Malibu merchants’ beach ‘sandbox’ dispute heads to court

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Malibu merchants’ beach ‘sandbox’ dispute heads to court

(Bloomberg) — In Malibu, a region on the upper Pacific Ocean near Los Angeles, James Kohlberg, the son of the late KKR & Co. co-founder Jerome Kohlberg, has accused another legendary businessman of stealing sand.

He alleges in the suit that his neighbor on Broad Beach Road, Milwaukee Brewers principal owner Mark Attanasio, has been using heavy machinery to dump large scoops of debris on the public beach as part of a construction project.

“This case is about a private property owner using a public beach as his or her private sandbox and converting a public natural resource (i.e., the sand of Broad Beach) in a nuisance manner for the private use of a nearby homeowner,” Kohlberg’s lawyers wrote in a complaint filed last week in the Beverly Hills branch of Los Angeles state court.

Attanasio’s attorney, Kenneth Ehrlich, said in an emailed statement that Attanasio will “vigorously defend” his rights in this legal process. The attorney said Attanasio’s company complied with the terms of the construction project permit.

The Broad Beach dispute began when Attanasio obtained a permit to do repair work on a seawall on one of his parcels. According to the complaint, the conditions of the permit prohibited the use of heavy machinery in the tidal zone and the removal of sand from the public beach.

Kohlberg’s lawyers wrote that Attanasio’s crew used “giant excavators” to dig up sand, which disturbed local marine life and added even more sand to a beach that had “historic concerns of sand scarcity.”

Malibu, located 21 miles of beach, is a favorite destination for celebrities, technology and finance billionaires, home to the most expensive homes ever sold in California.

The number of high-powered people involved in coastal fights in California has been enormous. To the north, venture capital billionaire Vinod Khosla has waged a 15-year battle to block public access through his private property to a popular surfing spot near San Francisco. To the south, “Bond King” Bill Gross lost his bid to avoid criminal charges after annoying his Laguna Beach neighbors three years ago by playing the theme song from Gilligan’s Island on outdoor speakers.

Kohlberg claims he contacted California regulators to no avail. According to the complaint, the California Coastal Commission launched an investigation but took no action to stop the sand theft.

The lawsuit cites violations of the California Coastal Act and nuisance claims. Kohlberg is seeking a court order requiring Attanasio to replace the sand and preventing him from taking more sand, as well as a monetary fine.

Attanasio’s attorney said his limited liability company, 2XMD, the legal owner of the Broadbeach Road property, “is engaged in fully-permitted emergency repairs to protect the property from maritime forces.”

Ehrlich said in a statement that it “obtained all permits necessary for the renovations from the City of Malibu and LA County as well as thoroughly vetted all contractors and subcontractors involved in the project.” It “has complied with all of its permits 100%.”

According to property records, Kohlberg purchased his beachfront home for $14.2 million in 2021. Attanasio paid $23 million for a portion of his property in 2007 and $6.6 million for an adjacent lot in 2017.

Attanasio is the co-founder of Los Angeles-based Crescent Capital Group, an alternative asset manager that had $43 billion under management as of March 31.

Kohlberg is chairman of Kohlberg & Co., a private equity firm founded by his father, who was a pioneer of leveraged buyouts at KKR. Last month, Kohlberg pledged $30 million to fund a center to advocate for Supreme Court reform, the Washington Post reported.

The case is Los Trancos Management Services LLC v. 2XMD Partners LLC, 24SMCV03828, California Superior Court, Los Angeles County (Beverly Hills).

More stories like this are available on bloomberg.com

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“Malibu beach ‘sandbox’ dispute goes to court”

Here is the rewritten content, condensed and formatted in a single section:

Beach Battle Brewing in Malibu as Millionaire Neighbors Go Head-to-Head Over Sand

A high-stakes beachfront property dispute has erupted in Malibu, a favorite destination for celebrities and billionaires. James Kohlberg, the son of the late KKR co-founder Jerome Kohlberg, has sued his neighbor, Milwaukee Brewers principal owner Mark Attanasio, claiming that he’s been stealing sand from a public beach for a construction project on his private property.

According to Kohlberg’s lawsuit, Attanasio obtained a permit to repair his seawall, but allegedly ignored conditions that prohibited the use of heavy machinery and removing sand from the public beach. Kohlberg’s lawyers say the work has disturbed local marine life and worsened sand scarcity in the area.

Attanasio’s lawyer, Kenneth Ehrlich, disputes the claims, saying Attanasio will "vigorously defend" his rights in the legal process and that his company complied with permit requirements. Ehrlich claims Attanasio’s company, 2XMD, obtained all necessary permits from the City of Malibu and LA County, and that its contractors and subcontractors were vetted thoroughly.

The controversy is part of a long-running pattern of wealthy individuals in California engaged in contentious coastal disputes. Notably, venture capital billionaire Vinod Khosla has waged a 15-year battle to block public access to a popular surfing spot near San Francisco.

The dispute has already led to Kohlberg seeking a court order requiring Attanasio to restore the beach to its original state and preventing him from taking further sand. The case is now ongoing in Los Angeles Superior Court.