Former Navy diver teaching surf classes without permit sues, accusing Newport Beach of promoting monopoly

A former Navy diver who has taught thousands of clients to surf despite not having a business license to do so in Newport Beach accused the city of promoting a monopoly in a federal lawsuit filed Tuesday.

Since 2012, Newport Beach’s municipal code has required surf and stand up paddle board instructors to obtain written permission from the city’s Recreation and Senior Services Department in order to hold classes at a park, beach or other public facility. This is to make sure that teachers offering their services to the public are insured, properly qualified and have clean backgrounds, city officials said in a statement.

“The city takes seriously its responsibility to assess and investigate those who are teaching courses to residents and visitors under the city’s recreational programs,” Newport Beach spokesman John Pope wrote to the Daily Pilot in an email. “Additionally, by enforcing provisions of the Municipal Code, the city governs how public resources (in this case, public beaches) are used by private companies for the benefit of the public.”

The suit was filed in the U.S. District Court, Central Court, by Pacific Legal Foundation attorneys on behalf of Jason Murchison, who advertises his services under the business name Learn to Surf - Southern California.

Murchison lived in Newport Beach before moving to Huntington Beach in 2018 He has been surfing since childhood, according to the lawsuit.

He is CPR certified and had passed Basic Underwater Demolition/SEAL training before going on to become a diver in the Navy. He contracts about eight other instructors he has personally trained.

“I’ve never found another surf instructor to even have that kind of background,” Murchison told the Daily Pilot during an interview near Blackies on Thursday. “Most of the surf instructors here ... are hiring high school kids. They’re seasonal part-time workers. How is a 16-year-old going to have the training that I have?”

Jason Murchison walks on the sand in Newport Beach. He has sued the city claiming it supports a monopoly by denying him and other qualified instructors license to teach surfing at the beach.

(Brian Feulner courtesy of the Pacific Legal Foundation)

Murchison added that he maintains a $1-million insurance policy in case any unexpected injury or issue occurs during his classes. He has been teaching since about 2014, and, he said, so far none of his students have had any problems.

He has applied for a license in Newport Beach on at least two occasions. He was told both attempts were denied because the city already has enough surf instructors, Murchison said. However, the still unlicensed teacher said he is constantly finding new clients, suggesting that there is a demand for more surf instructors.

About 13 others have applied for licenses to teach surfing in Newport Beach since 2012. Of those, three businesses have been approved, and two operate only during the summer months. Murchison and his Pacific Legal Foundation attorneys say that constitutes a monopoly.

“The city’s monopoly and market power over surfing and SUP lessons offered in the city harms instructors like Mr. Murchison, as well as members of the public seeking to hire instructors,” they allege in their suit.

Other coastal cities, like Huntington Beach, maintain similar ordinances that Murchison claims stifle competition among surf instructors. But he described Newport Beach as the most aggressive in enforcing those laws.

In 2016 the city cited and also sued Murchison for teaching classes. The resulting settlement included an order for Murchison to stop holding classes and has required him to pay the city about $40,000 so far in penalties and legal fees.

“I’m doing everything, above and beyond I would argue, that these other permanent surf schools are doing too, Murchison said. “So that’s just the guise, that it’s public safety. It’s really all about money.”