Lawsuit Settlement Reached Between Gov. DeSantis’ Allies and Disney

Allies of Gov. Ron DeSantis and Disney settled Wednesday in a dispute in state court over how Walt Disney World will evolve in the long run following the Florida governor’s takeover of the theme park.

At a meeting, members of the Central Florida Tourism Oversight District’s board of trustees approved the settlement, ending nearly two years of litigation initiated over DeSantis’ purchase of the district from Disney supporters following the company’s opposition to the so-called “Don’t Say Gay. “

The 2022 law bans in-class categories on sexual orientation and gender identity in the early grades and has been championed by the Republican governor, who used Disney as a punching bag in his speeches until he suspended his presidential campaign this year.

The district provides municipal services such as firefighting, planning and mosquito control, among others, and has been controlled by Disney supporters for up to five decades.

Jeff Vahle, president of Walt Disney World Resort, said Wednesday that the company is glad a deal has been reached.

“This agreement opens a new stage of constructive engagement with the district’s new leadership and serves the interests of all parties by enabling continued investment and the creation of thousands of direct and indirect jobs and economic opportunities in the state,” Vahle said.

As punishment for Disney’s opposition to the law, DeSantis took back the administrative district through a law passed by the Republican-controlled Florida Legislature and appointed a new board of supervisors. Disney sued DeSantis and his appointees, alleging that the company’s flexible speech rights were violated by openly speaking out against the law. A federal judgment dismissed the lawsuit in January.

Before the district transitioned from Disney allies to DeSantis appointees early last year, Disney supporters on its board signed agreements with Disney to move the design and structure of Disney World to the company. DeSantis’ new appointees claimed that “last-minute deals” neutralized their powers and the district sued the company in Orlando state court to void the contracts.

Disney has filed counterclaims, asking the state court to reclaim the valid and enforceable agreements.

Under Wednesday’s settlement, Disney leaves in place a ruling by the board of trustees of DeSantis’ appointees that the overall plan approved by Disney supporters prior to the acquisition is null and void. Disney also says that a progression agreement and covenants entered into before the outright purchase is also invalid, under the terms of the agreement.

Instead, an overall plan that will begin in 2020 will be used, and the new board will make adjustments to it, and the agreement suggests that Disney and the new board will negotiate a new progression deal in the near future.

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