In Malibu, the higher crust Pacific Ocean enclave close to Los Angeles, James Kohlberg, son of the late KKR & Co. co-founder Jerome Kohlberg, has accused one other enterprise titan of stealing sand.
He’s alleging in a lawsuit {that a} neighbor on Broad Seaside Highway, Milwaukee Brewers principal proprietor Mark Attanasio, is utilizing heavy equipment to assist himself to massive scoops of the general public seaside as a part of a development undertaking.
“This case is a few non-public property proprietor utilizing a public seaside as their very own private sandbox and the disturbing conversion of a public pure useful resource (i.e., sand from Broad Seaside) for a close-by house owner’s private, non-public use,” attorneys for Kohlberg wrote within the criticism filed final week within the Beverly Hills department of Los Angeles state courtroom.
Attanasio will “aggressively defend” his rights on this authorized course of, his legal professional, Kenneth Ehrlich, stated in an emailed assertion. Attanasio’s firm has complied with necessities in a development undertaking allow, the lawyer stated.
The Broad Seaside spat began after Attanasio obtained a allow to do restore work on the seawall at considered one of his parcels. Circumstances within the allow barred using heavy equipment within the tidal zone and elimination of sand from the general public seaside, in line with the criticism.
Attanasio’s crew used “huge excavators” to dredge up the sand, disturbing native marine life and draining a seaside with “historic considerations of sand depletion” of much more sand, Kohlberg’s attorneys wrote.
Costly Properties
Malibu, a 21-mile stretch of beachfront, is a getaway for celebrities, tech, and finance billionaires with the most costly properties ever offered in California.
California has had its share of high-powered folks concerned in coastal quarrels. To the north, enterprise capital billionaire Vinod Khosla has waged a 15-year battle to dam public entry via his non-public property to a well-liked browsing spot close to San Francisco. To the south, “Bond King” Invoice Gross three years in the past misplaced his bid to fend off legal fees after he tormented his Laguna Seaside neighbors by blasting the Gilligan’s Island theme music on out of doors audio system.
Kohlberg claims he contacted California regulators to no avail. The California Coastal Fee launched an investigation however hasn’t taken motion to cease the sand-stealing, in line with the criticism.
California Coastal Act
The lawsuit cites violations of the California Coastal Act and nuisance claims. Kohlberg is in search of a courtroom order requiring Attanasio to interchange the sand and stopping him from taking extra of it, in addition to financial fines.
The lawyer for Attanasio stated his restricted legal responsibility firm, 2XMD, the authorized proprietor of the Broad Seaside Highway property, “is within the midst of a fully-permitted emergency restore of the property to guard it from ocean forces.”
“It has secured all permits essential for the repairs from the Metropolis of Malibu and LA County in addition to completely vetted all contractors and sub-contractors concerned within the undertaking,” Ehrlich stated in his assertion. “It has acted in 100% compliance with all of its permits.”
Kohlberg purchased his beachfront residence in 2021 for $14.2 million, in line with property data. Attanasio paid $23 million in 2007 for one a part of his property and $6.6 million for an adjoining lot in 2017.
Attanasio is co-founder of Los Angeles-based Crescent Capital Group, another asset supervisor with $43 billion underneath administration as of March 31.
Kohlberg is chairman of Kohlberg & Co., a personal fairness agency based by his father, who was a pioneer of leveraged buyouts at KKR. Final month, Kohlberg pledged $30 million to finance a middle to advocate for reform of the Supreme Court docket, the Washington Publish reported.
The case is Los Trancos Administration Providers LLC v. 2XMD Companions LLC, 24SMCV03828, California Superior Court docket, Los Angeles County (Beverly Hills).