Disney’s battles regarding the Reedy Creek Improvement District (now called the Central Florida Tourism Oversight District) are far from over.

Lately, we’ve seen the Board of Supervisors for the District criticized for their removal of Disney Annual Pass benefits, important changes proposed for the District, and a countersuit filed by Disney against the DeSantis-appointed District board. But now we’ve got more updates.

Motion to Dismiss

Let’s start with the main update — this one has to do with the state court lawsuit that has been filed by the DeSantis-appointed Board of Supervisors of the District against Disney.

In this lawsuit, the Board is essentially requesting that the Court declare that certain agreements Disney entered into with the prior Board of Supervisors (which this new Board claims strip them of their power) are invalid.

Disney was ultimately required to file an answer to the Complaint in this lawsuit (after Disney’s motion to dismiss the entire case was denied) and in their answer, Disney filed some counterclaims against the Board. Basically, Disney has fought back against this lawsuit in a way by bringing their own claims against the Board, accusing the Board of wrongdoing.

Disney has alleged that the new Board has breached Disney’s contracts with the prior Board by refusing to comply with them. Disney has asked the Court to declare that the contracts are valid and enforceable, direct the District to comply with them, and stop the District from violating the terms of the Development Agreement.

Disney also alleged that in refusing to comply with the Contracts, the District breached its duty of good faith and fair dealing, and that some actions by the District (or by the passing of certain Florida legislation) have also violated the Florida Constitution’s Contracts Clause, Takings Clause, Due Process Clause, and Free Speech Clause.

So what’s happening now? Well, the District isn’t just sitting idly by. On September 6th, the District filed a motion to DISMISS Disney’s countersuit. Basically, they want the Court to throw Disney’s countersuit out and not allow it to continue.

In their motion, they argue that all of Disney’s counterclaims FAIL “as a matter of law” mainly because, in their view, the 2 agreements at issue (the Development Agreement and Restrictive Covenants) are “void as a matter of Florida law and therefore have never had any legal force or existence.”

The Board goes on to argue:

• The Agreements are invalid for various reasons (including because Disney allegedly failed to mail a notice to all affected property owners and for lack of consideration)
• The Florida legislature didn’t ratify the agreements as Disney seems to claim
• “Disney makes no promises to actually develop any property subject to the Development Agreement for the next thirty years.” So, according to the Board, “Disney could do nothing while benefiting from the extraordinary grant of control the District ceded to it.”
• Disney’s contract rights aren’t being impaired
• And more

Ultimately, the Board claims that Disney has failed to state a claim for relief and they’ve asked the Court to dismiss Disney’s countersuit “in its entirety.”

In terms of next steps, Disney will likely file a response to the motion to dismiss. Then, the Board may file a reply, after which time the matter may go before the judge so that the Court can make a determination as to whether Disney’s counterclaims (some or all) will be allowed to move forward. We’ll be on the lookout for updates.

Other News

Federal Lawsuit

In terms of other news, there has been some action in the federal lawsuit involving Disney and the District as well. This federal lawsuit was filed by Disney against the District and DeSantis, and it alleges that the actions they have taken are all part of a retaliatory scheme against Disney for speaking out against the Parental Rights in Education Bill.

In that federal lawsuit, Disney filed a motion in early September to amend its complaint so it can focus mainly on its First Amendment claim. That could narrow the issues of this lawsuit.

The judge, however, quickly denied the motion, indicating that Disney needed to comply with a local rule first. Disney may refile their motion after conferring with the Defendants and complying with the local rules. Thus far, Disney has not refiled the motion but that could take place soon.

Meetings

And finally, if you’re waiting for another update from the District itself, September could be an important month. On September 13th, 2023, the Board of Supervisors will hold its next meeting.

The agenda includes a number of items, mainly focusing on the budget for the District for fiscal year 2024. This will be the first reading of the budget. The second reading will take place later in September.

In the proposed budget, Disney lists $2,500,000 in expense savings for “WDW Passes & Perks.” This could be in reference to the changes the District has announced recently where it will be adjusting the perks it provides certain District employees and no longer providing Disney World Annual Passes.

The budget also lists certain “Disney Induced Expenses” which include a financial advisor, governance policies, litigation, and lawsuits. These expenses have cost the District over $2 million to date and are expected to cost just over $5 million in fiscal year 2024.

We’ll keep an eye out for more updates from the September 13th meeting and let you know what we find. Stay tuned for all the latest.

Click here to see the criticisms the Board has received regarding the removal of Annual Pass benefits