Judge Dismisses The Walt Disney Company’s Lawsuit Against The State Of Florida And Governor Ron DeSantis, Says “Disney Lacks Standing”

January 31, 2024  ·
  John F. Trent

Florida Governor Ron DeSantis giving the annual State of the State speech. Photo Credit: Office of the Governor of Florida, Public domain, via Wikimedia Commons

United States District Judge Allen Winsor dismissed The Walt Disney Company’s lawsuit against Florida Governor Ron DeSantis and the State of Florida.

Cinderalla’s Castle in Walt Disney World via 4k WDW YouTube

The Walt Disney Company sued Florida Governor Ron DeSantis, the State of Florida, and other Florida government officials in a 77-page document back in April 2023.

The lawsuit alleged that the State of Florida’s decision to dissolve the Reedy Creek Improvement District violated the Contracts Clause of the United States Constitution, violated the Takings Clause of the Fifth Amendment to the U.S. Constitution, violated the Fourteenth Amendment’s Due Process Clause, and violated the company’s First Amendment political speech.

Walt Disney World sign via Orlando Streets YouTube

READ: A Glossary And Guide To The Flurry Of Disney News Involving Bob Iger, Nelson Peltz, The Reedy Creek Improvement District, And More

The Walt Disney Company CEO Bob Iger attempted to justify the lawsuit by positioning the company as a victim. During the company’s Q2 2023 Earnings Results webcast he said, “First of all, I think the case that we filed last month made our position and the facts very clear. And that’s really that this is about one thing and one thing only, and that’s retaliating against us for taking a position about pending legislation. And we believe that in us taking that position we are merely exercising our right to free speech.”

“Also, this is not about special privileges, or a level playing field, or Disney in any way using it’s leverage around the state of Florida, but since there’s been a lot said about special districts and the arrangement that we had I want to set the record straight on that too,” Iger said.

Bob Iger via New York Times Events YouTube

He continued, “There are about 2,000 special districts in Florida and most were established to foster investment and development, and we were one of them. It basically made it easier for us and others, by the way, to do business in Florida. And we built a business that employs, as we’ve said before, over 75,000 people and attracts tens of millions of people to the state.

“So while it’s easy to say that the Reedy Creek Special District that was established for us over 50 years ago benefited us, it’s misleading to not also consider how much Disney benefited the state of Florida,” Iger stated.

Florida Governor Ron DeSantis speaking with attendees at the Republican Jewish Coalition’s 2023 Annual Leadership Summit at the Venetian Convention & Expo Center in Las Vegas, Nevada. Photo Credit: Gage Skidmore from Surprise, AZ, United States of America, CC BY-SA 2.0 <https://creativecommons.org/licenses/by-sa/2.0>, via Wikimedia Commons

“And also, we’re not the only company operating a special district,” he stated. “I mentioned 2,000. The Daytona Speedway has one. The Villages, which is a prominent retirement community, and there are countless others. So if the goal here is leveling the playing field then a uniform application of the law or government oversight of special districts needs to occur or be applied to all special districts.”

“There’s also a false narrative that we’ve been fighting to protect tax breaks as part of this,” Iger continued. “But in fact we’re the largest tax payer in central Florida paying over $1.1 billion in state and local taxes last year alone. And we pay more taxes, specifically more real estate taxes, as a result of that special district.”

“And we all know there was no concerted effort to do anything to dismantle what was once called Reedy Creek Special District until we spoke out on the legislation,” the CEO noted. “So this is plainly a matter of retaliation while the rest of the Florida special districts continue operating, basically, as they were.”

Bob Iger attend the Guardians of the Galaxy Vol. 3 Premiere at the Dolby Theatre in Hollywood CA on Thursday, April 27, 2023.
(Photo: Alex J. Berliner/ABImages)

READ: Nelson Peltz Blasts Bob Iger And The Walt Disney Company In New Proxy Statement Ahead Of 2024 Annual Meeting

“I think it is also important for us to say that our primary goal has always been to continue to do exactly what we’ve been doing there, which is investing in Florida. We’re proud of the tourism industry that we created. And we want to continue to deliver the best possible experience for guests going forward,” Iger continued.

“We never wanted and we certainly never expected to be in the position to defend our business interests in federal court, particularly after having such a terrific relationship with the state as we’ve had for more than 50 years,” he said.

LOS ANGELES, CALIFORNIA – FEBRUARY 28: (L-R) The Walt Disney Company CEO Bob Iger, Showrunner/Executive Producer Jon Favreau, Pedro Pascal and Alan Bergman, Chairman of Disney Studios Content attends the Mandalorian special launch event at El Capitan Theatre in Hollywood, California on February 28, 2023. (Photo by Alberto E. Rodriguez/Getty Images for Disney)

In a 17-page document granting the motion to dismiss, Judge Allen Winsor wrote, “The clerk will enter a judgment that says, ‘This case was resolved on motions to dismiss. Plaintiff’s claims against the Governor and the Department Secretary are dismissed without prejudice for lack of subject matter jurisdiction. Plaintiff’s claims against the Central Florida Tourism Oversight District board members are dismissed on the merits for failure to state a claim.”

Judge Winsor specifically addressed the First Amendment claim writing, “‘As a general matter, the First Amendment prohibits government officials from subjecting individuals to retaliatory actions after the fact for having engaged in protected speech.’ But it is settled law that ‘when a statute is facially constitutional, a plaintiff cannot bring a free-speech challenge by claiming that the lawmakers who passed it acted with a constitutionally permissible purpose.’ The Eleventh Circuit has ‘held that many times.’ And this settled law forecloses Disney’s claim.”

He also noted, “In short, Disney lacks standing to sue the Governor or the Secretary, and its claims against the CFTOD Defendants fail on the merits because ‘when a statute is facially constitutional, a plaintiff cannot bring a free-speech challenge by claiming that the lawmakers who passed it acted with a constitutionally impermissible purpose.”

Mickey walks down Main Street USA at Disneyland. (Credit: Mortimer Productions)

Legal analyst Andrew Esquire predicted dismissal was highly likely in an interview on the WDW Pro channel back at the end of June 2023.

He said at the time, “For Disney, the nightmare scenario, the worst possible scenario, which is a likely scenario, I don’t want to give exact probabilities, but it’s something that could very much probabilistically happen is the federal case gets entirely dismissed. It gets entirely thrown out. There’s multiple reasons. The reason cited, one of the main reasons which I have said from the beginning on this which is Disney does not truly have standing. They do not meet the elements for standing. Standing means the ability to bring a claim to court.”

“This is exactly the reason that the citizens who actually sued the state of Florida for these legislative changes way back earlier this year, they were thrown out for standing. Disney also can be thrown out for much similar grounds,” he explained.

“So they’re very likely to be tossed out if not entirely almost all of the counts,” he shared. “So perhaps four of the counts might get tossed. You might have one remaining count there in federal court.”

Florida Gov. Ron DeSantis (R) speaks during a convocation at Liberty University’s Vines Center in Lynchburg, Va., on Friday, April 14, 2023. Photo Credit: Tom Williams, Public domain, via Wikimedia Commons

What do you make of Judge Winsor dismissing Disney’s lawsuit against Governor Ron DeSantis and the State of Florida?

NEXT: How Corrupt Bonds Shake And Stir The Walt Disney Company And The Former Reedy Creek Improvement District

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Kae
Kae
3 months ago

Disney lacks standing in more ways than one. Anyway, great news.

Frederick Lawson
Frederick Lawson
3 months ago

Listen to your new captain America who should just be the Falcon and do better Disney. I can help with that if you want an honest and fresh start.

TimP
TimP
3 months ago

“dismissed on the merits for failure to state a claim.”

Disney was hoping the claim is getting legislation overturned, but that is not allowed. It makes no sense to sue. It’s a frivolous lawsuit.

Tony
Tony
3 months ago

Ron DeSantis is my choice for president in 2028. After, hopefully Donald Trump gets his second term in 2024(I can’t stand Joe Biden).

lawlerskates
lawlerskates
3 months ago

Getting your special privileges (that you thoroughly abused) taken away is not discrimination, Disney dumbasses.

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