No. 25-1130October Term 2025Before Arguments
Cherry Grove Beach Gear, LLC, et al., Petitioners v. City of North Myrtle Beach, South Carolina
from the United States Court of Appeals for the Fourth Circuit.
Case status
- Current stage
- Before Arguments
- Latest event
- Accepted by the Court
- Decision timing
- No window until argument is scheduled.
- What it's about
from the United States Court of Appeals for the Fourth Circuit.
Question presented
1. Whether the market participant exception to state action immunity should be adopted under the facts of this case, specifically where the municipality is the sole market participant. 2. Whether the underlying opinion of the Fourth Circuit Court of Appeals erodes the clear articulation test and Parker immunity jurisprudence as developed by this Court. 3. Whether this Court should clarify that, when a municipality uses legislative power to exclude rivals while it provides the challenged service as a commercial provider, the clear-articulation requirement must be applied with heightened rigor to prevent “simple permission to participate” from being converted into authorization to monopolize.
- Case path
United States Court of Appeals for the Fourth Circuit / Accepted by the Court
- Area
Supreme Court case awaiting argument
Timing
Expected by late June 2026, if argued this term
The Court granted review but has not yet scheduled oral argument. Once argued, the median case reaches a decision in 94 days. Nearly all cases are decided by the end of the term in which they are argued.
Briefing
What it's about
Cherry Grove Beach Gear asks the Supreme Court to review a Fourth Circuit decision about when a city gets state-action immunity (protection from federal antitrust claims). The petition says North Myrtle Beach was the sole commercial provider in a market and used legislative power to exclude rivals.
Argument
The case is still at the petition stage, and no oral argument is scheduled yet. The petition asks the justices to adopt a market-participant exception and to more strictly require clear state authorization before a city can block rivals while selling the same service.
Impact
If the Court takes the case, it could reshape how much freedom cities have to sell services while limiting competition. Businesses that compete with a city provider — and customers who may have fewer choices — could be affected.
What is at stake in Cherry Grove Beach Gear?
The petition asks whether a city can claim antitrust immunity while it is the only seller in a market and excludes competitors.
Who could be affected if the Court hears this case?
Cities that sell services, rival businesses, and customers could be affected. A stricter rule could mean more competition and fewer immunity defenses.
What happens next in Cherry Grove Beach Gear?
The justices must first decide whether to grant certiorari (agree to hear the case). If they do, briefing and oral argument would follow.
Related cases
Grounding
- Grounding
- Primary materials plus reporting.
- Note
- Best-effort analysis: this explainer relies on a mix of primary materials and trusted secondary sources. Official filings and opinions remain authoritative.
- Checked
- Jul 17, 2026
- Method
- Methodology