Judge DENIES Disney’s Request to Toss Out Reedy Creek Lawsuit

If you’ve been following the political conflict between Disney and the Central Florida Tourism Oversight District, you may know that there are two ongoing lawsuits between these parties: one, a federal lawsuit filed by Disney, and the other, a state lawsuit filed by the Central Florida Tourism Oversight District.

Magic Kingdom

In an attempt to toss out the Central Florida Tourism Oversight District’s state court lawsuit, Disney filed a motion to dismiss in which Disney argued that the lawsuit was “moot.” Now, we’ve got an important update on the case against Disney.

Background

The Central Florida Tourism Oversight District (CFTOD) is the Board that replaced Disney World’s Reedy Creek Improvement District. The new Board of Supervisors (appointed by Florida Governor DeSantis) has already made quite a few changes within the District. Note that Walt Disney World is located within the District as well.

©Central Florida Tourism Oversight Board

The Board is also responsible for the state lawsuit  against Disney, which was filed after Martin Garcia, Chairman of the Board, said during a CFTOD meeting, “Since Disney sued us, we ha[ve] no choice but to respond.”

©Central Florida Tourism Oversight Board

The Board alleges a few things in its lawsuit:

  • They claim Disney had a “fiefdom” under the old Reedy Creek setup where it “wrote the laws that governed itself, chose whether and how to enforce those laws against itself, and set its own tax rate.”
  • They claim that “No other Florida business, large or small, enjoyed those benefits.”
  • The board acknowledges that “much good came from the special status that the Florida Legislature granted Disney in 1967.”
  • But, they allege that things have changed, and “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.”

Click here to learn more about the ongoing lawsuits

Update

On July 28th, a judge denied Disney’s motion to dismiss the Central Florida Tourism Oversign District lawsuit, per local Orlando news affiliate WESH News. This update comes two weeks after Disney made its argument in circuit court in Orange County.  

Reedy Creek Building

The judge ruled that the suit has merit and denied Disney’s motion to dismiss or put the lawsuit on hold. Disney has 20 days to respond to the lawsuit, according to Reuters. Note that this does not necessarily mean that the CFTOD has won the lawsuit, but rather, it just means the case is still alive. 

Reedy Creek Improvement District

If the judge ultimately sides with the CFTOD, all property development agreements between Disney and the Reedy Creek Improvement District could be eliminated.

The Main Street Train Station at Disney World

Don’t forget that the separate lawsuit filed by Disney against Governor Ron DeSantis and the Tourism Oversight District Board is still pending.

If you want to read more about the Disney vs. DeSantis situation, see our posts below.

We’ll continue to keep a close on the situation and bring you updates that involve The Walt Disney Company.

 Disney Insists DeSantis Lawsuit Should Happen Before 2024 Election

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2 Replies to “Judge DENIES Disney’s Request to Toss Out Reedy Creek Lawsuit”

  1. Disney management is burning through money with bad decisions on un-entertaining media products, inadequate consumer relations and a general lack of regard for what customers want and are willing to pay for. Now Disney management has picked an expensive fight with the government by publicly threatening to use mega-corporation resources to try and override our democratically elected government. Is it really any wonder that Disney is in some of the worst financial and legal shape in recent memory? Has it been worth it to jeopardize Walt’s vision and dreams for social politics that have nothing to do with the company’s basic business?

    1. You are correct. I could not have said it better myself. Disney just does not seem to understand this and they keep making the same mistakes. Disney picked this fight over a lie and will not back down.