ORLANDO, Fla. – Disney has been granted a two-month pause in a federal lawsuit against Florida Governor Ron DeSantis and his appointees to Walt Disney World’s governing district. The decision follows a settlement reached by the two parties in separate state court litigation. Disney had filed a request to the federal appellate court last week, citing a settlement agreement between the company and the DeSantis-appointed Central Florida Tourism Oversight District. The lawsuit had emerged after a dispute over the future development of Disney World sparked disagreement between the company and the district.
As part of the settlement, Disney has agreed to put the federal lawsuit on hold while negotiations take place regarding a new development agreement with DeSantis’ appointees. The district, which provides essential services such as firefighting and planning, had been under the control of Disney supporters until DeSantis’ appointees assumed control last year. Disney was facing a deadline next week to file an opening brief in its appeal to the federal Eleventh Circuit Court of Appeals, but the deadline has now been extended to mid-June.
The settlement brings an end to almost two years of litigation that was triggered by DeSantis’ takeover of the district from Disney supporters. The move came after Disney expressed opposition to a controversial law known as the “Don’t Say Gay” law, which banned classroom lessons on sexual orientation and gender identity in early grades. DeSantis, a Republican, championed the law and targeted Disney in his presidential campaign speeches earlier this year. However, he has since dropped out of the race.
In response to Disney’s opposition to the law, DeSantis took control of the district through legislation passed by the Republican-controlled Florida Legislature and appointed a new board of supervisors. Disney filed a lawsuit against DeSantis and his appointees, claiming that the company’s free speech rights had been violated for speaking out against the legislation. Although a federal judge dismissed the lawsuit in January, Disney chose to appeal the decision.
Prior to the appointment of DeSantis’ board, the governing district, which was primarily composed of Disney supporters, had agreed to grant Disney control over the design and construction of Disney World. DeSantis’ appointees contested these agreements, claiming that they had been undermined by last-minute deals. The district subsequently sued Disney in state court to have the contracts declared void. In response, Disney filed counterclaims and sought validation and enforceability of the agreements.
Under the terms of the settlement, the development agreement and covenants granting Disney control over design and construction will be declared null and void. The new board has agreed to operate under a master plan that was in effect before DeSantis assumed control of the district.
The pause in the federal lawsuit signifies a temporary halt in the legal battle between Disney and the DeSantis-appointed governing district. Both parties will now engage in negotiations to establish a new development agreement for Disney World.