July 15th Could Change Disney’s Future — Here’s Why

The political conflict between The Walt Disney Company and the Central Florida Tourism Oversight District (formerly known as the Reedy Creek Improvement District) took another step forward following the CFTOD’s latest court filing.

Cinderella Castle

For context, Disney filed a lawsuit against the Board and Florida Governor Ron DeSantis, at which point the CFTOD Board filed a countersuit on May 1st, 2023. Then, Disney filed a motion asking the judge to dismiss the CFTOD Board’s countersuit, stating it was “moot.” The CFTOD Board filed a response to Disney’s motion to dismiss, hinting at some potential changes they predict to see going forward. Let’s break it down.

The Response

In response to Disney’s motion to dismiss, the CFTOD Board started its argument with a statement reading, “Disney’s motion is classic Imagineering, inviting the Court to make believe that reality is whatever Disney dreams up.”

Magic Kingdom Train Station

From there, the document defends the Board’s original position on the matter in which the Board asserts that the Reedy Creek Improvement District needed to change. The Board’s lawsuit stated, “Within its fiefdom, Disney wrote the laws that governed itself, chose whether and how to enforce those laws against itself, and set its own tax rate. No other Florida business, large or small, enjoyed those benefits.”

Magic Kingdom Entrance

The lawsuit also stated, “There is no question that much good came from the special status that the Florida Legislature granted Disney in 1967. But over time Disney used its influence to obtain what must have seemed like permanent exemptions from the democratic checks and balances that apply to all other Florida businesses.” In the Board’s latest filing, these key points are reiterated, along with some new points in defense of the lawsuit. 

©Central Florida Tourism Oversight Board

The Board’s response reads, “Disney first tells this court that Senate Bill 1604 is a valid law that moots the District’s claims. But to make this argument, Disney must hope that this Court will ignore Disney’s claim in federal court that S.B. 1604 is unconstitutional.”

Disney vs. DeSantis

It goes on to say, “In reality, the district’s suit is a live controversy whose resolution will have an actual effect on Disney’s federal action, because if Disney’s contracts are void, nearly all of Disney’s claims in the federal case disappear.” The main argument of the response rests on a key statement: “This Case is not moot.

©Central Florida Tourism Oversight Board

Further, the argument continues, saying, “The bottom line is that none of the factual or legal premises upon which Disney’s motion rests are true. To sum it up, the Board argues that Disney is incorrect in its belief that the case is moot, and the outcome of the case will have “Actual effects” or “collateral legal consequences” in the federal lawsuit and “any subsequent action Disney may bring for breach of contract.”  

The Potential Outcome

There was a key line in the Board’s response that indicated future actions may be taken in the case. Reading carefully, the Board suggests that Disney may bring forward a breach-of-contract case against the Central Florida Tourism Oversight District. The idea is hinted at in the line that reads, “On top of that, the Court’s ruling will also have real effects in the breach-of-contract action that Disney will surely file against the District.

©Central Florida Tourism Oversight Board

 Could Disney make the case that there was a breach of contract? We’ll have to wait and see. That said, come July 14th, the Court will have a hearing on Disney’s motion to dismiss. If the court sides with Disney, the District’s lawsuit would be dismissed. As a reminder, there are four main points outlined in the lawsuit:

A. Declare that the Development Agreement is void, unenforceable, and/or invalid

B. Declare that the Restrictive Covenants are void, unenforceable, and/or invalid

C. Issue an order enjoining Disney from enforcing the Development Agreement and the Restrictive Covenants

D. Grant such other relief that this Court may deem just and proper.

Click here to learn more about the lawsuit

On the other hand, if the court decides to move forward with the lawsuit, Disney would be open to further litigation on the matter. The court’s ruling may also impact any new court filings going forward, like the breach-of-contract case brought up by the Central Florida Tourism Oversight District.

Reedy Creek Improvement District

We will continue to watch for updates and let you know what we find.


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The post July 15th Could Change Disney’s Future — Here’s Why first appeared on the disney food blog.