Can North Myrtle Beach own a private business monopoly? Court will decide

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David Hucks
David Hucks
David Hucks is a 12th generation descendant of the area we now call Myrtle Beach, S.C. David attended Coastal Carolina University and like most of his family, has never left the area. David is the lead journalist at

Judge R. Bryan Harwell ruled that the City of North Myrtle Beach must face a courtroom appearance to determine if the city can legally own a beach rental monopoly.

The ruling was a disappointment for the city, as it attempted to have the case dismissed entirely.

The case reads: Plaintiffs Derek and Jacqueline Calhoun and Cherry Grove Beach Gear, LLC (“CGBG”) filed this suit alleging Defendant City of North Myrtle Beach (“the City”) has sought to monopolize the rental of beach wares on the City’s beaches. The City has filed a motion to dismiss pursuant to Fed. R. Civ. P. 12(b)(6). ECF No. 21. The Court denies in part and grants in part the motion for the reasons herein. Read the entire decision with annotated comments from the judge below.

Judge Harwell denied Cherry Grove Beach Gear’s request for defamation damages. However, the judge ruled the City of North Myrtle Beach must head to court to determine if the city can legally own such a monopoly.

Order Denying in Part Granting in Part Defendants 12b6 Motion by MyrtleBeachSC news on Scribd

Cherry Grove Beach Gear owner Derek Calhoun is a retired U.S. Army Veteran. Company has large support inside the City of North Myrtle Beach and among its customers who rate it highly.

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Cherry Grove Beach Gear set up a legal business inside the City of North Myrtle Beach allowing tourists and locals to have their beach gear placed on the beach by the company and, later, brought back to their rooms by the company at the end of the beach day.

The City of North Myrtle Beach issued a legal business license for the company and taxes the company as well.

However, this past year, the City of North Myrtle Beach began fining the company for the legal business services Cherry Grove Beach Gear provides.


A September 19th post by Cherry Grove Beach Gear states the company was fined $22,500 by the city as of that date.

The post reads: Including our employee’s ticket we are at $22,500 in citations.

We’ve had a good season and had 20 amazing employees work with us. We still have a few customers to service through the end of Oct so if you see the White Nissan Titan with chairs in the back, that’s us!

Our next steps are to do a bit of rebranding, which will include our new and soon to be partners. Our vision is to become a premier concierge service for North Myrtle Beach. The best part is you wouldn’t have to stay at a resort to receive this service. We will also have special pricing for locals.

Can the City of North Myrtle Beach legally own a private business monopoly? That case will now be decided in court.

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