ORLANDO, Fla. — An appeals court on Monday granted Disney’s request for a two-month pause in a federal lawsuit against Florida Governor Ron DeSantis and his appointees in the Walt Disney World Government District after the two sides reached a settlement on individual lawsuits in state court.
Disney’s request last Friday to the federal appeals court was prompted by last month’s settlement agreement involving two Florida lawsuits between Disney and the DeSantis-appointed Central Florida Tourism Oversight District. After DeSantis took over the theme park’s board of directors, the company and the district began fighting in court over how Disney World will be developed in the future.
As part of the settlement, Disney agreed to stay the separate federal lawsuit, which is under appeal, pending negotiations on a new development deal with DeSantis’ appointees. The district provides municipal services such as firefighting, planning and mosquito control, among other things, and was controlled by Disney supporters for most of its five decades until DeSantis appointees took over last year.
Disney had a deadline of next week to file an opening brief in its appeal to the federal Eleventh Circuit Court of Appeals, but that deadline has now been set for mid-June.
The settlement agreement ended nearly two years of litigation sparked by DeSantis’ takeover of the district from Disney supporters following the company’s opposition to Florida’s so-called Don’t Say Gay law.
The 2022 law banned classroom lessons on sexual orientation and gender identity in early grades and was championed by the Republican governor, who used Disney as a punching bag in speeches earlier this year as he ran for president. He has since dropped out of the race.
As punishment for Disney’s opposition to the controversial law, DeSantis took over the governing district through legislation passed by the Republican-controlled Florida Legislature and appointed a new board of supervisors. Disney sued DeSantis and his appointees, claiming the company’s free speech rights had been violated for speaking out against the legislation. A federal judge dismissed that lawsuit in January, but Disney appealed.
Before it was filled with DeSantis appointees early last year, the board — then made up of Disney supporters — agreed to give Disney control over the design and construction of Disney World. DeSantis’ new appointees claimed the “eleventh-hour agreements” had neutralized their powers, and the district sued the company in state court in Orlando to have the contracts annulled.
Disney has filed counterclaims and asked the state court to declare the agreements valid and enforceable.
Under the settlement, the development agreement and covenants giving Disney design and construction control would be deemed null and void, and the new board agreed to operate under a master plan in place before DeSantis took over the district.
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