KKR co-founder’s son sues Milwaukee Brewers owner for allegedly stealing sand
In Malibu, a remote stretch of land on the Pacific Ocean near Los Angeles, James Kohlberg, son of the late KKR & Co., Jerome Kohlberg, accused another business tycoon of stealing sand.
In the lawsuit, he alleges that a neighbor on Broad Beach Road, Milwaukee Brewers principal owner Mark Attanasio, is using heavy machinery to shovel large sections of sand from the public beach as part of a construction project.
“This case involves a private property owner using a public beach as their personal sandbank and the disturbing conversion of a public natural resource (i.e., sand from Broad Beach) for the private, personal use of a nearby homeowner,” Kohlberg’s attorneys wrote in the complaint filed last week in the Beverly Hills branch of Los Angeles state court.
Attanasio will “vigorously defend” his rights in this legal process, his attorney Kenneth Ehrlich said in an emailed statement. Attanasio’s company has complied with the requirements of the project’s construction permit, the attorney said.
The Broad Beach dispute began after Attanasio obtained a permit to repair a breakwater on one of his lots. According to the complaint, the permit’s conditions prohibit the use of heavy machinery in tidal zones and the removal of sand from public beaches.
Kohlberg’s attorney wrote that Attanasio’s team used “giant excavators” to dredge sand, disturbing local marine life and depleting the beach with “historical concerns about sand depletion” and causing even more sand to flow.
Expensive houses
Malibu, a 21-mile stretch of beach, is home to celebrities, tech and finance billionaires and some of the most expensive homes ever sold in California.
California has seen some high-powered people get involved in coastal brawls. Up north, billionaire venture capitalist Vinod Khosla has launched a 15 years war to block public access through his private property to a popular surfing spot near San Francisco. To the south, “Bond King” Bill Gross three years ago lost his bid to fight criminal charges after he tormented his Laguna Beach neighbors by exploding Gilligan’s Island Theme song on outdoor speakers.
Kohlberg said he has contacted California regulators to no avail. The California Coastal Commission has opened an investigation but has yet to take action to stop the sand theft, according to the complaint.
California Coastal Act
The lawsuit alleges violations of the California Coastal Act and nuisance claims. Kohlberg is seeking a court order requiring Attanasio to replace the sand and prevent him from taking any more, as well as fines.
Attanasio’s attorney said his limited liability company, 2XMD, the legal owner of the Broad Beach Road property, is “in the process of making fully licensed emergency repairs to the property to protect it from the effects of the ocean.”
“The company secured all necessary permits for the repairs from the City of Malibu and LA County and thoroughly vetted all contractors and subcontractors involved in the project,” Ehrlich said in his statement. “The company acted in 100% compliance with all of its permits.”
Kohlberg bought his beach house in 2021 for $14.2 million, according to property records. Attanasio paid $23 million in 2007 for a share his property and $6.6 million for one adjacent lot in 2017.
Attanasio is co-founder of Los Angeles-based Crescent Capital Group, an alternative asset manager with $43 billion under management as of March 31.
Kohlberg is chairman of Kohlberg & Co., a private equity firm founded by his father that pioneered leveraged buyouts at KKR. Last month, Kohlberg pledged $30 million to fund a center 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).
