Lawsuit claims Malibu Dream Resort violates zoning laws

For four years, The Malibu Dream Resort has hosted elegant weddings and corporate parties; however, lawyers for Los Angeles County assert that the resort  has operated illegally and has created a nuisance in a bucolic area of the Santa Monica Mountains near Point Mugu State Park.

In a suit filed earlier this month in Los Angeles Superior Court, the Office of the County Counsel filed suit against LLCs owning The Malibu Dream Resort, headquartered at 10502 Yellow Hill Road in unincorporated county land in the Malibu area. County lawyers allege that the 10,000-square-foot mansion on the resort and other structures were zoned specifically for residential use, according to Title 22 of the County Code, Planning and Zoning. 

The suit also alleges that breaking the county code also violates the state’s Unfair Competition Law. County lawyers demand $2,500 for each day the defendants engaged in acts of unfair competition. The county has sent written violation orders and zoning enforcement orders to the defendants since about September 2021.

“Defendants ignored the county’s notices and orders and continued to advertise and conduct events at the venue properties without having the requisite permits to do so,” the lawsuit alleges. “Despite receipt of the cease-and-desist notices, defendants continue to promote and lease, or otherwise allow the venue properties to be marketed, promoted, leased and used as event facilities without requisite land use permits and/or approval from the county.”

The suit says that the resort has generated plenty of complaints from neighbors. 

“Venue properties are nuisances that bring loud and excessive noise, boisterous crowds and DJs and amplified music that blares into the late hours of the night,” the suit alleges. There are also complaints of laser shows, caravans of cars and unpermitted signage on roads.

Rudy Malka, CEO of The Malibu Dream Resort, denied his company did anything wrong. He said that his company’s attorneys have negotiated with L.A. County officials over zoning issues. His company started developing Malibu Dream Resort after the Woolsey Fire of 2018, which burned about 97,000 acres and forced the evacuation of 295,000 people. About 40 percent of the estate’s grounds sustained damage during the fire.

Malka declined to state how much money his company invested in developing the property. It currently offers amenities such as a home theater, a gym, and garage for eight cars, as well as two koi ponds. 

The 10502 Yellow Hill Road mansion also is available for rent for $526,000 per month, according to Zillow. The property — located in the hills above Malibu, mere feet from the Ventura County line — features a 10,000-square-foot mansion on 51 acres, according to its website.

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