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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MR.Dis8 days ago

To give an example, I am retired from JP Morgan Chase, the provider of Disney Visa charge cards. I was eligible to purchase WDW and Disneyland tickets thru a portal for 20% off the rack rate. I do not know if that is still the case. While I was an annual pass holder purchasing thru DVC, I would purchase tickets for my kids when they visited WDW with their families. It was a significant savings.

flyakite8 days ago

Should anyone be interested and would like to attend:

michmousefan21 days ago

cranbiz22 days ago

Not really a distortion of facts. Yes, RCID was a legally a separate entity from TWDC. In reality, it was controlled by WDW, which is why DeSantis had a hard on for getting revenge on TWDC for "don't say gay" and other woke policies by trying to revoke the district. He couldn't do that for many reasons so he got the law changed to appoint his own governing board. As we know, that really did fail miserably and there is now a board that is not antagonistic towards Disney. There is a charge for those benefits to the third party entities in some way, shape or form. WDW doesn't give anything away for free. RCID (and many third party operating participants) pay for those benefits (usually at a very reduced rate). So, in the case of RCID, Disney paid for those benefits through it's tax assessments because RCID has no income of it's own except for income received from it's taxpayers (of which TWDC is it's largest and majority taxpayer). So, what I said was true. WDW paid for the benefits granted by RCID to it's employees and RCID, by granting those benefits paid WDW back for them. This keeps everything legal. Yes, CFTOD wanted to stick it to Disney by refusing to pay WDW for those benefits, which in turn stuck it to the employees. RCID and CFTOD employees were never WDW Cast Members, they were employees of RCID or are/were employees of CFTOD.

LAKid5322 days ago

It takes little time to release a completed report. Unless that report didn't say exactly what you wanted it to say....

LAKid5322 days ago

Governor's office receives a FOIA (govt in the Sunshine) request... "What's sunshine?" 🙄

LAKid5322 days ago

🤫

LAKid5322 days ago

Florida statute says state records are open to the public. It doesn't say how quickly agencies have to provide the info. When I worked for various state agencies, we tried getting the requested info as quickly as possible. If it was a state legislator or governor's office, yesterday wasn't fast enough. 😉

LAKid5322 days ago

Bingo

Chi8422 days ago

So they had to ferret it out as opposed to the government releasing it to the news agencies. That’s understandable. Those requests can take a surprisingly long time to fulfill.

Stripes22 days ago

WKMG submitted a public records request. That request was just recently fulfilled and the document released. WKMG hasn’t said when they submitted the request.

Unbanshee22 days ago

Lol, you must be new here. The state doesn't like to "live in the sunshine" when it comes to matters that the esteemed governor finds personally difficult

Chi8422 days ago

The memo is dated June 21. Reporting on it the day after Christmas seems to be the definition of “old news.” Although it could be that Florida dragged its feet releasing it for some reason.

TiggerDad22 days ago

When you want to bury a story, you release it at Christmas when no one is paying attention to the news.