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Court refuses to dismiss lawsuit against Disney by DeSantis-appointed board

First big legal victory for CFTOD against Disney

Michael Sasso (seated, second from right) as pictured in March, 2023, while vice chair of the Central Florida Tourism Oversight District board. (WKMG News 6)

ORLANDO, Fla. – A Florida court refused Friday to dismiss a lawsuit against the Walt Disney Company brought by the board appointed by Gov. DeSantis to oversee Walt Disney World property.

The Central Florida Tourism Oversight District is suing Disney over the deal the company made with the former Reedy Creek Improvement District before it was dissolved by the state legislature, which transferred much of the authority over the property to Disney.

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Disney says the CFTOD’s lawsuit is moot because the Florida Legislature passed a law (SB 1604) that nullified that deal.

Disney also wanted the lawsuit put on hold because it is suing DeSantis and the board in federal court over the state’s actions against Disney, including the dissolution of the RCID and SB 1604. Disney says that federal case should be settled first.

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The judge in the case, however, says the federal court case does not get precedent over the state court case, and the outcome of the state case has legal significance and could be in the public interest.

“The validity of these Agreements is clearly a question of great public importance,” Circuit Judge Margaret Schreiber wrote in her ruling. “They contradict the Legislature’s policies toward the District and, if valid, would permit Disney to control all development rights and land use regulations in one of the most heavily visited areas in Central Florida. These issues implicate matters of the State’s sovereignty and are of great interest to its economy and citizenry.”

It’s the first big legal victory the CFTOD has had in its ongoing legal fight with Disney.

The Florida Legislature dissolved the Reedy Creek Improvement District, a taxing district that handled government matters for Disney property, including permits, infrastructure, the electric grid, and first responders in the wake of criticism by Disney’s former CEO about the state’s Parental Rights in Education law, known by critics as “Don’t Say Gay.”

The legislature created the Central Florida Tourism Oversight District in its place, giving the governor the power to appoint the board overseeing the district.

Disney is suing DeSantis and the CFTOD, saying the dissolution and subsequent actions violated Disney’s constitutional rights.

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