In December 2022, George Fong, a creative director at Disney, sold his beloved childhood home in Los Angeles and moved to Florida — sleeping in a hotel until his home in Orlando was ready.
Work had Fong moving around the country — leaving the state where his family had lived for generations. In the lawsuit filed in California Superior Court, Fong noted that in July 2021 The Walt Disney Company informed him and about 250 other employees that their roles — as part of the Disney Parks, Experiences and Products team — were being relocated to the new Lake Nona campus in Florida.
However, Fong claims that less than six months after selling the inherited home, he and his colleagues were told the Lake Nona project was canceled and that they would have to move back to California if they wanted to keep their roles.
That left Fong with a home that was unsellable: He listed it and then took it off the market a month later because it had no offers, and he finally sold it about three months later.
It's a similar story for Maria de la Cruz, who works as Disney's vice president of product design. In May 2022, de la Cruz sold her home in Altadena, California, and moved to Florida with her family. She is now also in the process of moving back west to work at the company's Glendale offices.
The two who have filed the suit – and are expected to have other plaintiffs join them – seek unspecified damages from their employer. The allegations against Disney include intentional misrepresentation, concealment of information, negligent misrepresentation and enticement of an employee by misrepresentation.
Disney did not immediately comment. Luck'Request for Comment.
Disney's Lake Nona saga was the result of a confluence of issues. The $1 billion project was announced by former CEO Bob Chapek and would include “collaborative workspaces, large group gathering spaces, extensive amenities, and efficient transportation options,” according to the lawsuit.
In addition, according to the lawsuit that was seen Luck, Disney advertised Orlando's affordable housing market, good schools, and lifestyle amenities.
However, in 2022 Chapek left the $185 billion company and the legendary Bob Iger returned to the corner office. Iger inherited a feud with Ron DeSantis that led to the Florida governor's government takeover of the theme park resort. And in addition to the fierce battle with the politician, there was, of course, the COVID-19 pandemic.
So, in May 2023, Disney announced it had canceled the plan. According to Reuters, Disney Parks chief Josh D'Amaro told employees: “Given the major changes that have occurred since the project was announced, including new leadership and changing business conditions, we have decided not to move forward with construction of the complex.
“This decision was not easy to make, but I believe it is the right decision.”
Less Desirable Homes
Fong and De La Cruz say the decision has resulted not only in upheaval, but also in the fact that the homes they've now bought back in California are of worse quality.
According to the lawsuit, Fong purchased a property in April that was “substantially smaller in area than his previous home in Los Angeles,” adding, “In addition to Mr. Fong, other individuals in similar situations have been forced to purchase or rent less desirable housing upon returning to California.”
In addition to rising home prices in California, mortgage rates also continued to jump from the summer of 2022 until a year later. According to the St. Louis Fed, at the beginning of June 2022, the average 30-year fixed mortgage rate in the U.S. was 5.09%. Almost exactly a year later, that figure rose to 6.79%.
Although the damages sought by the plaintiff — who is represented by attorneys Jason S. Lohr and Roberto G. Ripamonti of San Francisco-based Lohr Ripamonti & Segrich LLP — are not specified in the claim, it appears Fong has already been disappointed with the offers made by Disney so far.
The lawsuit states that Fong met with Disney managers to discuss his relocation and the resulting losses (home prices in Lake Nona soared when Disney announced its complex, then dropped significantly when the company announced its cancellation), but that he was “extremely disappointed” by the offer made. The lawsuit states that despite his indignation, both Fong and de la Cruz returned to California because they “recognized that [their] Job security and ability to perform [their] depended on the role [their] return.”
Lohr and Ripamonti did not immediately comment. Luck'Request for Comment.