Florida judge rejects Disney bid to dismiss lawsuit over theme park

July 29 (UPI) -- A state judge in Florida has rejected Disney's request to dismiss a lawsuit filed against the entertainment giant by an oversight board relating to a battle for authority over the Disney World theme park, the state's largest employer.

Judge Margaret Schreiber issued her decision on Friday in the latest round of legal battles between Disney and Florida Gov. Ron DeSantis.

The Central Florida Tourism Oversight District had filed the lawsuit against Disney in May, claiming that a deal the company quietly made with a previous board earlier this year regarding the Reedy Creek Improvement District should not be valid.

The state lawsuit is different from the federal First Amendment lawsuit Disney has filed against Florida and is the latest development in a standoff.

Disney had argued in its petition to the court that the lawsuit was moot because the Florida Legislature passed a law that nullified the deal after DeSantis eliminated the Reedy Creek Improvement District and reestablished it as the Central Florida Tourism Oversight District.

"The validity of these agreements is clearly a question of great public importance," Schreiber wrote in her decision, which was obtained by UPI.

She added the agreements between the former Reedy Creek and Disney "contradict the Legislature's policies" and, if valid, would allow Disney to control all development rights and land use regulations in what she called "one of the most heavily visited areas in Central Florida."

"These issues implicate matters of the State's sovereignty and are of great interest to its economy and citizenry," Schreiber wrote.

Disney believes the federal lawsuit should be settled before the state one.

That lawsuit stems from DeSantis' treatment of the company after Disney's former chief executive officer criticized a state law often referred to as the "Don't Say Gay" law.

The lawsuit bans teachers from instructing students on gender identity and sexual orientation.