Estate of Falkenborg CA2/5

CourtCalifornia Court of Appeal
DecidedOctober 25, 2022
DocketB305925
StatusUnpublished

This text of Estate of Falkenborg CA2/5 (Estate of Falkenborg CA2/5) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of Falkenborg CA2/5, (Cal. Ct. App. 2022).

Opinion

Filed 10/25/22 Estate of Falkenborg CA2/5 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION FIVE

ESTATE OF MARIE FALKENBORG, Deceased B305925

LYNN FALKENBORG (Los Angeles County WINTERROWD, Executor, Super. Ct. No. 17STPB08636) Plaintiff and Appellant,

v.

DONALD DALE FALKENBORG,

Defendant and Respondent.

APPEAL from a judgment of the Superior Court of Los Angeles County, Deborah L. Christian, Judge. Reversed and remanded with directions. Shaw Koepke & Satter and Jens B. Koepke for Plaintiff and Appellant. Snow Law Corp. and Stephen L. Snow for Defendant and Respondent. Lynn Falkenborg Winterrowd (Lynn), the executor of her mother’s will, petitioned to recover litigation costs that the estate incurred when defending against her brother Donald Falkenborg’s (Donald’s) objections to her appointment, first as special administrator of the estate and then as executor of the estate. In that same petition, Lynn also sought to recover compensatory and punitive damages for the estate from Donald for malicious prosecution of the objection to her appointment as executor. The probate court granted judgment on the pleadings for Donald. We are asked to decide whether Lynn had standing to petition for recovery of costs (even though letters testamentary had not issued when the petition was filed) and whether she alleged facts sufficient to assert a claim for malicious prosecution.

I. BACKGROUND In 1992, Lynn and Donald’s parents, Marie (Marie) and Donald (Donald, Sr.) Falkenborg, created a family trust and named themselves trustees; Lynn was named as a successor trustee.1 The most significant asset in the trust was Marie and Donald, Sr.’s interest in a business they began and built, Borg Equipment & Supply, Inc. Under the terms of the trust, Marie and Donald, Sr.’s children would receive equal shares of the trust estate following their parents’ deaths. Donald, Sr. died in 2004 and Marie died in 2017. Prior to Donald, Sr.’s death, Marie executed a pour-over will which left all her property to the trust. In her will, Marie named Lynn as “first

1 Lynn was named as co-successor trustee with her brother William, who died in 2016. The trust did not name Donald as a successor trustee or as an alternate successor trustee.

2 alternative Executor” in the event Donald, Sr. predeceased her.2 The will contains a “no contest” provision that provides anyone who, either “directly or indirectly,” contests the probate of the will would receive one dollar rather than his or her otherwise bequeathed share or interest in her estate. Marie also appointed Lynn as her health care agent with durable power of attorney for health care decisions.

A. Donald’s Objections to Lynn’s Appointment as Special Administrator and Executor Following Marie’s death, Lynn petitioned for probate of her mother’s will and, at the same time, sought via ex parte application an expedited hearing to obtain temporary letters of special administration with general powers to defend the estate from claims brought by the wife of one of Lynn and Donald’s deceased brothers who maintained she was entitled to a controlling interest in the family business.3 Lynn’s petition for probate did not advance any reasons for why she should be appointed executor beyond the designation in Marie’s will. Although Donald consented to Lynn’s appointment as a special administrator with limited authority to represent the estate against the claims of their former sister-in-law, he objected to Lynn’s request to be granted general powers over the estate.

2 In the event Lynn predeceased Marie, the will named Lynn’s brother William as a “second alternative Executor.” The will did not name Donald as a third alternative executor. 3 Several months after her appointment as executor became effective, Lynn settled the dispute with her former sister-in-law for $465,000.

3 In Donald’s view, there were no exigent circumstances requiring the issuance of general powers at an early stage of the probate proceedings. In addition, on information and belief, Donald alleged that prior to their mother Marie’s death, and while she was suffering from dementia, Lynn had engaged in various forms of “substantial misconduct” and may have exercised undue influence over Marie.4 Donald requested Lynn’s authority as special administrator be “strictly limited” to defending the claims brought by their former sister-in-law. Lynn responded to Donald’s objections. She argued her power as special administrator should not be limited to defending against the claims of her former sister-in-law; rather, she should be granted the authority to commence, maintain, or defend against any lawsuit or other legal proceeding. The probate court granted Lynn’s ex parte application for an expedited hearing on her petition to be named special administrator. At the hearing, the court implicitly overruled Donald’s objections by appointing Lynn as the estate’s temporary special administrator with “full authority” under the Independent

4 Among other things, Donald alleged Lynn manipulated Marie into naming Lynn president of the family business, attempted to manipulate Marie into giving Lynn valuable assets belonging to the family business, tried to manipulate the testamentary distribution of Marie’s assets, and used Marie’s money to pay some of Lynn’s personal expenses. Donald also alleged Lynn’s “deep hostility” toward him and the estate’s other beneficiaries would prevent the proper administration of the estate.

4 Administration of Estates Act (Prob. Code,5 § 10400 et seq.) to both commence and defend actions for the benefit of the estate, including but not limited to the claims brought by the former sister-in-law. The court, however, did “not grant any authority to marshal assets without further Court approval.” Lynn’s tenure as special administrator was set to expire on March 19, 2018. In addition to contesting the scope of Lynn’s appointment as special administrator of the estate, Donald also opposed—at least initially—Lynn’s petition for probate requesting the court appoint her executor of the estate. Among other things, Donald argued Lynn exercised undue influence over their mother and succeeded in getting Marie to amend the revocable portion of the family trust so as to give all of the assets in that portion to Lynn.6 Donald maintained Lynn “aggressively” prevented him from learning about her financial dealings with Marie and alleged, once more, Lynn possessed a “deep hostility” toward him and the other beneficiaries. In addition, Donald averred Lynn “may have physically abused” Marie and, through neglect, may have contributed to Marie’s death. Donald advised the probate court he intended to file a competing petition (though he never ultimately did) that would request the court appoint him or a neutral third party to administer the estate. In response, Lynn served Donald with written discovery requests seeking the factual basis for his objection to her

5 Undesignated statutory references that follow are to the Probate Code. 6 Donald conceded Lynn’s alleged misconduct with regard to the family trust, which purportedly occurred in 2016, did “not affect the validity of [Marie’s] will (which was executed in 2002).”

5 appointment as executor. Donald objected to the discovery requests, asserted various privileges, and refused to provide any documents or identify any facts supporting his objections to her appointment. Lynn then moved to compel further responses.

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