

granted on May 30. On May 17, appellants supplemented their motion for summary

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James Scott Munro, Audrey Perez, and Intrinsic Capital Corp. v. Amandip Jagpal, Harpreet Hayer, Walter Paris, Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-scott-munro-audrey-perez-and-intrinsic-capital-corp-v-amandip-texapp-2023.