Estate of Bodmann (Krouse v. Holden-Bodmann)

Cite as A164552
Filed November 21, 2025
First District, Div. Four

By Kimberly Duggan
Duggan Law PC
KDuggan@dugganlawpc.com

Headnote: Executors – Mismanagement as a Basis for Disqualification

Summary: Mismanagement under Probate Code sections 8402(a)(3) and 8502(a) includes pre-appointment conduct that badly, improperly, or unskillfully handles an estate asset and may result in denial of appointment of a named executor.

This dispute involved “Bodmann Insurance,” a small, relationship-based insurance agency operated for nearly 30 years by decedent Dan Bodmann and his widow, Heather. Dan’s holographic will named all seven of his biological children and stepchildren as executors and directed daughter Andrea to maintain the business. After Dan’s death, Andrea relied on her stepbrother Tom Krouse to assist with the transition. Conflict quickly escalated when Tom demanded immediate access to business files held by Heather, confronted Heather aggressively, and issued peremptory directions on how Heather must communicate and participate in the business. Cooperation broke down, and the business declined.

After an 11-day bench trial, the probate court found that Tom’s “unwarranted aggressive, disrespectful treatment” of Heather disrupted operations and undermined the client relationships central to the business. Even though Tom lacked formal authority, he held himself out as “chief operating officer” and attempted to control the enterprise. The court concluded this conduct constituted mismanagement of an estate asset and disqualified him from serving as executor.

The appellate court affirmed, emphasizing that mismanagement does not require fraud or intentional misconduct and may include pre-appointment behavior affecting estate assets; and that conduct that would justify removal if the individual were appointed supports disqualification, and that sections 8402(a)(3) and 8502(a) authorize denial of appointment where the nominee’s prior actions demonstrate grounds for removal.