Disney Steps Up Fight Against DeSantis In Legal Battle, Shows No Signs Of Backing Down

Walt Disney World's special tax district is at the heart of a fresh legal skirmish. Entertainment giant Walt Disney Co DIS is now taking legal steps, claiming a breach of contracts by a board of supervisors under Florida Governor Ron DeSantis's purview.

Disney has lodged counterclaims, pushing back against the board's lawsuit that alleges the company lacked authority when it entered into development contracts, according to a CNBC report. 

Disney's comprehensive 55-page response not only challenges the board's claims but also presents a dozen defenses to refute them.

While Disney asserts the contracts were designed to shield its Florida-based ventures from the state government's "escalating retaliation," the board contends that Disney covertly modified the contracts to undermine its power. The divergence in views led the board to invalidate the contracts, prompting Disney's legal action.

The roots of the disagreement between the two parties can be traced back to DeSantis' decision to target the tax district, historically known as the Reedy Creek Improvement District.

Also Read: Disney Is Seriously Unpopular With GOP Primary Voters In Key States, And That Could Help Ron DeSantis, Polling Suggests

The creation of the district has given Walt Disney World a significant degree of operational freedom since the 1960s. However, under DeSantis' leadership, the area was renamed the Central Florida Tourism Oversight District, with the governor placing his chosen members at its helm.

In addition to the counterclaims, Disney filed a related federal lawsuit against DeSantis and his board members, accusing the governor of retaliating after Disney had voiced its opposition to the controversial "Don't Say Gay" legislation.

Amid the drama, DeSantis, who is currently trailing former President Donald Trump in the GOP presidential primary, recently expressed a desire for a resolution.

Speaking with CNBC, DeSantis encouraged Disney CEO Bob Iger to reconsider the lawsuit, suggesting that Disney's position was untenable.

The governor further added that he and his team had "essentially moved forward."

Throughout his campaign trail, DeSantis has been vocal about his differences with Disney, accusing it of endorsing "progressive" ideologies. In response, Bob Iger has dismissed the governor's claims against the company, labeling them "baseless."

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Now Read: Ron DeSantis Wants Disney's Bob Iger To 'Drop The Lawsuit' And Move Forward

Photo: Shutterstock