Disney sues Florida's DeSantis for 'weaponizing' government
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[April 27, 2023]
By Dawn Chmielewski and Lisa Richwine
(Reuters) -Walt Disney Co sued Florida Republican Governor Ron DeSantis
on Wednesday, asking a court to overturn state efforts to control Disney
World and intensifying a battle between a global entertainment giant and
a likely White House contender.
In its lawsuit, Disney accused DeSantis and his supporters of illegally
using the state government to punish a company for voicing an opinion
that should be protected by free-speech rights.
The skirmish began last year after Disney criticized a Florida measure
banning classroom discussion of sexuality and gender identity with
younger children. DeSantis repeatedly attacked "woke Disney" in public
remarks.
Florida lawmakers passed legislation that ended Disney's virtual
autonomy in central Florida where the Disney World theme parks attract
millions of visitors each year.
In the action filed in federal court in Tallahassee, Disney said it
aimed to protect Disney World's employees, guests and developers from
"retaliation for expressing a political viewpoint unpopular with certain
State officials."
"Disney now is forced to defend itself against a State weaponizing its
power to inflict political punishment," the company said.
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Last year, Disney's then-chief executive, Bob Chapek, said the company
opposed a bill formally known as the Parental Rights in Education Act.
Critics called it the "Don't say gay" law.
Disney's lawsuit alleges that a newly formed DeSantis-appointed tourist
board violated the company's contract rights, and did so without just
compensation or due process. The company is asking the court to declare
Florida's legislative action unlawful.
DeSantis has argued that Disney, which employs roughly 75,000 people in
Florida, had been enjoying unfair advantages for decades.
"We are unaware of any legal right that a company has to operate its own
government or maintain special privileges," DeSantis spokesman Jeremy
Redfern said Wednesday on Twitter.
The governor is currently traveling in Asia on a four-country trade
mission.
Disney shares fell 1.4% to close at $96.61 on the New York Stock
Exchange on Wednesday.
POLITICAL RISK
DeSantis’ clash with Disney has been a centerpiece of his speeches as he
toured the United States ahead of his expected presidential bid. But as
the battle has intensified, it has brought mounting political risk.
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People gather at the Magic Kingdom theme
park before the "Festival of Fantasy" parade at Walt Disney World in
Orlando, Florida, U.S. July 30, 2022. REUTERS/Octavio Jones/File
Photo
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Former President Donald Trump, the favorite for the Republican
nomination, has slammed DeSantis’ stance, saying on social media
that the governor "is being destroyed by Disney" and warning that
the company would reduce its investments in Florida.
Carlos Curbelo, a former U.S. Republican congressman from Miami,
said DeSantis' attacks on Disney "made sense for a time."
"Now it’s coming across as petty and personal," Curbelo said.
"Disney clearly detects that the governor is in a weaker position
today and is going on offense for the first time in this conflict."
Before DeSantis appointees took over a state board that oversees
Disney World, the company pushed through changes to the special tax
district agreement that limit the board's action for decades.
Florida's new oversight body on Wednesday said Disney's plans for
potential expansion of Disney World did not comply with state law,
and declared that agreement void.
The Central Florida Tourism Oversight Board unanimously supported an
attorney's findings of legal flaws in the developers' agreement
Disney reached in February with a previous board, including a lack
of proper public notice.
"What they created is an absolute legal mess," said board Chairman
Martin Garcia. "It will not work."
Disney announced its lawsuit minutes later.
The tussle could boost DeSantis' support among U.S. Republican
voters, a Reuters/Ipsos poll found, but also hurt him among the
wider electorate.
Seventy-three percent of respondents - including 82% of Democrats
and 63% of Republicans - said they were less likely to support a
political candidate who backs laws designed to punish a company for
its political or cultural stances.
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The judge that will oversee Disney's case against DeSantis, U.S.
District Judge Mark Walker, has struck down several laws that
defined the governor's conservative political agenda, including
statutes that sought to limit the speech of college professors,
curtailed protests and restricted voting access.
(Reporting by Dawn Chmielewski and Lisa Richwine in Los Angeles;
Additional reporting by James Oliphant in Washington;Editing by
Sonali Paul, David Gaffen and Matthew Lewis)
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