- The DeSantis-appointed board that oversees Disney's district has sued the company.
- The move comes after Disney filed a lawsuit in federal court in Tallahassee.
A district board appointed by Florida Gov. Ron DeSantis countersued Walt Disney World on Monday in state court, escalating a bitter feud over control.
The 188-page lawsuit asks the 9th Judicial Circuit in Central Florida to render "void and unenforceable" the loophole Disney created to maintain control of its land, calling it "riddled with procedural and substantive defects."
The lawsuit specifically targets an arrangement Disney set up with the former board on February 8, in which the company invoked an obscure property law about King Charles III. The agreement essentially would have given Disney control of its land virtually in perpetuity.
The counter-lawsuit comes after Disney sued the governor and the board in federal court last week, alleging that DeSantis and his office have engaged in "a targeted campaign of government retaliation" against Disney that was "orchestrated at every step by Governor DeSantis as punishment for Disney's protected speech."
"We have no choice now but to respond," Martin Garcia, chairman of the board for the Central Florida Tourism Oversight District, said of the motion to file a lawsuit that he put forward during an emergency board meeting on Monday. "We will seek justice in state court here in central Florida where both it and Disney do business. Yes, we'll seek justice in our own backyard." All five board members supported the motion to file a lawsuit.
The choice by the board to file the lawsuit in in the 9th Circuit in central Flordia stands in contrast to where Disney's decision to file its own lawsuit in the US District Court for the Northern District of Florida in Tallahassee. That case was assigned to Judge Mark Walker, an appointee of President Barack Obama who previously blocked a DeSantis-backed law that restricted how workplaces instituted diversity, equity, and inclusion training.
In an interview with the British newspaper The Telegraph, DeSantis accused Disney of "forum shopping" for a judge "who rules against us all the time." DeSantis is widely expected to launch a presidential campaign in May or June, and the feud with one of the world's biggest entertainment brands will likely feature heavily in the race.
The board overseeing Disney's district has met four times, and hired attorneys and financial advisors as they consider changes to Disney's special self-governing privileges in Florida. They also started a search for an urban planner and an economic consultant, among other measures.
On Monday, Garcia expressed frustration about Disney's escalation of the fight.
"In essence, Disney is asking a federal court in Tallahassee to wrestle back the hands of time to 1967, while this board is instead charged legislatively with bringing the district into the 21st century with new and better policies and practices," Garcia said.
Disney, currently facing a wave of layoffs, mounted a lawsuit after DeSantis threatened changes to Disney's special tax district, with help from the Florida legislature and the board he appointed to oversee the district. He even floated the idea of building a state prison on the 40 square miles of land that borders the resort and theme park.
Under a decadeslong arrangement with the state, Disney doesn't have to run its plans by zoning commissions or building inspection departments. Last week, DeSantis' newly appointed board said "nothing is off the table" as it took on a major overhaul of the area. In the mix were higher taxes, more regulations, building workforce affordable housing, and exploring the sale of utilities the district owns.
DeSantis was outside the country when Disney filed its lawsuit. Speaking in Jerusalem last week, the governor called Disney's lawsuit "political."
Asked about the board's lawsuit during an unrelated press conference on Monday, the governor said it was "wrong for one corporation to basically corrupt the local government, run it as their own fiefdom, be exempt from laws, and have all kinds of benefits nobody else has."
He maintained that he was clear about his intentions regarding Disney when he ran for reelection in November and accused the company of trying to "veto" the will of voters.
Disney did not immediately respond to a request for comment from Insider.
No end in sight over land control
The governor has sparred with Disney since its executives publicly pledged to work to repeal a DeSantis-backed school-curriculum law that Democrats and Disney termed "Don't Say Gay."
The law initially at the center of the dispute, officially called the Parental Rights in Education Act, banned classroom instruction about gender identity and sexual orientation for up to third grade. Last month, the DeSantis administration expanded it to 12th grade, limiting discussions to sex-education classes or those "required by existing state standards."
In addition to the lawsuit, the Florida legislature plans to double down to try to nix Disney's agreement, and DeSantis said Monday that he'd sign the bill into law.
The ongoing battle has been heavily fraught at the board meetings, where members of the community and local businesses have been invited to speak. Before the lawsuit announcement on Monday, the board kicked off its meeting with a public comment period in which the lone speaker, Douglas Dixon, expressed dismay about the new leadership.
"I really hope that you just resign or actually do your job, which is to do what's in the best interest of your district, not in the best interest of the governor," Dixon, who has a Disney timeshare, said. "I was for DeSantis until he started this stupid war and is destroying us."
DeSantis appointed the board in February, and it included political allies who have insisted at meetings that they weren't seeking a political agenda. Board member Ron Peri, an Orlando-based former pastor and the CEO of The Gathering, a Christian ministry, urged attendees at Monday's meeting to give the new board a chance.
"I have loved Disney World," Peri said. "My kids have enjoyed it. The Magic Kingdom, it's wonderful. I think there are so many positives. It's my hope — and I know it's the hope of the board — that the actions we take will wind up being better for everyone, Disney included."
May 1, 2023: This story has been updated to include a copy of the lawsuit and its details.