Lawsuit
On April 26, 2023, at the first meeting of the Central Florida Tourism Oversight District board, the members voted to nullify Reedy Creek's transfer of control of the district to Disney.[24]
Within minutes of the meeting, Disney v. DeSantis was filed in federal court. In the case, Walt Disney Parks and Resorts sued DeSantis, Florida Department of Economic Opportunity acting secretary Meredith Ivey, and the Central Florida Tourism Oversight District board, accusing them of violating the company's First Amendment rights by utilizing political power for "government retaliation" purposes.[25] The lawsuit states that DeSantis' actions "jeopardizes its economic future in the region, and violates its constitutional rights" and highlighted its value to the state of Florida; Disney is one of the largest employers in the state, provided US$1.1 billion in state and local taxes,[26] and helps drive tourism.[27] The lawsuit was filed by Daniel Petrocelli on Disney's behalf, a lawyer based in Los Angeles whose services were requested by former president Donald Trump in a 2016 class action lawsuit against the now-defunct Trump University.
The case was assigned to United States District Court for the Northern District of Florida chief judge Mark E. Walker, appointed by former president Barack Obama, who handed a victory to six University of Florida professors in a First Amendment case in 2022.[28] U.S. magistrate judge Martin Fitzpatrick recused himself from the case due to a conflict of interest.[29]
On May 1, 2023, the Central Florida Tourism Oversight District board voted to countersue Disney.[30]
On June 1, 2023, Chief Judge Walker ruled against a motion by DeSantis to disqualify him due to previous comments in unrelated cases. However, Walker recused himself on the same day, after learning that a relative owned stock in Disney.[31][32] The case was reassigned to Judge Allen C. Winsor, appointed by former president Donald Trump, who previously dismissed a case against the state involving the Florida Parental Rights in Education Act that is in the middle of the Disney v. DeSantis lawsuit. Judge Winsor was also previously the Solicitor General of Florida.[33]
On June 26, 2023, attorneys for DeSantis filed a motion to dismiss Disney's lawsuit claiming that the Governor and Florida legislators have "legislative immunity."[34] The lawsuit was dismissed on January 31, 2024.[35] The next day, Disney filed an appeal to the 11th Circuit Court of Appeals.[1][2]
On March 27, 2024, Disney and DeSantis reached a settlement in state court, in which Disney agreed to suspend its appeal, while it negotiated a new development agreement with the state.[3] While the settlement cleared the way for the DeSantis-backed Central Florida Tourism Oversight District to exert more control over Disney's operations, it came only after DeSantis replaced the two most vocal Disney critics on the board with Disney supporters.[6][7] It also came two weeks after The Parental Rights in Education Act was largely overturned by a court.[8][9]