Home » US business news » Disney Settles Lawsuit Over Special Tourism District
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Disney has settled a lawsuit over control of a special tourism district in Florida.
This agreement is with the Central Florida Tourism Oversight District (CFTOD) and effectively closes a chapter of legal conflict.
It marks the end of more than 50 years of Disney's dominance in the area.
This was challenged last year when Governor Ron DeSantis took steps to end Disney's control.
The settlement clears a path for future development at Walt Disney World in Orlando.
It also hints at resolving a related federal lawsuit.
The dispute began when the CFTOD looked to invalidate contracts signed by Disney with the previous board of the Reedy Creek Improvement District.
However, this was before it was disbanded on DeSantis' orders.
This move came after the company criticized Florida's controversial "Don't Say Gay" bill, which DeSantis supported.
In response, Disney sought court validation for the agreements, which favored the company.
Under the settlement, Disney will not contest the CFTOD's decision to declare previous agreements with the old district null and void.
The entertainment giant also agreed to request a pause on its ongoing federal lawsuit against DeSantis.
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This depends on negotiations for a new development agreement with the district.
The move suggests Disney might withdraw its federal complaint against DeSantis if negotiations are successful.
The CFTOD board met in private to discuss the settlement details.
Walt Disney World President Jeff Vahle welcomed the agreement.
He said: “We are pleased to put an end to all litigation pending in state court in Florida between Disney and the Central Florida Tourism Oversight District.
“This agreement opens a new chapter of constructive engagement with the new leadership of the district and serves the interests of all parties by enabling significant continued investment and the creation of thousands of direct and indirect jobs and economic opportunity in the State.”
Earlier, a federal judge dismissed Disney's lawsuit against DeSantis.
The company alleged retaliation for opposing the "Don't Say Gay" law, which restricts classroom discussions on sexual orientation and gender identity.
The judge ruled Disney did not have the legal standing for the claim.
Disney had appealed the dismissal.
However, the recent agreement includes provisions for pausing this federal appeal during negotiations with the CFTOD.
