Settlement Reached in Lawsuit Between Disney and Florida Gov. Ron DeSantis’ Allies – On Wednesday, allies of Governor Ron DeSantis and representatives from Disney finalized a settlement agreement in a state court dispute regarding the future development of Walt Disney World. This resolution comes after Governor DeSantis took control of the theme park resort’s government, leading to nearly two years of legal battles.
The conflict originated from Disney’s opposition to Florida’s “Don’t Say Gay” law, which prohibits discussions on sexual orientation and gender identity in early-grade classrooms. Governor DeSantis, a proponent of the law, had previously criticized Disney in his speeches before suspending his presidential campaign this year. The Central Florida Tourism Oversight District board members approved the settlement agreement, putting an end to the prolonged litigation.
This district, responsible for various municipal services like firefighting and planning, had been predominantly supported by Disney for most of its existence. Jeff Vahle, President of Walt Disney World Resort, expressed satisfaction with the settlement in a statement issued on Wednesday. “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.
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As a consequence of Disney’s opposition to the legislation, Governor DeSantis assumed control of the governing district through legislation enacted by the Republican-dominated Florida Legislature, appointing a fresh board of supervisors. Disney responded by suing Governor DeSantis and his appointees, alleging infringement of the company’s freedom of speech rights due to its vocal stance against the legislation. However, a federal judge dismissed this lawsuit in January.
Prior to the transition of control over the district from Disney-affiliated individuals to DeSantis-appointed officials in early the preceding year, those aligned with Disney on the board had entered into agreements with the company, transferring authority over design and construction at Disney World to Disney. The newly appointed representatives by DeSantis argued that these last-minute agreements significantly limited their authority. Consequently, the district initiated legal action against Disney in an Orlando state court to nullify these contracts.
In response, Disney submitted counterclaims, including a request for the state court to affirm the validity and enforceability of the agreements. Per the terms of the settlement reached on Wednesday, Disney acknowledges the determination made by the board appointed by DeSantis that the comprehensive plan endorsed by Disney-affiliated members before the transition is void.
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Furthermore, Disney agrees that both the development agreement and restrictive covenants established prior to the transition are also invalid, as per the settlement conditions. Instead, the settlement specifies that a comprehensive plan from 2020 will be upheld, with the new board retaining the authority to make alterations as necessary. Additionally, the agreement suggests that Disney and the new board will engage in negotiations for a new development agreement in the near future.
