Disney strikes subscription agreement clause in wrongful death lawsuit

The Walt Disney Company is back in the business of pleasing people.

Disney World visitor Jeffrey Piccolo sued the company after his wife, Kanokporn Tangsuan, died from an allergic reaction to food at Disney Springs' Raglan Road restaurant. Piccolo says he and Tangsuan disclosed their allergies and were assured their food was “allergen-free.” A medical examiner determined Tangsuan's cause of death was “anaphylaxis due to increased amounts of milk and nuts in her body.”

Disney does not own or operate Raglan Road—it leases the space to Great Irish Pubs Florida, Inc., which is also named as a defendant in Piccolo's lawsuit. At first, Disney argued, “It's not!”

“We are deeply saddened by the family's loss and understand their grief. Because this restaurant is neither owned nor operated by Disney, we are simply defending ourselves against the plaintiff's attorney's attempt to include us in his lawsuit against the restaurant,” a company spokesperson wrote in an email to IndieWire on Thursday, August 15.

It was the Away The fact that Disney was merely defending itself probably even made Donald Duck furious.

In response to Piccolo's lawsuit, Disney invoked a bizarre clause hidden in its terms of service for streaming subscribers (and online ticket buyers) to avoid a jury trial and force the case into arbitration. If you subscribe to Disney+ (or buy park tickets through the website), you'll have to click through a lot of legalese.

Typical, right? Well, maybe not this wording: “There may be instances where disputes arise between us,” the Disney+ Subscriber Agreement states. “You, on the one hand, and Disney+ and/or ESPN+, on the other hand, agree to resolve all disputes (including any related disputes involving The Walt Disney Company or its affiliates) through binding, individual arbitration.”

This includes “past, present and future” disputes. There are exceptions for small claims and intellectual property rights.

Piccolo had signed up for a Disney+ account in November 2019, the month the Disney+ account opened. He also purchased tickets to EPCOT through the website, but he didn't use them. Good enough, Disney said (essentially).

But after a public backlash in the press (like here at IndieWire), Disney changed course.

On Monday evening, Walt Disney World's communications team emailed IndieWire the following statement from Disney Experiences Chairman Josh D'Amaro: “At Disney, we strive to put humanity above all other considerations. Given such unique circumstances as this case, we believe this situation requires a sensitive approach to expedite a resolution for the family who suffered such a painful loss. For this reason, we have decided to waive our right to arbitration and litigate the matter in court.”

Ah, the wonderful world of Disney has been restored.

Piccolo is suing for “more than $50,000,” which is the statutory minimum to file a lawsuit in district court, as well as attorney fees and other costs. He and his lawyers had scheduled a hearing for October 2, 2024, to decide whether they can overcome the bizarre loophole in the subscriber agreement. It looks like that hearing will no longer be necessary.

IndieWire has contacted Piccolo's lawyers for comment on the new development, but we have not received an immediate response.