Florida’s recent legislation aimed at restricting Disney’s actions may unexpectedly end up benefiting the company, particularly concerning an ongoing lawsuit related to development at Walt Disney World in Orlando.
A longstanding feud between Governor Ron DeSantis and Disney \\\\ when the company criticized a Florida education law dubbed “Don’t Say Gay.” This angered DeSantis, leading to retaliatory measures against Disney and subsequent legal battles. Disney filed a federal lawsuit on April 26, alleging a “targeted campaign of government retaliation” orchestrated by DeSantis and his allies.
In response, the tax district, now under DeSantis’ control, filed a lawsuit against Disney in state court on May 1. The district sought to invalidate contracts with Disney that established development plans for the resort. Shortly after, at DeSantis’ request, the Florida Legislature passed a bill prohibiting the district from honoring the contracts, which DeSantis signed into law on May 5.
On Tuesday, Disney submitted a motion to dismiss the state court case. While this filing is a regular legal maneuver aimed at focusing on the federal lawsuit, the company’s argument regarding the dismissal was unexpected. Disney claimed that DeSantis and the Legislature’s subsequent actions rendered the lawsuit irrelevant, making any court order regarding the contracts legally inconsequential.
Disney emphasized that issuing a declaration on the enforceability or validity of the contracts would amount to an advisory opinion without real-world consequences, which is prohibited under Florida law. The company cited over 40 court rulings to support its position.
The tax district’s spokesman, Alexei Woltornist, called Disney’s motion predictable and viewed it as an acknowledgment of an impending loss. A spokesperson for Governor DeSantis refrained from commenting at the time.
Disney’s filing suggested that if the state judge allows the case to proceed, it should be stayed while the federal lawsuit unfolds. The company cited Florida’s principle of priority, which recognizes the precedence of federal court proceedings over state proceedings.
The ongoing dispute between DeSantis and Disney centers around a special tax district established 56 years ago. This district granted Disney significant control over various aspects, including fire protection, policing, waste management, energy generation, road maintenance, bond issuance, and development planning.
Similar districts exist throughout Florida, such as those covering The Villages, a large senior-living community, and Daytona International Speedway and its surrounding area.
Lawmakers recently authorized the governor to appoint an oversight board for the Disney district to limit the company’s autonomy. However, when the appointed members assumed their roles, they discovered that the previous Disney-controlled board had already approved development contracts that restrict the new board’s authority for several decades.
According to company disclosures, Disney paid and collected $1.2 billion in state and local taxes in 2022. The company announced earlier this year that it had allocated $17 billion for resort expansion over the next decade, which would generate an additional 13,000 jobs. Recently, Disney stated that it is evaluating where to direct future investments for theme park construction, alluding to the ongoing standoff in Florida.
