Foreign Car Center, Inc. v. Essex Process Service, Inc.

Foreign Car Center, Inc. (Foreign Car), a corporation engaged in the selling, leasing and repairing of motor vehicles, was in difficult financial circumstances in the early 1990’s. Its president and treasurer, Stefano Picciotto (Picciotto), was sick due to toxic fumes from a neighboring factory and could only work a few hours at a time. His wife, Judith Picciotto (Judith), the sole stockholder of Foreign Car, testified that both were “very ill” and “were trying to run [Foreign Car] on a bit of a string.”

A creditor of Foreign Car, Warren Five Cents Savings Bank (bank), recovered a judgment…