In the upscale Malibu neighborhood in Pacific Ocean enclave near Los Angeles, a legal battle is brewing between two prominent business figures over an unusual accusation – sand theft. James Kohlberg, the son of the late co-founder of KKR & Co., Jerome Kohlberg, has filed a lawsuit against Mark Attanasio, the principal owner of the Milwaukee Brewers baseball team, alleging that Attanasio has been unlawfully taking sand from the public beach for his personal construction project.
The lawsuit, filed in the Beverly Hills branch of Los Angeles state court, claims that Attanasio, who resides on Broad Beach Road, has been using heavy machinery to scoop up large quantities of sand from the beach without permission. Kohlberg’s lawyers argue that Attanasio’s actions amount to the illegal conversion of a public natural resource for personal gain.
Attanasio, through his attorney Kenneth Ehrlich, has stated that he will vigorously defend his rights in the legal process. Ehrlich maintains that Attanasio’s company has adhered to all requirements outlined in the construction project permit obtained for the work being done on the seawall at one of Attanasio’s properties on Broad Beach Road.
The dispute escalated after Kohlberg raised concerns about the use of heavy machinery in the tidal zone and the removal of sand from the public beach, which were allegedly prohibited under the conditions of the permit granted to Attanasio. Kohlberg’s legal team contends that Attanasio’s crew used large excavators to dredge up sand, disturbing local marine life and exacerbating concerns of sand depletion on the beach.
Malibu, known for its exclusive beachfront properties and celebrity residents, has long been a sought-after destination for the wealthy elite. The area boasts some of the most expensive homes ever sold in California, attracting celebrities, tech moguls, and finance billionaires.
The legal battle between Kohlberg and Attanasio is not the first instance of high-profile coastal disputes in California. Venture capital billionaire Vinod Khosla has been embroiled in a lengthy legal battle to block public access through his private property to a popular surfing spot near San Francisco. Similarly, “Bond King” Bill Gross faced legal challenges after disturbing his Laguna Beach neighbors by playing loud music on outdoor speakers.
Despite Kohlberg’s efforts to address the sand theft with California regulators, the California Coastal Commission has yet to take action to stop Attanasio’s alleged activities. The lawsuit filed by Kohlberg cites violations of the California Coastal Act and nuisance claims, seeking a court order to compel Attanasio to replace the sand and refrain from further removal, as well as monetary fines.
Attanasio’s attorney maintains that his client’s company, 2XMD, is conducting permitted emergency repairs on the property to protect it from ocean forces. Ehrlich asserts that all necessary permits for the repairs have been obtained from the City of Malibu and LA County, and that the company has complied with all regulations.
Kohlberg, who purchased his beachfront home for $14.2 million in 2021, is the chairman of Kohlberg & Co., a private equity firm founded by his father. Attanasio, on the other hand, paid $23 million for one part of his property in 2007 and $6.6 million for an adjacent lot in 2017. He is the co-founder of Crescent Capital Group, an alternative asset manager with billions of dollars under management.
The legal dispute between Kohlberg and Attanasio underscores the complex intricacies of property rights and environmental concerns in affluent coastal communities like Malibu. As the case unfolds in court, the outcome will likely have implications for how public resources are managed and protected in the face of private development.
Legal Battle Over Sand Theft
The lawsuit filed by James Kohlberg against Mark Attanasio highlights the contentious issue of sand theft in the exclusive enclave of Malibu. Kohlberg has accused Attanasio of unlawfully taking sand from the public beach for his personal construction project, leading to a legal battle between the two prominent figures.
Environmental and Regulatory Concerns
The allegations of sand theft raise environmental and regulatory concerns about the use of public resources for private gain. Kohlberg’s lawyers argue that Attanasio’s actions not only violate the California Coastal Act but also pose a threat to the local marine ecosystem and exacerbate concerns of sand depletion on the beach.
Implications for Property Rights
The legal dispute between Kohlberg and Attanasio underscores the complex interplay between property rights and environmental conservation in affluent coastal communities. As the case unfolds in court, it will be closely watched for its potential impact on how public resources are managed and protected in the face of private development.
