United States District Judge Allen Winsor dismissed The Walt Disney Company’s lawsuit against Florida Governor Ron DeSantis and the State of Florida.
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.
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.
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.
“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.”
“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.
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.”
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.”
What do you make of Judge Winsor dismissing Disney’s lawsuit against Governor Ron DeSantis and the State of Florida?
Disney lacks standing in more ways than one. Anyway, great news.
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.
“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.
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).
Getting your special privileges (that you thoroughly abused) taken away is not discrimination, Disney dumbasses.