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Credit: SeaWorldSeaWorld Orlando just wrapped up yet another legal battle, with a Florida judge ordering the company to pay millions of dollars.
Gone are the days when Shamu reigned supreme at SeaWorld’s theme parks. In the wake of Blackfish (2013)—the controversial documentary that shed light on the living conditions and mental states of killer whales in captivity—SeaWorld Orlando, SeaWorld San Diego, and SeaWorld San Antonio have all shifted away from using orcas as a source of entertainment.
Today, the characters you’ll find at its Central Florida theme park are a little bit more mainstream. In 2019, SeaWorld Orlando replaced its kids-oriented land, Shamu’s Happy Harbor, with Sesame Street Land (formerly Sesame Street at SeaWorld).
This immersive land features attractions such as Elmo’s Choo Choo Train ride and Big Bird’s Balloon Race. Guests can explore iconic settings like Oscar the Grouch’s Garbage Can and Hooper’s Store, enjoy character meet-and-greets with favorites like Elmo and Cookie Monster, and participate in activities designed to entertain and educate young visitors.
However, this wholesome addition has generated some not-so-wholesome drama. As per Florida Politics, the Sesame Workshop nonprofit that retains the Sesame Street IP and SeaWorld Orlando have been engaged in a licensing fees dispute since 2021 that recently ended up in federal court.
Sesame Workshop accused SeaWorld of not paying licensing fees. Despite a 2023 arbitration panel ordering SeaWorld to pay $9,689,055, plus 9%
per annum in prejudgment interest and $151,151.58 in arbitration fees, Sesame Workshop was forced to take the battle to federal court last year after SeaWorld continued not to pay.
In response, SeaWorld accused Sesame of exploiting the pandemic and the resultant closure of its parks. It subsequently asked a judge to overrule the result of arbitration.
“Sesame seized upon the pandemic to try to line its pockets,” SeaWorld said in 2023.
“Sesame saw an opportunity to turn SeaWorld’s pain to its advantage. Though SeaWorld was fighting through an existential crisis triggered by the shutdown of all of its parks, Sesame — which had actually benefited during the pandemic from children’s increased reliance on television programming — was strategizing about how it could exploit the crisis to extract concessions from SeaWorld.”
However, U.S. District Judge Paul G. Byron didn’t buy this argument and instead sided with Sesame Workshop, doubling down on the arbitration ruling.
SeaWorld has now been ordered to pay $9.7 million plus prejudgment interest at 9% spanning from January 30, 2022, to today. That adds up to a daily rate of approximately $2,380. An additional interest sum of $1.7 million was also added to SeaWorld’s bill for 2022 and 2023, plus roughly $60,000 in arbitration costs. That comes to a whopping total of over $11 million.
The past few years have seen SeaWorld embroiled in other legal battles, including a lawsuit filed by the City of San Diego over SeaWorld San Diego’s unpaid rent and fees. San Diego claims that the SeaWorld park owes the city over $12 million, something it reportedly informed the park of in September 2021.
Two years later, after issuing several notices and warnings about missed payments, San Diego took legal action against SeaWorld. In response, SeaWorld filed a countersuit, arguing that the mandatory closure of its San Diego park during the pandemic breached its lease agreement, thus nullifying its financial obligations to the city.
SeaWorld also contends it is owed “substantial damages, in an amount to be determined,” due to the severe financial impact of the COVID-19-related shutdowns.
According to The San Diego Union-Tribune, the two parties attempted to settle the case on January 10. However, U.S. Magistrate Judge Daniel Butcher later posted a filing stating they had failed to resolve the matter. The two parties are slated to engage in a “mandatory settlement conference” on October 30, 2024.
Meanwhile, Osceola County resident Tatiana Eastman filed a federal lawsuit against SeaWorld Orlando in August, seeking class-action status.
The case focuses on the 5% surcharge added onto purchases within SeaWorld, arguing that the park doesn’t clearly warn customers about the additional fee on its website, at the park, or at the cashier’s stand. As per court documents, the amount of money that’s been charged exceeds approximately $5 million.
Other parks that fall under United Parks & Resorts – such as Busch Gardens Williamsburg – have also been accused of introducing the same “lawsuit-worthy” surcharge.
What do you think about SeaWorld’s string of legal battles?