Battle between Disney and DeSantis now playing out in court

Geoff Bennett:

The battle between the Walt Disney Company and Florida Governor Ron DeSantis has eclipsed politics and is now playing out in the courts.

Yesterday, Disney filed suit in federal court, arguing it's the victim of a — quote — "targeted campaign of government retaliation." Disney accuses the governor and his allies overseeing the company's special taxing district of violating the company's constitutional rights. Disney says it's a victim of targeted retaliation as punishment for speaking out against DeSantis' policies. The governor says it's about accountability.

Ron DeSantis, a likely 2024 presidential candidate, responded to the suit today while on a trip in Israel.

Gov. Ron DeSantis (R-FL):

They're upset because they're actually having to live by the same rules as everybody else. They don't want to have to pay the same taxes as everybody else. And they want to be able to control things without proper oversight, whereas every other Floridian has to have this type of oversight, all Florida businesses.

So it's a little bit much to be complaining about that. I don't think the suit has merit. I think it's political.

Geoff Bennett:

Let's break down this case with Arian Campo-Flores, who's been covering it for The Wall Street Journal.

Thank you for being with us.

And Disney is accusing DeSantis of orchestrating a campaign of government retaliation, of violating its protected free speech. There are, as I understand it, a number of First Amendment lawyers who say this case has real merit. Why is that?

Arian Campo-Flores, The Wall Street Journal:

Well, because the argument that Disney is making is that, because it exercised its free speech rights and came out against this legislation that was passed last year, the parental rights and education law, which critics have called the don't say gay law.

That, because Disney chimed in on that, the governor and the legislature then orchestrated this campaign of retaliation against the company by, for instance, seeking to end these contracts that it had signed earlier this year, passing legislation to strip it of control of this special tax district that it had long controlled.

And so it was essentially, in their view, using the machinery of the state to punish them for expressing an opinion about a piece of legislation.

Geoff Bennett:

You know, it would normally be an act of political malpractice for a governor to fight with the marquee corporation in his or her state the way that Ron DeSantis has done with Disney.

But when this feud started around this time last year, last spring, he was initially rewarded for it. He raised a ton of money for his reelection campaign, he won reelection in a dominant victory, and there were Disney lobbyists who ultimately co-chaired his inauguration.

What changed between then and now? Did Disney just get tired of being a corporate punching bag?

Arian Campo-Flores:

I think what happened is that it has just dragged on so long, and it has also escalated.

So I think Disney's initial approach to this was to stay quiet, lie low, try to work behind the scenes and get some sort of agreement resolved with the state. But what ended up happening is that that apparently got nowhere.

And then things have escalated, because, since there was no resolution to it, Disney went ahead and tried to secure these development rights, basically, earlier this year under a previous board of this district. And then, once the new board that was appointed by Governor DeSantis discovered what had happened, I mean, that really angered the governor, and escalated things further, to the point now where you have this what is likely to be very drawn-out litigation over who can control the development rights in this district.

Geoff Bennett:

This lawsuit has been assigned to a federal judge who has frequently ruled against DeSantis' conservative agenda. Tell us about this judge and what impact that might have on the case.

Arian Campo-Flores:

Yes, well, this is Judge Mark Walker, who has been on numerous cases that have involved policies that the DeSantis administration has supported.

He has ruled against the governor on many occasions. The governor has often singled him out for criticism. And, in some cases, those decisions by the lower court judge, by Judge Walker, have then been reversed or gone back in the governor's favor once they hit the 11th Circuit Court of Appeals.

So I think this — if you're attorneys for Disney, you're probably feeling good that you got this case assigned to Judge Walker. On the other hand, DeSantis has often emerged with at least a partial victory later on once it goes to the appellate level.

Geoff Bennett:

There is reporting out today that Governor DeSantis is planning to jump into the presidential fray as early as mid-May, potentially first with an exploratory committee. He was asked about that today.

Here's how he responded.

Gov. Ron DeSantis:

There's not been anything set. I have been focused on this mission that we have been doing. We're going to end up making it pretty much around the world by the time we're done. And if there's any announcements, those will come at the appropriate time.

But it's not — if anyone's telling you that somehow they know this or they know that, that's just inaccurate, because there's not been any decisions made.

Geoff Bennett:

Based on your reporting, is there any reason to think that he's not running or he doesn't plan to run?

Arian Campo-Flores:

I mean, based on my colleagues' reporting, I think that the — what they're hearing is that he very much does plan to run, but that has — those plans have not changed. I think it's more a question of timing.

And so we will see. Clearly, this case has proven to be kind of a distraction to all that.

Geoff Bennett:

What we will you watching for as this case proceeds/

Arian Campo-Flores:

Well, I think there's a possibility of even more litigation, because there is — apart from what — the lawsuit that was filed over the board's actions, there is also a piece of legislation that's moving through the Florida legislature that would also seek to nullify these agreements that Disney struck.

And if, in fact, that does pass and the governor signs it into law, then that creates yet another reason or another trigger for which Disney might sue. So you might see even more litigation on this.

Geoff Bennett:

Arian Campo-Flores with The Wall Street Journal, thanks so much for sharing your reporting with us.

Arian Campo-Flores:

My pleasure.