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- A judge ruled Friday that a lawsuit against Disney in Florida would proceed.
- Disney had asked the suit to be dismissed, arguing that the case is "moot."
- The case relates to a legal loophole used by Disney to take back control of its operations in Florida.
Governor Ron DeSantis secured a small legal victory Friday after a state judge rejected Walt Disney World's request to end a lawsuit brought against the entertainment giant by a DeSantis-appointed board in May, multiple outlets reported.
Disney requested that the lawsuit, related to a legal maneuver that allowed the Florida park to regain control over its development decision-making after DeSantis tried to take it away, be thrown out. The park argued that the case is "moot" in state court because of a DeSantis law that voided development agreements Disney signed up to three months before the appointed board was created, PBS reported.
The Friday ruling in favor of the Central Florida Tourism Oversight District, which brought on the suit, allows the board to continue its countersuit to void that legal loophole.
"Today's decision has no bearing on our lawsuit in federal court to vindicate Disney's constitutional rights, and we are fully confident Disney will prevail in both the federal and state cases," a spokesperson for Walt Disney World said in a statement to Insider.
Ninth Circuit Court Judge Margaret Schreiber wrote that the "legal uncertainty" of Disney's agreements requires that a decision must be made through the courts, per a copy of the ruling obtained by Politico.
"We are pleased to see that Disney will have to defend themselves on the merits instead of having the corporate press spike the football on their behalf," Jeremy Redfern, press secretary for the Governor's office, told Insider in a statement.
The ruling marks another legal punch in the year-long fight between DeSantis and Disney. The feud stems from a statement made in March of last year by then-CEO Bob Chapek opposing the "Parental Rights in Education" championed and signed into law by DeSantis. The bill, dubbed "Don't Say Gay," by those opposed to it, limited discussions of sexual orientation and gender identity in kindergarten classrooms through third grade when it was passed in March 2022.
Disney later released a second statement indicating the company would support having the law repealed or struck down in the courts, saying the bill "should never have been signed into law." The law was amended in April to include grades 4 to 12.
In response to Disney's criticism, DeSantis removed Walt Disney World's Reedy Creek district, which gave the company self-governing status, and replaced it with the Central Florida Tourism Oversight District.
However, on February 8, outgoing Reedy Creek board members signed an agreement with Disney that gave the company the ability to approve development plans or alterations and struck another deal with a Disney subsidiary to set its own utility rates. As a result, the newly appointed DeSantis board was stripped of its power.
Disney later sued DeSantis in federal court, alleging that his actions were retaliatory and violated its constitutional rights and ability to make money in the region. DeSantis requested in June that this suit be dismissed after claiming that he has immunity while passing legislation as governor, which Disney opposed.
The tourism district countersued, a move allowed to continue in Friday's ruling, asking a judge to make the land control loophole "void and unenforceable."
"Disney has no right to its own government and special privileges," Redfern's statement said. "Governor DeSantis will ensure that there will be a level playing field for businesses in Florida."