The lawsuit centers on a disagreement over the interpretation of a Release and Waiver Agreement between the two parties. The agreement governed the rights to collateral maintained at an industrial premises leased by a third party, Formlogic Corporation.
The dispute began after Formlogic defaulted on its lease in late 2024 and vacated the property. Buncher, the landlord, asserted ownership rights to the equipment left behind and demanded that HSBC Ventures remove it within a reasonable time.
HSBC Ventures sold the collateral in February 2025 and retained the $340,000 in proceeds. Buncher alleged that HSBC Ventures failed to provide adequate notice for removal, abandoned its rights under the agreement, and subsequently sold the property without consent.
In its motion to dismiss, HSBC Ventures argued that Formlogic had not yet vacated the premises when Buncher issued its initial notice, and that HSBC Ventures had complied with the contract terms by removing the equipment before the deadline.
Judge Nora Barry Fischer rejected these arguments, noting that HSBC Ventures relied heavily on its own version of the facts and documents outside the pleadings. The court held that it must accept Buncher’s factual allegations as true at this stage of the litigation.
The judge held that the contract language regarding what constitutes a "reasonable time" for removal was facially ambiguous. Because determining reasonableness is typically a question of fact for a jury, the court ruled that Buncher had sufficiently pled its breach of contract claim.
The denial extends to Buncher’s additional claims for conversion, fraud, trespass to chattel, and unjust enrichment. The court concluded that because the breach of contract claim survives, these related claims also withstand dismissal.
HSBC Ventures must now file an answer to the complaint by May 8, 2026.