Judge Mark E. Walker, a Barack Obama appointee, and the Chief Justice for the U.S. District Court for the Northern District of Florida, said he would no longer preside over the case, citing concerns of potential conflict of interest or perceived bias. In the 14-page ruling, he wrote:

Even though I believe it is highly unlikely that these proceedings will have a substantial effect on The Walt Disney Company, I choose to err on the side of caution — which, here, is also the side of judicial integrity — and disqualify myself.

Lawyers representing DeSantis sought to disqualify Judge Walker due to his prior mention of DeSantis’ actions against Disney in unrelated court cases. The Governor’s legal team argued that the judge’s remarks:

…could reasonably be understood to reflect that the court has prejudged Disney’s retaliation theory here, and therefore create significant doubts about the court’s impartiality.

Judge Walker agreed with Disney’s opposition to the Governor’s disqualification request, stating that his remarks:

…cannot raise a substantial doubt about my impartiality in the mind of a fully informed, disinterested lay person.

In the order, Judge Walker wrote that DeSantis’ lawyers cited examples of cases with “cartoonishly improper judicial conduct.” Judge Walker wrote that they:

Cherry-pick language from these cases to support their position without acknowledging the wholly distinguishable context underlying each decision.

Due to previously refusing to disqualify himself, Judge Walker’s Thursday night recusal came as a surprise, writing that he learned last week that a relative of his owned 30 shares of Disney stock. He said in his ruling that he had no choice but to step aside since his relative’s “financial interest” could be affected by the case. Judge Walker wrote:

The size or dollar amount of the third-degree relative’s financial interest is irrelevant.

In the order, the Judge clarified that he did not think or anticipate that Disney’s stock prices would be impacted by the case, stating:

To be clear, I do not think it likely that the outcome of this litigation would substantially affect The Walt Disney Company’s share price. Indeed, almost all of litigation involving Plaintiff is unlikely to have a substantial effect on The Walt Disney Company’s share price. Plaintiff is just one slice of the vast pie that makes up The Walt Disney Company.

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The conflict between DeSantis and Disney dates back to March 2022 when Disney criticized a Florida education law, limiting teacher’s instruction of students about gender identity and sexual orientation. In February, legislators gave DeSantis control over government services at Disney World, ending the company’s long-standing self-governance carveouts. The ongoing legal battle involves dueling lawsuits, with Disney suing DeSantis and his allies in federal court, while the governor’s tax district appointees have retaliated in state court, seeking to void previous agreements made by a Disney-controlled board.

The case has now been reassigned to Judge Allen C. Winsor, who was appointed to the court by Donald Trump in 2019.