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Settlement reached in lawsuit between Disney & Florida Gov. DeSantis’ allies

Allies of Gov. Ron DeSantis and Disney reached a settlement agreement Wednesday in a state court fight over how Walt Disney World is developed in the future following the takeover of the theme park resort’s government by the Florida governor.

Quick Read

  • Settlement Reached: Allies of Governor Ron DeSantis and Disney have reached a settlement in a state court battle concerning the future development of Walt Disney World, marking the end of nearly two years of litigation initiated by DeSantis’ takeover of the theme park resort’s government.
  • Board Approval: The Central Florida Tourism Oversight District’s board, appointed by DeSantis, approved the settlement, which was sparked by Disney’s opposition to Florida’s controversial “Don’t Say Gay” law.
  • Disney’s Response: Jeff Vahle, President of Walt Disney World Resort, expressed satisfaction with the settlement, stating it would foster constructive engagement and support continued investment and job creation in Florida.
  • Background of Dispute: The conflict began when Disney opposed the “Don’t Say Gay” law, leading to DeSantis’ takeover of the district’s governing board. Disney then sued DeSantis and the new board members, alleging violation of free speech rights, but the lawsuit was dismissed by a federal judge.
  • Pre-Takeover Actions: Before the DeSantis-appointed board took over, the previous board members, who were Disney allies, signed agreements with Disney transferring control over design and construction to the company. The new board claimed these agreements diminished their authority and sued Disney in state court to invalidate the contracts.
  • Disney’s Counterclaims: Disney responded with counterclaims in the state court, seeking validation and enforcement of the agreements made before the board’s takeover.

The Associated Press has the story:

Settlement reached in lawsuit between Disney & Florida Gov. DeSantis’ allies

Newslooks- ORLANDO, Fla. (AP) —

Allies of Gov. Ron DeSantis and Disney reached a settlement agreement Wednesday in a state court fight over how Walt Disney World is developed in the future following the takeover of the theme park resort’s government by the Florida governor.

In a meeting, the members of the board of the Central Florida Tourism Oversight District approved the settlement agreement, ending almost two years of litigation that was sparked by DeSantis’ takeover of the district from Disney supporters following the company’s opposition to Florida’s so-called “Don’t Say Gay” law.

The 2022 law bans classroom lessons on sexual orientation and gender identity in early grades and was championed by the Republican governor, who used Disney as a punching bag in speeches until he suspended his presidential campaign this year.

FILE – Florida Gov. Ron DeSantis delivers remarks during a press conference at the Central Florida Tourism Oversight District headquarters at Walt Disney World, in Lake Buena Vista, Fla., Thursday, Feb. 22, 2024. Allies of DeSantis and Disney reached a settlement agreement Wednesday, March 27, in a lawsuit over who controls Walt Disney World’s governing district. (Joe Burbank/Orlando Sentinel via AP, File)

The district provides municipal services such as firefighting, planning and mosquito control, among other things, and was controlled by Disney supporters for most of its five decades.

Jeff Vahle, president of Walt Disney World Resort, said in a statement Wednesday that the company was pleased a settlement had been reached.

“This agreement opens a new chapter of constructive engagement with the new leadership of the district and serves the interests of all parties by enabling significant continued investment and the creation of thousands of direct and indirect jobs and economic opportunity in the state,” Vahle said.

As punishment for Disney’s opposition to the law, DeSantis took over the governing district through legislation passed by the Republican-controlled Florida Legislature and appointed a new board of supervisors. Disney sued DeSantis and his appointees, claiming the company’s free speech rights were violated for speaking out against the legislation. A federal judge dismissed that lawsuit in January.

FILE – The Cinderella Castle is seen at the Magic Kingdom at Walt Disney World, July 14, 2023, in Lake Buena Vista, Fla. Allies of Florida Gov. Ron DeSantis and Disney reached a settlement agreement Wednesday, March 27, 2024, in a lawsuit over who controls Walt Disney World’s governing district.(AP Photo/John Raoux, File)

Before control of the district changed hands from Disney allies to DeSantis appointees early last year, the Disney supporters on its board signed agreements with Disney shifting control over design and construction at Disney World to the company. The new DeSantis appointees claimed the “eleventh-hour deals” neutered their powers and the district sued the company in state court in Orlando to have the contracts voided.

Disney filed counterclaims that include asking the state court to declare the agreements valid and enforceable.

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