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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DCBaker1 day ago

The agenda and documents for the CFTOD Board of Supervisors meeting is now available at the link below. Included in this packet are documents related to the FY2023 Annual Financial Statement presentation and an annual audit by Cherry Bekaert, LLP. As a head's up, the meeting has shifted an hour from previous times - it is scheduled to begin at 10:30am. https://www.oversightdistrict.org/wp-content/uploads/2024/04/BOS-Meeting-Packet-4-24-24-Final-P.pdf

flynnibus6 days ago

Looks to be moved https://www.oversightdistrict.org/wp-content/uploads/2024/04/BOS-Meeting-04-24-24-Agenda-Outline.pdf

wdwmagic6 days ago

Amazing, there is actually some real business on the agenda for a change.

DCBaker6 days ago

The agenda outline for the next CFTOD meeting on Wednesday, April 24 is available at this link*: https://www.oversightdistrict.org/wp-content/uploads/2024/04/BOS-Meeting-04-24-24-Agenda-Outline.pdf *Edited to update as the link was changed after posting (thanks @flynnibus!).

flyakite9 days ago

Batman'sParents12 days ago

Was curious about this: Is there an expectation that CFTOD will delegate some responsibilities to the cities as part of the understanding between the state and Disney?

Dcgc2814 days ago

All good! I was going to be blown away lol

MR.Dis14 days ago

error, I edited the original post

mkt15 days ago

Here's the motion

mkt15 days ago

what's the new case number? Disregard, found it. 24-10342-H

Dcgc2815 days ago

They objected the delay?

MR.Dis15 days ago

Federal Judge officially granted a 60 day delay on the Federal Case. Disney requested so a new developement agreement could be negotiated, the CFTOD did not object.

mmascari20 days ago

Same formality as completing the new agreement. They clearly think everyone will work in good faith and get an acceptable resolution. One where not having representation in the CFTOD board is ok.

flynnibus20 days ago

Sounds like walking away from the Federal case is only a matter of formality at this point... or the roof caving in. Those aren't the words of someone cautiously optimistic for an outcome... those are the words of someone who already knows the game plan and they aren't holdiing a gun to anyone.