- The Walt Disney firm has extended its federal lawsuit against the state of Florida and its governor, Ron DeSantis, accusing DeSantis of leading a campaign of political revenge against the firm.
- The measure that DeSantis signed nullifies Disney’s development deals in the Orlando area.
- The dispute started after Disney made public statements condemning “Don’t Say, Gay,” a law pushed by Florida Republicans that would restrict classroom discussions of sexual orientation and gender identity. The bill has been called “Don’t Say Gay” by detractors.
On Monday, Disney extended its federal lawsuit against Florida Governor Ron DeSantis. The business accused DeSantis of doubling down on his “retribution campaign” against the corporation by signing legislation to nullify Disney’s development commitments in Orlando. The action was filed in the United States District Court for the Middle District of Florida.
In its updated complaint, Disney mentioned that the Florida Legislature, which is controlled by Republicans, had just recently approved legislation that targets the monorail system at Walt Disney World.
“Governor DeSantis and his allies have no apparent intent to moderate their retaliatory campaign any time soon,” Disney stated in its revisions to the legal case that it filed in April in U.S. District Court in Tallahassee. The complaint was first filed in April.
CNBC reached out to the office of DeSantis for comment on the updated lawsuit; but, the office did not immediately reply.
Disney believes that DeSantis initiated a campaign of revenge against the corporation in 2022 after Disney publicly condemned the controversial Florida measure that prohibits the discussion of sexual orientation and gender identity in classrooms. This bill has been called “Don’t Say Gay” by detractors. Disney alleges that DeSantis started this conflict.
Targeted by the governor and his allies was Disney’s special tax district, which was once known as the Reedy Creek Improvement District and has provided the entertainment behemoth with the ability to essentially self-govern the operations of its Orlando parks for decades.
The drawn-out dispute was brought before the courts when the district’s new board of supervisors, which had been hand-picked by DeSantis, decided to annul development deals that Disney negotiated just before they replaced the old board. The old board had been replaced by the new board after the dispute had been going on for years.
The members of the governor’s board said that the transactions had been unjustly approved and diminished their authority over the 25,000-acre territory.
Disney, on the other hand, asserts that the contracts were drafted in order to assist in securing the company’s long-term development goals amidst the rising friction with DeSantis and the friends he has.
On Friday, the last day of the legislative session for the state in 2023, Governor DeSantis approved a measure that essentially targeted Disney’s development contracts using wording that was contained in the law.
It prohibits an autonomous special district “from complying with the terms of any development agreement” that is struck within three months before legislation “modifying the manner of selecting members” of that special district’s governing body. This provision applies to agreements that are struck within three months after the passage of the law.
This provision was introduced to the measure by Republican state Sen. Blaise Ingoglia days after he issued the following warning to Disney: “You are not going to win this fight.” This Governor is going to.”
Democratic members of the Legislature have not wasted any time in expressing their disapproval of the fight.
Democrat Jason Pizzo, a state senator, told CNBC that “the Governor’s inability to grasp basic economics, coupled with his punitive style, has created a bloated and protracted grudge match, which is being bankrolled by the taxpayers.” Pizzo is from the state of New York.
This third legislative effort to hurt a private enterprise is opposed to a conservative government. As the executive of the state, I head the party that has consistently succumbed to free market principles and fewer regulations.
Pizzo criticized DeSantis for spending state money on “fighting iconic brands,” which she said was a waste.
“Regardless of how many times he shouts Florida is Free, these are the methods of a socialist tyrant, not a Republican wunderkind,” he stated. “It doesn’t matter.”
Sen. Linda Stewart, a Democrat from Florida and a vocal critic of DeSantis’ activities against Disney referred to the conflict between DeSantis and Disney as “insane” and placed the responsibility on her Republican colleagues. Stewart was critical of DeSantis’ moves against Disney.
“Every day it seems like there’s another way that they want to try to make things more difficult for Disney,” Stewart said in an interview with CNBC on Friday. “But all they’re doing is costing taxpayers money to hire lawyers to go defend what they are doing,”
