A federal judge has indicated that Gina Carano's lawsuit against Disney and Lucasfilm over her termination from The Mandalorian will move forward. The case centers on whether the First Amendment protects private companies’ rights to sever ties with employees who publicly express views that clash with their corporate values.

U.S. District Judge Sherilyn Peace Garnett expressed skepticism towards Disney's argument for dismissal during a hearing on Wednesday. Disney's lawyer, Daniel Petrocelli, contended that the company has the right not to associate with a high-profile performer who espouses views it disagrees with, which could alienate fans of the Star Wars series. Petrocelli urged the court to dismiss the case on First Amendment grounds before further litigation ensues.

Judge Garnett, however, pointed to potential factual disputes, particularly allegations that Carano’s termination was a strategic move by Disney to divert attention from other controversial business decisions, including a contract dispute with Scarlett Johansson and criticism of Florida’s Parental Rights in Education law.

Carano, a former MMA fighter who appeared in the first two seasons of The Mandalorian, claims she was wrongfully terminated and discriminated against for voicing right-wing opinions on social media. Her lawsuit cites violations of California labor laws that prohibit employers from directing employees' political activities and disciplining them based on political speech.

Carano’s controversial social media post compared the political climate to the early stages of the Holocaust, which led to her dismissal. Lucasfilm announced in 2021 that Carano would not return to the series, prompting her lawsuit. She was not under contract for the third season or any other Disney productions at the time.

During the hearing, Gene Schaerr, representing Carano, emphasized that her comments were made on personal social media accounts, not during work or on set. Schaerr argued that Disney's First Amendment defense should not preclude the normal litigation process, which includes discovery to determine if state civil rights laws were violated.

Disney, on the other hand, argued that it has the First Amendment right to curate the viewpoints expressed by its employees, particularly those involved in high-profile productions. Petrocelli cited Supreme Court precedents that upheld the right of private organizations to exclude individuals whose presence might impair their ability to advocate public or private viewpoints.

“The messenger is part of the message,” Petrocelli argued, drawing a hypothetical comparison to extreme statements such as denying the Holocaust.

First Amendment Protections and Corporate Rights: Central Issue in the Carano Case

The core of Gina Carano's lawsuit against Disney and Lucasfilm revolves around a critical legal question: whether the First Amendment protects the rights of private companies to terminate employees who publicly express views that conflict with their corporate values. This issue is pivotal in determining the outcome of Carano’s case, as it directly addresses the balance between free speech rights and corporate interests in maintaining a specific public image.

First Amendment Protections for Private Companies

While the First Amendment restricts government actions that impede free speech, it also provides certain protections to private entities, allowing them to curate the messages they endorse and the views they associate with their brand. This aspect is particularly significant for companies involved in expressive activities, such as film and television production, where the alignment of public personas with corporate values is crucial.

In this case, Disney argues that it has the constitutional right to dissociate from an employee whose public statements conflict with its values. The company cites precedents where private organizations were allowed to exclude individuals whose presence conflicted with their expressive purposes. For example, in Boy Scouts of America v. Dale, the Supreme Court upheld the Boy Scouts’ right to dismiss an openly gay scoutmaster, reasoning that his presence would impair the organization’s ability to advocate its public or private viewpoints.

Relevance to Carano’s Termination

Carano’s dismissal from 'The Mandalorian' came after she posted controversial opinions on social media, which Disney and Lucasfilm deemed inconsistent with their values of respect, integrity, and inclusion. Disney contends that Carano’s statements could harm the Star Wars franchise by alienating its diverse fan base and contradicting the company’s public stance on inclusivity.

The relevance of the First Amendment in this context lies in Disney’s defense that its decision to terminate Carano is protected as part of its right to control the expressive content associated with its productions. Disney maintains that employing Carano after her statements could undermine its corporate message and reputation, which is a critical consideration in the entertainment industry where public perception is paramount.

Balancing Free Speech and Anti-Discrimination Laws

On the other side, Carano argues that her termination constitutes a violation of California labor laws, which protect employees from discrimination based on their political beliefs and activities. Her legal team asserts that the First Amendment should not shield Disney from these anti-discrimination protections, especially given that her statements were made in a personal capacity and not as part of her professional role.

Judge Garnett seemed open to allowing the case to proceed, acknowledging that there could be legitimate disputes that require further examination through discovery. She noted the complexity of balancing First Amendment rights with state anti-discrimination laws.