North Myrtle Beach has a monopoly on beach gear setup. A judge just said that’s legal

A two-year legal battle between North Myrtle Beach and Cherry Grove Beach Gear regarding the set-up of chairs and umbrellas on the beach has come to an end with a judge dismissing a lawsuit against the city.

Cherry Grove Beach Gear owners Derek and Jacqueline Calhoun filed a lawsuit against the city in July 2022 , claiming violation of antitrust laws, defamation and violation of state and federal contract clauses, The Sun News previously reported. They claimed in federal court that the city was monopolizing the rental of beach gear on the shores.

A court order released on Sept. 6 stated that North Myrtle Beach has a monopoly on beach equipment setup but that it’s legal under South Carolina law.

The city has prohibited commercial transactions on the beaches since 1981, when the ordinance passed, according to the court order. This includes advertising, selling and completing business transactions. The ordinance was most recently updated in 2007.

South Carolina law cited in the court document states that municipalities are able to “grant franchises and make charges for use of the public beaches.”

Cherry Grove Beach Gear has applied for a franchise agreement to allow the setup of beach furniture on the beach but have been denied twice. Despite being fined over $20,000 and being told repeatedly by the city to stop, the company has continued to set up beach furniture until recently, according to comments and posts on Facebook by Cherry Grove Beach Services .

“A decision has been reached, summary judgment has been granted and our case has been dismissed in favor of the city. We are no longer be allowed to set up chairs on the beach.” Cherry Grove Beach Gear said in a statement on Facebook. “Please be patient as we get our ducks in a row and let you know about what’s next!”

Other beach gear companies work around the ordinance by delivering equipment to rental homes and hotels where patrons are staying instead of the beach.

Beach gear rentals can bring in up to $3 million in revenue to North Myrtle Beach, according to The Sun News.

North Myrtle Beach said in a statement it’s “grateful” for the dismissal of the case. “We want all businesses to thrive in our community, but they must adhere to laws and regulations put into place for the safety and well-being of our citizens and visitors,” the city said.