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California Sues Billionaire Khosla in Latest Beach Fight

Vinod Khosla’s lawyer decries ‘communist’ tactics.

California Sues Billionaire Khosla in Latest Beach Fight
Vinod Khosla, founder and managing partner of Khosla Ventures, speaks at the ECO:nomics Creating Environmental Capital conference in Santa Barbara, California, U.S. (Photographer: Jonathan Alcorn/Bloomberg)

(Bloomberg) -- California upped the ante in venture capitalist Vinod Khosla’s long-running fight over his coastal property near San Francisco, suing the billionaire to maintain public access to a Pacific Ocean beach.

Until now, non-profit organizations have fought to maintain access to Martins Beach, a crescent-shaped cove an hour south of San Francisco. On Monday, California officials stepped into the fight for the first time by suing Khosla in state court.

The lawsuit drew a pointed response from a lawyer for Khosla who has said little publicly while litigating aggressively over the years.

“Since the property was purchased by our client, the state, and small activist groups, have endeavored to seize our client’s private property without compensation,” attorney Dori Yob Kilmer said in an email. “While such tactics are commonplace in communist systems, they have never been tolerated in the American system where the U.S. Constitution precludes the government from simply taking private property and giving it to the public.”

The beach had been open to the public for decades before Khosla bought the 89-acre property in 2008 for $32.5 million and shut off the lone road leading there. A state judge had ordered his holding companies to restore that access. While the road has often been opened, California officials said access hasn’t been consistent.


Khosla previously appealed to the U.S. Supreme Court, which refused to review a lower-court ruling requiring him to allow beach goers access to the coast on a road that cuts through his property.

The California Coastal Commission had closely tracked the lawsuits filed by the Surfrider Foundation. The agency said in a statement that it has spent several years collecting data, including surveys, about public use of Martins Beach. In Monday’s complaint, the commission is asking for a judge to review new evidence to conclude the public “has acquired access rights” to the land based on historical use and California law.

The case is California State Lands Commission v. Martins Beach 1, California Superior Court, County of San Mateo (Redwood City).

To contact the reporter on this story: Joel Rosenblatt in San Francisco at jrosenblatt@bloomberg.net

To contact the editors responsible for this story: David Glovin at dglovin@bloomberg.net, Peter Blumberg, Joe Schneider

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