The Most Magical Lawsuit on Earth? Disney v. DeSantis

In March 2024, Florida Governor Ron DeSantis and The Walt Disney Company settled their two-year-old legal battle, returning control over future development of Disney properties in the Orlando, Florida area to the state.¹[1]Mike Schneider, Settlement reached in lawsuit between Disney and Florida Gov. Ron DeSantis’ allies, AP NEWS (Mar. 27, 2024) https://apnews.com/article/disney-florida-ron-desantis-settlement-91040178ad4708939e621dd57bc5e494. Disney is one of the largest media brands in the world, owning and operating six theme parks worldwide and more than fifteen different television networks and streaming services. Its largest theme park, Walt Disney World in Orlando, draws millions of families from all over the world to the Sunshine State and brings in billions of dollars in revenue annually.²[2]In FY 2022, Disney generated $40.3 billion in economic activity in Florida. In essence, $1 out of every $36 spent in Florida “directly or indirectly came from a Florida Disney experience.” Juliana Kaplan, It’s a small world with a big impact: Disney generated over $40 billion for Florida in fiscal year 2022, BUS. INSIDER (Nov. 16, 2023) https://shorturl.at/depKL. Despite this, DeSantis and Disney were at odds over Florida laws that granted special governing rights to Disney in operating its Florida parks.

How It All Started
In 1967, prior to Walt Disney World’s 1971 opening, Florida created the Reedy Creek Improvement District (“RCID”) as a unique tax entity that gave Disney the power to operate the district like its own town.³[3]History, CENT. FL. TOURISM OVERSIGHT DIST., https://www.oversightdistrict.org/about/history/ (last visited Mar. 12, 2024). The RCID granted a board of supervisors the power to oversee the use of all land in the district – whether owned by Disney or other property owners – and to provide essential services like fire, medical, water systems, and roadway maintenance.⁴[4]Id. Under the RCID charter, Disney was able to stack the Board with members who supported Disney’s interests. This system worked for both Disney and Florida until 2022, when Governor DeSantis and Disney’s then-CEO, Bob Chapek, conflicted over the “Parental Rights in Education Act.”

“Don’t Say Gay”
The “Parental Rights in Education Act,” infamously dubbed the “Don’t Say Gay” bill, protects the rights of parents to make decisions regarding their children’s education and prohibits public school instruction on sexual orientation or gender identity for students in kindergarten through third grade.⁵[5]GOVERNOR RON DESANTIS SIGNS HISTORIC BILL TO PROTECT PARENTAL RIGHTS IN EDUCATION, FL Gov., https://www.flgov.com/2022/03/28/governor-ron-desantis-signs-historic-bill-to-protect-parental-rights-in-education (last visited May 21, 2024). While the legislation was pending, several companies “with a major presence in Florida” opposed the Act as anti-LGBTQ and added their names to a Human Rights Campaign and Freedom for all Americans Education Fund petition.⁶[6]Businesses like Uber, Unilever, Apple, Google, Warner Music Group, and Amazon signed this petition before the Don’t Say Gay bill, but IHG Hotels and United Airlines signed it immediately after. Annika Kim Constantino, Businesses oppose Florida’s ‘Don’t Say Gay’ ban on discussion of LGBTQ issues in public schools, CNBC (Mar. 29, 2022) https://www.cnbc.com/2022/03/29/businesses-oppose-floridas-dont-say-gay-bill-banning-talk-of-lgbtq-issues-in-public-schools.html. Initially, Disney did not make a statement regarding the Act nor did it sign the petition. Chapek eventually spoke out against the Act after Disney’s initial silence on the matter raised concerns from the media, fans, and employees.⁷[7]Anthony Izaguirre, ‘Don’t Say Gay’ bill signed by Florida Gov. Ron DeSantis, AP NEWS (Mar. 28, 2022) https://apnews.com/article/florida-dont-say-gay-law-signed-56aee61f075a12663f25990c7b31624d. Chapek also confirmed that the company would be pausing its political donations in the State of Florida—a sizeable loss.⁸[8]Id.

Legislative Response to Disney’s Criticism of the Parental Rights in Education Act
In February 2023, following Disney’s public stance against the Parental Rights in Education Act, Republican-led Florida government passed a law dissolving the RCID, stripping Disney of the governing power it held over the district for more than fifty years.⁹[9]Brookes Barnes, DeSantis Declares Victory as Disney Is Stripped of Some 56-Year-Old Perks, THE N.Y. TIMES (Feb. 10, 2023) https://www.nytimes.com/2023/02/10/business/disney-world-florida-tax-board.html. Instead, the law gave Governor DeSantis the power to appoint the supervisory board of the RCID, renamed the Central Florida Tourism Oversight District (“CFTOD”).¹⁰[10]Nate Beck, Disney Loses Free Speech Suit Against DeSantis, LAW360 (Jan. 31, 2024) https://www.law360.com/articles/1792534/disney-loses-free-speech-suit-against-desantis. The CFTOD is now controlled by DeSantis’ political appointees who vote on development and construction projects throughout the district, including Disney World.¹¹[11]Id. In anticipation of this legislative reform, the old RCID approved a 30-year resort expansion plan and adopted restrictive covenants that would shift control of future construction projects to the Disney company rather than the RCID.¹²[12]David Minsky, Fla. Board Urges Court To Void Disney ‘Backroom’ Land Deals, LAW360 (Aug. 17, 2023) https://www.law360.com/articles/1712110?scroll=1&related=1. When the DeSantis-appointed board took control of the CFTOD, they challenged these plans.¹³[13]Id.

The Feud Turns to the Courts
The battle shifted to the courts with Disney filing a lawsuit in April 2023 that claimed that the Governor and his allies violated the company’s free speech rights by enacting the CFTOD law in retaliation for the company’s criticism of the Parental Rights in Education Act.¹⁴[14]Complaint at 1, Walt Disney Parks & Resorts U.S., Inc. v. DeSantis, No. 4:23-CV-00163-MW-MAF, 2023 (N.D. Fla. April 26, 2023). The district court dismissed the lawsuit on the pleadings, holding that the CFTOD law is facially constitutional because a state legislature is free to determine the structure of special business districts. Accordingly, the court ruled the law cannot be challenged on First Amendment grounds by claiming the lawmakers had improper motives.¹⁵[15]Order Granting Motion to Dismiss at 4, Walt Disney Parks & Resorts U.S., Inc. v. DeSantis, No. 4:23-CV-163-AW-MJF, 2024 WL 442546 (N.D. Fla. Jan. 31, 2024). Disney appealed the dismissal to the Eleventh Circuit.¹⁶[16]Plaintiff’s Notice of Appeal, Walt Disney Parks & Resorts U.S., Inc. v. DeSantis, No. 4:23-CV-00163-AW-MJF, (N.D. Fla. Feb. 1, 2024).

Separately, the Governor and the CFTOD board sued Disney in state court alleging that the development plans passed by the RCID board in anticipation of legislative reform violated the Florida Constitution and rules that require public notice and opportunity to comment on such exercises of government authority.¹⁷[17]Central Florida Tourism Oversight District v. Walt Disney Parks and Resorts U.S., Inc., No. 2023-CA-011818, (Fla. May 1. 2023) As noted, that lawsuit was settled last month in an agreement that sets the stage for negotiations between Disney and the CFTOD board for a new Disney resort expansion plan and requires Disney to put its federal appeal on hold.

Disney has agreed to invalidate any last-minute RCID actions, including the restrictive covenants and the plan to shift control of Disney World construction to the company rather than the board.¹⁸[18]David Minsky, Disney, Florida District Reach Agreement On Land Use Suit, LAW360
https://www.law360.com/articles/1818490/disney-florida-district-reach-agreement-on-land-use-suit.
It’s yet to be seen whether negotiations on future Disney World expansion will be successful, or if the Disney-DeSantis feud will reignite.

Written by: Emily Osgood
Emily is a 2026 J.D. Candidate at Brooklyn Law School.