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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mkt3 hours ago

I already said aligned, don’t let me pull out any more MBA buzzwords

JoeCamel22 hours ago

Waaa? No flywheels?

mkt23 hours ago

I'd take it as an indication of infrastructure improvements aligned to potential new construction. Similar to the road construction and electrical infrastructure put in place across town before Epic Universe was announced.

AJFireman1 day ago

It was sent to the Palm Springs Air Museum for an interior restoration. There were many articles after D23 when that happened. Here is the article posted to the Company website and yes its open to the public. Also the PS Air Museum just made a post about it 6 days ago on their social media accounts. https://thewaltdisneycompany.com/disney-announces-restoration-and-recreation-of-the-interior-of-walt-disneys-plane-to-its-1960s-design/ Here are some pics of the interior stripped. Couldnt find anything about how far along they are with the restoration. https://palmspringsairmuseum.org/restorations/

JKick951 day ago

Right. That makes sense. I was just curious to whether or not some comments should be read into as a positive sign of good things to come. For example yesterday RCES commented “property expansions are coming” and therefore their organization is concerned and partnering with outside agencies. The board and/or district administrator (I forgot specifically what was said) kind of said something along the same lines.

mkt1 day ago

They likely know at a high level what they are as well as projections of the impacts to the district in order to allow them to prepare. But I doubt that they’re sharing WDI concept art, simulations, moodboards, renderings, etc with the board that not long ago was actively working against Disney.

Monorail_Red_771 day ago

When Walt's Plane was moved from WDW over to CA for the last D23 event. I wondered what would happen to it after the exterior refurb, etc. Well a few days ago I came across a vlogger doing a video on a random Air Museum and surprisingly Walt's Plane is now on loan to the Palm Springs Air Museum. on the Palm Springs Air Museum site it is listed simply as Grumman G-159 Gulfstream. But, the video shows the plane on exhibit outside and then shows some of the same interior items from D23 also on display.

Rosso111 day ago

I would imagine they need to be very much in the loop with Disney’s plans. Most of the infrastructure for major projects begins first with Reedy Creek. For example if the rumors are true much of the reason for all of the work on Floridian Way over the last few years is because Disney plans to develop more land north of the Grand Floridian. Reddy Creek needs to know these things in order to allocate time and funds for these projects.

JKick952 days ago

How much about Disneys plans do they know? Should we take their comments as a positive of things to come?

Stripes2 days ago

There was a lot of focus in the meeting on Disney’s plans to significantly increase investment and that these increased investments are going to require significant infrastructure projects to meet the needs of these Disney investments. The district administrator stressed that the district needs to prepare. RCES (a Disney subsidiary) also mentioned that they have been making changes to staffing structure and bulking up to prepare for Disney’s “upcoming property expansions.”

Batman'sParents2 days ago

There is a budget workshop on August 24, 2024.

Batman'sParents2 days ago

Today is the first time the Board has gone over the proposed 2025 Millage Rates. There is a lot of talk regarding investment in the district by taxpayers like Disney, Disney Springs operators, and hotel operators and the conversations they are having with them. Given the ongoing and future investments needed in the district, in terms of setting the operating millage rate, there appears to be some support for option 1 and option 2: Option 1: Set the Proposed Millage Rate to 14.40 mills. (Debt Service 4.17 mills/Operating 10.23 mills) This raises the Debt Service as needed and raises the Operating millage to fund a 5% increase in expenditures over the Fiscal Year 2023 millage rate. Option 2: Set Proposed Millage Rate to 13.90 mills. (Debt Service 4.17 mills/Operating 9.73 mills) This raises the Debt Service rate as needed and allocates the remaining millage to Operating. This returns the millage rate to the same rate as Fiscal Year 2023. The members of the Board were stressing this is not the final set rate and it can be lower. There appears to be more of a consensus that they want a lower rate, but want all available options. There was a slight hesitation between the members of the Board in choosing what options to set, notably, Board Members Barakat and Aungst were in more in favour of option 1, and board members Peri, Ziegler, and Mateer were more in favour of option 2. After taking a vote to adopt option 1 failed by a vote of two to three, they adopted option 2. BOS Packet: https://www.oversightdistrict.org/wp-content/uploads/2024/06/BOS-Meeting-7-24-24-Draft-Agenda-Packet-PUBLIC.pdf The proposed rates and options are on the second to last page.

StripesJun 18, 2024

What? The new development agreement is based on the existing 2020 Comprehensive plan. There’s just a blurb in there that the district and Disney will amend the agreement in order to give Disney even more development rights once the new comprehensive plan is effective.

mktJun 18, 2024

They are not. And the politization of day to day is affecting morale across the other civil servants. I personally know of two ex-RCID/current-CFTOD employees that are taking an early retirement and starting the same job with a different private or public sector enterprise in the area.