MYRTLE BEACH, SC (WMBF) – The owners of a downtown Myrtle Beach business have sued the city and the organizers of the Carolina Country Music Festival over tens of thousands of dollars of revenue they say they lost due to illegal road closures during the event.
According to the lawsuit, which was filed Tuesday, the owners of Nathan's Famous Hot Dogs say they hold an easement on the south side of Eighth Avenue North between Ocean Boulevard and U.S. 17 Business. That road is closed off or public access is "severely or entirely restricted" during CCMF, which has been held over a weekend each June since 2015.
"The Defendants should not be allowed to shut down and use as a parking lot a public street, over which the Plaintiff holds an easement, so as to maximize CCMF's profits while causing significant, resulting financial loss to the Plaintiff," the lawsuit stated.
Nathan's owners said the music festival is held during the restaurant's busiest time of year and they have lost $30,000 in profits over the last three years.
Mark Kruea, Myrtle Beach spokesperson, said the city does not typically comment on pending litigation. A message was left with CCMF organizers seeking comment.
Additionally, the owners claim in the lawsuit that CCMF organizers owe them more than $25,000 in additional lost revenue from the 2016 festival.
The lawsuit states CCMF contracted with Nathan's to provide a space for the restaurant to sell concessions, with the stipulation being they use a cashless electronic system that would wirelessly monitor and document all sales.
Nathan's owners claim the equipment did not operate properly and they did not receive any sales figures until after the three-day festival had ended.
"It then received sales figures from the cashless system required by CCMF that were grossly short of the actual sales made at the concession space, as determined by the Plaintiff through its daily monitoring of its inventories, and as verified by the observations of a Nathan's franchisor representative who was present at the concession space during the entire three days to monitor the sales," the lawsuit states.
According to the plaintiff, CCMF organizers still owe Nathan's approximately $25,171.40 for concessions sold during the 2016 event.