A widower’s wrongful death lawsuit against Walt Disney Parks and Resorts has hit a new roadblock as Disney seeks to have the case dismissed and moved to arbitration. The plaintiff, Jeffrey Piccolo, is suing the company for the death of his wife, Kanokporn Tangsuan, who passed away after suffering a severe allergic reaction while dining at a Disney Springs restaurant in October 2023.
Disney’s Legal Strategy
Disney is attempting to dismiss the $50,000 lawsuit by arguing that Piccolo’s 2019 subscription to a one-month trial of Disney+ included a clause requiring all disputes with the company to be resolved through arbitration. The company further claims that because Piccolo purchased Epcot Center tickets through Disney’s website, the lawsuit is barred, even though the case pertains to the wrongful death of his wife and is unrelated to Disney+ or the ticket purchase.
In response, Piccolo’s lawyer, Brian Denney, described Disney’s argument as “preposterous” and “outrageously unreasonable.” Denney criticized the notion that signing up for a Disney+ free trial could prevent a customer from seeking a jury trial for any dispute involving a Disney affiliate or subsidiary, regardless of the circumstances.
Details of the Incident
The lawsuit details the events leading up to Tangsuan’s death. She, her husband, and her mother-in-law dined at Raglan Road Irish Pub, located in Disney Springs, part of Walt Disney World Resort in Florida. Due to Tangsuan’s severe dairy and nut allergies, the family chose the restaurant because they believed it had proper safeguards in place. Despite confirming multiple times with the waiter that certain foods could be made allergen-free, Tangsuan began experiencing a severe allergic reaction after dinner. Despite administering an Epi-Pen, she tragically died from anaphylaxis, as confirmed by a medical examiner’s report.
Piccolo is seeking damages exceeding $50,000 under Florida’s Wrongful Death Act, including compensation for mental pain and suffering, loss of companionship, loss of income, and medical and funeral expenses.
Impact on Disney’s Stock
Short-Term Effects:
- Market Reaction: News of the lawsuit and Disney’s legal maneuvering could lead to short-term volatility in the company’s stock price. Investors might react negatively to the potential reputational damage and legal risks associated with the case.
- Investor Sentiment: If the case garners significant media attention, it could negatively affect investor sentiment, especially if there are concerns about Disney’s legal strategies and the implications for future cases.
Long-Term Impact:
- Reputation and Brand Image: Disney’s brand, built on family-friendly values, could suffer if the public perceives the company’s legal arguments as unfair or overly aggressive, especially in a wrongful death case. This could lead to a longer-term impact on the stock as consumer trust is eroded.
- Legal and Financial Consequences: While $50,000 is a small amount for a company the size of Disney, the case could set a precedent that might invite further litigation. Ongoing legal costs and potential settlements could also have a more sustained impact on Disney’s financial performance and, consequently, its stock price.
- Arbitration Clause Scrutiny: The case might lead to increased scrutiny of Disney’s use of arbitration clauses in its contracts, which could have broader implications for the company and others in the industry. If courts find such clauses to be overly restrictive, it could lead to more lawsuits being allowed to proceed, posing additional financial risks.
In summary, while the immediate financial impact of the lawsuit may be limited, the potential for reputational damage, legal costs, and investor concerns could have a more significant effect on Disney’s stock in both the short and long term.
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