An appellate court in Florida has granted Disney's request for a two-month pause in a federal lawsuit against Florida Governor Ron DeSantis and his appointees to Walt Disney World's governing district. This decision comes after the two parties reached a settlement on separate litigation in state court.
Last month, a settlement deal was reached between Disney and the DeSantis-appointed Central Florida Tourism Oversight District, resolving two Florida lawsuits. The disputes arose after DeSantis took control of the theme park's governing board, leading to disagreements over the future development of Disney World.
As part of the settlement, Disney agreed to halt the separate federal lawsuit, which is currently under appeal, to allow for negotiations on a new development agreement with the DeSantis appointees. The district, previously controlled by Disney supporters for five decades, now operates under the supervision of DeSantis appointees.
The settlement marks the end of nearly two years of litigation that began when DeSantis assumed control of the district from Disney supporters due to the company's opposition to Florida's 'Don't Say Gay' law. This law, enacted in 2022, prohibits classroom discussions on sexual orientation and gender identity in early grades and was strongly supported by Governor DeSantis.
In response to Disney's opposition to the law, DeSantis appointed a new board of supervisors and took over the governing district through legislative action. Disney subsequently filed a lawsuit against DeSantis and his appointees, alleging violations of the company's free speech rights. Although a federal judge dismissed the lawsuit in January, Disney appealed the decision.
Prior to the appointment of DeSantis supporters to the board, Disney had been granted control over the design and construction of Disney World. The new appointees argued that previous agreements had limited their authority and filed a lawsuit in state court seeking to invalidate the contracts. Disney, in turn, filed counterclaims and requested the court to uphold the agreements.
Under the terms of the settlement, the development agreement and covenants granting Disney design and construction control will be deemed null and void. The new board has agreed to operate under a pre-existing master plan that was in effect before DeSantis assumed control of the district.
