Disney fights Florida Governor and seeks damages

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Florida Governor Ron DeSantis might state that he has put his longstanding dispute with Disney behind him, but Disney is not relenting. The House of Mouse has submitted counterclaims, including an allegation of breaching contracts, against the board of supervisors chosen by DeSantis to oversee the special tax district of Walt Disney World. These actions were detailed in a court filing on Thursday.

Disney is seeking compensation for the alleged breach and a court mandate for the district to adhere to the development contracts that are at the center of the legal conflict between Disney and DeSantis. These requests were outlined in a 55-page document that rebuts the allegations made by the district board in their state-level lawsuit against Disney. Within this filing, Disney has also presented 12 “affirmative defenses” against the board, one of which is asserting that the board lacks the standing to make their claims.

Disney has initiated a federal lawsuit against DeSantis and his chosen board members, claiming political retaliation after the company criticized the controversial “Don’t Say Gay” classroom bill. This legal action stems from DeSantis and his supporters targeting the special tax district, previously known as the Reedy Creek Improvement District, which has permitted Florida’s Walt Disney World to govern its own operations since the 1960s. DeSantis effectively assumed control over the district, replacing the existing five-member board with his preferred appointees and renaming it the Central Florida Tourism Oversight District (CFTOD).

Before this new board came into power, Disney formulated development agreements that were meant to safeguard its investments in Florida amid perceived escalating retaliation from the state government. The new board claimed that these contracts were covertly introduced to undermine their authority, and they voted to invalidate them, leading Disney to file a lawsuit.

Shortly thereafter, the DeSantis-appointed board launched a counter lawsuit in the 9th Judicial Circuit Court in Orange County, Florida, arguing that Disney lacked the authority to enter into these contracts and that the previous board did not provide sufficient notice while formulating them.

In the ongoing legal battle, the board has asked the court to decide in their favor on five of their nine claims against Disney without going through a trial.

This complex legal clash is unfolding in two separate courtrooms, and there is no sign of it reaching a resolution soon. Disney’s attempt to have the state-level case dismissed was unsuccessful last month, and similar endeavors by DeSantis and the CFTOD board to dismiss the federal case are still pending a ruling.

Despite his involvement in the legal dispute, DeSantis, who is vying for the Republican presidential primary nomination against former President Donald Trump, has indicated that he wants the conflict to conclude. In a recent interview, DeSantis urged Disney CEO Bob Iger to drop the lawsuit, contending that Disney is destined to lose. He stated that he and his allies have essentially moved on.

DeSantis, known for his willingness to take decisive actions on politically charged societal matters, which propelled him to national prominence, has frequently raised his conflict with Disney on the campaign trail. He has criticized the company for adopting what he labels “woke” stances and has accused them of sexualizing children—an accusation that Iger dismissed as “absurd.”

(Source: Kevin Breuninger | CNBC)

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