The ongoing political conflict between The Walt Disney Company and the Central Florida Tourism Oversight District (previously known as the Reedy Creek Improvement District) may soon come to a head. Following the latest update in the state case between the CFTOD and Disney, more news may be coming soon.

Walt Disney World

For reference, Central Florida Tourism Oversight District Board’s lawsuit came shortly after Disney filed a lawsuit against the Board and Florida Governor Ron DeSantis. The CFTOD Board filed a countersuit on May 1st, 2023. From there, Disney filed a motion to dismiss the CFTOD Board’s countersuit, stating the suit was “moot.” The CFTOD Board filed a response to Disney’s motion to dismiss, and finally, on July 14th, the judge heard arguments in the district’s lawsuit against Disney. Here’s what happens next. 

The Arguments

Before we cover the judge’s ruling, let’s review the arguments from both sides. After Disney filed its motion to dismiss the state lawsuit, the CFTOD Board stated, “Disney’s motion is classic Imagineering, inviting the Court to make believe that reality is whatever Disney dreams up.” The response went on to argue that the Board’s original position on the matter is not, in fact, “moot.” 

Magic Kingdom

To further illustrate the district’s argument, the Board’s original lawsuit stated, “Within its fiefdom, Disney wrote the laws that governed itself, chose whether and how to enforce those laws against itself, and set its own tax rate. No other Florida business, large or small, enjoyed those benefits.” Here, the Board is referencing the old Reedy Creek Improvement District, which was essentially set up — and run — by Disney. 

Reedy Creek Improvement District

The Board’s lawsuit further stated, “There is no question that much good came from the special status that the Florida Legislature granted Disney in 1967. But 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.” This is essentially the crux of the district’s argument. 

Disney vs. DeSantis

Disney, on the other hand, argues that the state court lawsuit is irrelevant. Disney’s argument stems from the Board’s earlier actions; when the Board declared Disney’s agreements with the Reedy Creek board to be invalid, the Governor signed a bill attempting to void Disney’s old contracts by prohibiting the Board from complying with the terms of those contracts.

Reedy Creek Building

Disney argued, “That legislation renders Plaintiff’s complaint moot because it makes any order this Court could issue — in either party’s favor — legally irrelevant.” Basically, Disney asserts that if the court decides that the Board is wrong and the contracts complied with state law, the Board would still not be able to enforce them due to Florida law. If the Court finds that the Board is right and the contracts are invalid, it wouldn’t matter anyway because the new state law has already made them void.

Click here to read more about Disney’s response to the lawsuit

The Outcome

Now that we’ve covered the overarching arguments, that brings us back to July 14th. The state court granted a hearing after Disney filed a motion to dismiss the CFTOD lawsuit (or at least put it on hold) and scheduled the hearing for July 14th. According to local news affiliate Spectrum News, Orange County Circuit Judge Margaret Schreiber listened to arguments from both sides but ultimately did not make a decision. Instead, the judge asked both sides to submit proposed orders in their favor by July 19th. A ruling is expected to come soon.

©Spectrum News 13

Basically, this means the case is still ongoing, with no real update for now. Keep in mind that if the court sides with Disney, the District’s lawsuit would be dismissed. As a reminder, there are four main points outlined in the state lawsuit:

Click here to learn more about the lawsuit

If the court decides to move forward with the lawsuit, Disney would be open to further litigation on the matter. We will continue to watch for updates and let you know what we find.