N. Myrtle Beach police officers could be in court over business monopoly fight

A North Myrtle Beach-based equipment rental company suing the city in federal court over antitrust claims could call to the stand every police officer who has cited it for setting up gear on the shore.

The dispute between Cherry Grove Beach Gear and city leaders could change a long-standing business practice aimed at limiting commerce on publicly managed beaches.

Company owners Derek and Jackie Calhoun opened Cherry Grove Beach Gear in 2019 and sued the city in U.S. District Court, alleging its rules violate state and federal antitrust laws and 14th Amendment rights that promise equal protection.

Attorneys for both sides have released their witness rosters ahead of a December trial date.

Here’s who could testify

Cherry Grove’s witness list includes in the Calhouns and Stephen Dailey, listed in court documents as a company representative who has been ticketed by local police.

Accountant Robert Milhous (incorrectly identified as Millhouse in court filings), city finance director Randy Wright, city attorney Chris Noury, every city police officer who’s issued the Calhouns a citation and an unidentified state Department of Revenue employee are also expected to be called on.

Meanwhile, city manager Mike Mahaney will lead the defense’s slate of witnesses with other officials including Munro Reed — city’s beach patrol manager — and Graham Faris, who’s in charge of day-to-day beach operations.

Several members of the city’s finance department are also listed as potential witnesses.

Cherry Grove has racked up thousands in fines as the legal dispute continues

Cherry Grove Beach Gear launched in 2019 allowing customers to rent chairs, umbrellas, surfboards and other goods that would be installed for them directly on the sand.

But a long-standing city ordinance prevented on-site setups by private firms unless they were franchised, with fines of up to $500 a day.

The Calhouns twice applied for a franchise tag and after being denied both times, sought legal action. Last July, Derek Calhoun filed a federal lawsuit accusing North Myrtle Beach of violating state and federal antitrust laws, his company’s 14th Amendment rights that promise equal protection and defamation.

Their 20-page motion says city leaders are violating antitrust laws by refusing to consider them for a franchise allowing the installation of rental equipment on public shores.

City officials, the suit argues, wrote a “sham” law “designed to restrict competitive business practices and monopolize business in order to maximize profits.”

To date, Cherry Grove has accrued more than $41,000 worth of fines.