Why Disney World Will Be Paying For A Lawsuit Against Itself In Ongoing Florida Battle

[Taylor Swift]

The next step in Disney World's fight with Florida has happened, and it's all going to be very expensive for Disney.

 

 

 

 

 

Ever since Walt Disney wanted to build his own city and started buying up swampland in Florida, the relationship between his company and the state has been one of mutual benefit. However, in recent months the relationship between the two has soured significantly. A battle that began with the Walt Disney Company speaking out against a Florida law culminated last week with Disney filing a lawsuit against the governor of the state as well as several other involved parties. And now the district that oversees Walt Disney World has announced it will countersue Disney, meaning Disney will be exclusively finding the lawsuit against itself. 

When Florida voted to create the Reedy Creek Improvement District in 1967, its borders perfectly matched the land owned by the Walt Disney Company that was designated for the creation of Walt Disney World. As such the district was funded by taxing the residents within its borders, which is to say, Disney World. While the resort and the district were technically separate entities, they worked in concert with each other to be sure, but now that has changed and the two are in a battle against each other. 

Why Disney World Will Be Paying For Both Sides Of The Lawsuit

A new Florida law transformed the Reedy Creek Improvement District into the Central Florida Tourism Oversight District, and it created a new board made up of individuals handpicked by Governor Ron DeSantis. The new board has recently taken steps to undo a land deal made between Disney and the previous board, resulting in Walt Disney World suing the state for the entire situation, claiming the company is being punished for speaking out against state law, a violation of First Amendment protections.

This morning, during a special meeting of the CFTOD (via Laughing Place), the board voted to countersue the Walt Disney Company. However, since all the money the board has comes from taxes paid by Walt Disney World, the resort is functionally paying for both sides of these lawsuits. The board has also indicated that it may raise taxes on the district, and therefore on Disney, in order to pay for the lawyers that will be fighting the suit.

The fact that Disney will basically be paying for both sides in this ongoing legal battle will certainly make this an expensive fight, but clearly, that fact was taken into account when the decision to file the lawsuit was made. For more than 50 years Walt Disney World has, to be sure, had a great deal of autonomy when it came to what happened inside the resort, but the special district also meant that Disney was largely responsible for dealing with many of its own municipal needs.

Why Disney And Florida Are Suing Each Other

All this began last year when Florida passed a law that many referred to as “Don’t Say Gay.” Disney, being the state’s largest single-site employer, was encouraged by fans and Cast Members alike to speak out against the law, which the company, at the time under CEO Bob Chapek, eventually did. However, the plans to dissolve Reedy Creek in response to the public statement began almost immediately.

The laws that Florida has passed, while they don't specify Disney by name, have been written in such a way as to only apply to the former Reedy Creek Improvement District. New rules regarding the inspection of attractions, which large theme parks have previously been exempt from in the state, only apply to Walt Disney World, and not Universal Orlando Resort or SeaWorld. Florida has many special districts similar to this one, but none have seen the changes in operation beyond this one.

Since then current Disney CEO Bob Iger has spoken publicly about the Florida fight, stating that while Disney plans to continue to invest in Florida, he found the governor’s actions against the company to be anti-business and anti-Florida. This all certainly seemed destined for a courtroom and now, unless something unexpected happens, that’s where it will go.