Disney sues Florida Governor Ron DeSantis for 'campaign of government retaliation'

Apr 26, 2023 in "The Walt Disney Company"

Posted: Wednesday April 26, 2023 12:00pm ET by WDWMAGIC Staff

Walt Disney Parks and Resorts has filed a lawsuit against Florida Governor Ron DeSantis following today's board meeting of the Central Florida Tourism Oversight District where it approved the motion to void Disney's agreements with Reedy Creek.

Named in the lawsuit alongside the Governor is the entire DeSantis appointed board of the new governing district. Law firms Wilmer Cutler Pickering Hale and Dorr LLP of New York, O'Melveny & Myers LLP of Los Angeles, and Losey PLLC of Orlando Florida are acting as attorneys for Disney.

In the lawsuit, Disney asks the Court to:

  • Declare that the Legislative Declaration is unlawful and unenforceable because it abrogates Disney’s rights in violation of the Contracts Clause;
  • Declare that the Legislative Declaration is an unlawful taking of Disney’s property rights without payment of just compensation in violation of the Takings Clause;
  • Declare that the Legislative Declaration is unlawful and unenforceable because it was an arbitrary and irrational voiding of the Development Agreement and Restrictive Covenants in violation of the Due Process Clause;
  • Declare that the Legislative Declaration is unlawful and unenforceable because it was enacted in retaliation for Disney’s speech in violation of the First Amendment;
  • Declare that the Contracts remain in effect and enforceable;
  • Declare that Senate Bill 4C and House Bill 9B are unlawful and unenforceable because they were enacted in retaliation for Disney’s political speech in violation of the First Amendment;
  • Issue an order enjoining Defendants from enforcing the Legislative Declaration;
  • Issue an order enjoining Defendants from enforcing Senate Bill 4C and House Bill 9B;
  • Award Plaintiff its attorney’s fees and costs; and
  • Grant such other relief as this Court may deem just and pro

In a federal court filing with the U.S. District Court for Northern District of Florida, Disney says:

1. For more than half a century, Disney has made an immeasurable impact on Florida and its economy, establishing Central Florida as a top global tourist destination and attracting tens of millions of visitors to the State each year. People and families from every corner of the globe have traveled to Walt Disney World because of the unrivaled guest experience it provides and the deep emotional connection that generations of fans have with Disney's timeless stories and characters.

2. A targeted campaign of government retaliation-orchestrated at every step by Governor DeSantis as punishment for Disney's protected speech-now threatens Disney's business operations, jeopardizes its economic future in the region, and violates its constitutional rights.

3. Today's action is the latest strike: At the Governor's bidding, the State's oversight board has purported to "void" publicly noticed and duly agreed development contracts, which had laid the foundation for billions of Disney's investment dollars and thousands of jobs. This government action was patently retaliatory, patently anti-business, and patently unconstitutional. But the Governor and his allies have made clear they do not care and will not stop. The Governor recently declared that his team would not only "void the development agreement"-just as they did today-but also planned "to look at things like taxes on the hotels," "tolls on the roads," "developing some of the property that the district owns" with "more amusement parks," and even putting a "state prison" next to Walt Disney World. "Who knows? I just think the possibilities are endless," he said.

4. Disney regrets that it has come to this. But having exhausted efforts to seek a resolution, the Company is left with no choice but to file this lawsuit to protect its cast members, guests, and local development partners from a relentless campaign to weaponize government power against Disney in retaliation for expressing a political viewpoint unpopular with certain State officials.

You can read the entire 77 pages of the lawsuit here.

Following Disney's lawsuit filing today, the governor's office released a statment. "We are unaware of any legal right that a company has to operate its own government or maintain special privileges not held by other businesses in the state. This lawsuit is yet another unfortunate example of their hope to undermine the will of the Florida voters and operate outside the bounds of the law."

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castlecake2.07 days ago

Yes

Stripes7 days ago

Has Disney/CFTOD continued to replace the purple direction signage with the new blue color scheme since CFTOD took over?

mkt7 days ago

You're right. The new document will be different. It will be "different" in the way that Chris Gaines was "different" from Garth Brooks or how the drummer from Nirvana is "different" from the singer of the Foo Fighters.

Unbanshee7 days ago

Both are effectively picked by the Governor, just not technically. Look no further than the communications "strategy" with the replacement of Gilzean of the Governor's office getting out ahead of every single step of the process

lazyboy97o7 days ago

The settlement acknowledged the “need” to change the comprehensive plan, which undermines this idea. So too does the lack of an agreement, as the 2032 Comprehensive Plan wasn’t that different than the again in force 2020 Comprehensive Plan.

Brian7 days ago

That's understandable for sure. I just felt inclined to make the distinction due to the ongoing conversation, as the district administrator is selected by the board, while the board is selected by the governor.

mkt7 days ago

The new agreement will be functionally the same as the one Disney was sued over.

pdude817 days ago

You're right. This has been going on so long I just lumped all the antagonists together.

Brian7 days ago

Not to nitpick, but Gilzean was district administrator, not a board member.

pdude817 days ago

A bigger risk than keeping Garcia and Gilzean on the board as active disruptors? I don't agree with their decision to stall the federal lawsuit, but I understand why they saw the status quo as a risk to growth over the next few years.

lazyboy97o7 days ago

You don’t think dropping your bargaining power in the middle is the best strategy in a negotiation?

flynnibus7 days ago

Again… we know nothing except both sides have shown signs of positive attitude and certainty of successful outcomes. What does that mean? None if us know. All we can speculate is… they know a lot more than they have said publicly… and obvious things like "desantis is not perpetual…" were clearly obvious to them when they made these choices.

UNCgolf7 days ago

That seems wildly optimistic.

flynnibus7 days ago

“Right now…” Yes, we all know this. But again, we don’t know what back room deal they have setup. Who knows… it could even include new legislation promises… Or Disney is just rolling with the hand they are dealt… maybe they have accepted that the time to sunset their advantages of rcid is here… none of us can tell what their true intentions are right now.