ORLANDO, Fla. (CN) — The Walt Disney Company and an oversight board appointed by Florida Governor Ron DeSantis agreed to settle competing lawsuits on Wednesday, potentially ending a two-year-long feud between state officials and the entertainment giant that began with the state’s passage of the so-called “Don’t Say Gay” law.
In a closed-door session, the Central Florida Tourism Oversight District unanimously voted to accept the settlement, which dismisses two lawsuits disputing a series of development agreements passed by the previous, Disney-backed board. Those development agreements are now null and void, according to the settlement.
The Mouse also agreed to drop its public records lawsuit filed in December that accused board members of avoiding record requests and depositions involving the ongoing litigation.
In addition, Disney will ask permission from the Eleventh Circuit Court of Appeals to pause its appeal of a dismissed federal lawsuit pending future negotiations with the oversight board for a new development agreement encompassing the theme park’s 25,000-acre property.
“I’m very pleased with the agreement,” said board chair Charbel Barakat. “I think with this settlement, we are eager to work with Disney to make this country’s tourist destination famous for a second reason: good governance.”
Jeff Vahle, president of Walt Disney World, said the company was pleased to end the litigation.
“This agreement opens a new chapter of constructive engagement with the new leadership of the district and serves the interests of all parties by enabling significant continued investment and the creation of thousands of direct and indirect jobs and economic opportunity in the State," Vahle said in a statement.
The quarrel between Disney and the state stems from the corporation’s opposition to the Florida's Parental Rights in Education law, known more commonly as the Don’t Say Gay law, which bans the teaching of sexual orientation and gender identity topics from kindergarten through third grade.
Disney heavily criticized the bill, which DeSantis signed into law in March 2022, and vowed to end any political contributions to state lawmakers.
The governor attacked Disney as a “woke corporation” and directed the GOP-controlled Florida Legislature to remove the company's self-governing status that was in place for more than 50 years.
The former Reedy Creek Improvement District reacted by quietly passing a series of development agreements that effectively neutered the new board from making any major decisions affecting the theme park.
DeSantis answered with a series of proposals to wrest control of the district from Disney, including placing tolls on roads within the district in addition to new taxes and state inspections of the theme park’s monorail. At one point, noting that the state has several miles of undeveloped land adjacent to the theme park, the governor bounced around the idea of building a prison abutting the district.
Disney responded in turn with a federal lawsuit accusing DeSantis and the board members of a “targeted campaign of government retaliation — orchestrated at every step by Governor DeSantis as punishment for Disney’s protected speech.”
Then, the new Central Florida Tourism Oversight District filed its own lawsuit in state court to nullify the previous board’s development agreements. Disney countersued.
In December, Disney filed yet another lawsuit, this one claiming the board allowed the use of personal devices for official business and failed to preserve those communications for later review. The complaint also said Disney paid more than $2,400 in processing fees for public record requests asking for all mentions of “Disney” and “Mouse.”
Disney’s legal strategy took a hit in January when a federal judge dismissed its retaliation case. The company quickly appealed to the 11th Circuit Court of Appeals.
The fight between Disney and the state has led to a series of headaches for DeSantis and the district board members.
During his failed bid for the GOP presidential nomination, DeSantis’ rivals attacked him as “anti-business.”
Three of the governor’s appointees abruptly resigned since the new oversight board was established. The first appointed administrator of the district, Glen Gilzean, was forced to resign from his role as chairman of the state’s ethics commission, since Florida law does not allow public employees to serve on the commission, according to a legal opinion from the commission’s lawyer. Gilzean then resigned from the oversight board earlier this year.
In addition, dozens of employees left the district since the new board took over, citing a lack of morale and a politically charged atmosphere.
At a press conference on Wednesday, DeSantis praised the settlement.
“We’ve always acted in these Disney issues — parent’s rights in education, replacing Reedy Creek and making sure that was a state-controlled board, nullifying these covenants passed at the eleventh hour — everything has been in the best interests of the state of Florida. And we’ve been vindicated on all those actions.”
“A year ago, people were trying to act like all these legal maneuverings were going to succeed against the state of Florida,” DeSantis continued. “And the reality is, here we are a year later and not one of them has succeeded. Every action we’ve taken has been upheld in full and the state’s better off for that.”
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