Disney has lost a bid to dismiss a lawsuit challenging the validity of a development agreement that transferred the powers of its now-dissolved special district back to the company before Florida Gov. Ron DeSantis assumed control of the board.
In an order issued on Friday, a Florida judge rejected Disney’s arguments that the suit was made moot by a state law and that it shouldn’t be allowed to move forward until another case dealing with the legality of the agreement in federal court is resolved.
“Because this case is not moot and a stay is not proper, the Court hereby denies Disney’s Motion to Dismiss or, in the Alternative, to Stay this Action,” wrote 9th Judicial Circuit judge Margaret Schreiber in an order issued on Friday.
The suit, filed in May in the state court covering Florida’s Orange and Osceola counties by the Central Florida Tourism Oversight District, accused the entertainment giant of covertly cobbling together a “series of eleventh-hour deals” to illicitly retain the powers that allowed it to oversee development around its sprawling theme park. It was filed on the heels of Disney taking DeSantis to court, accusing the Republican governor of retaliating against the company for its public opposition to the so-called “Don’t Say Gay” law.
“Today’s decision has no bearing on our lawsuit in federal court to vindicate Disney’s constitutional rights, and we are fully confident Disney will prevail in both the federal and state cases,” said a Disney spokesperson in a statement.
Arguing for dismissal, Disney claimed that the court doesn’t have the authority to answer whether the agreement that allowed the company to retain its powers is valid. The company pointed to DeSantis signing Senate Bill 1604, which prohibits the board “from complying with the terms” of the contracts.
“This Court accordingly cannot provide meaningful relief to either party: A ruling in CFTOD’s favor would be pointless, and a ruling in Disney’s favor would be meaningless,” wrote Daniel Petrocelli, a lawyer for Disney, in a motion to dismiss. “Under the Florida Constitution, trial courts have no power to issue opinions that are at best advisory and lack any real-world effect on the parties’ rights.”
If the suit isn’t dismissed, Disney moved for the case to be paused until the suit it filed in federal court is resolved. It stressed that it raised constitutional questions that could impact the claims in this case. The entertainment giant is looking for a declaration that the move from DeSantis invalidating the agreement is unlawful.
The CFTOD didn’t respond to a request for comment.