Oct. 7 (Bloomberg) -- Walt Disney Co. won dismissal of a lawsuit claiming a ban on personal two-wheel transporters at its facilities violates federal disabilities laws, after a judge rejected a proposed settlement in the case.

Two Illinois residents and one from Iowa sued Disney in November 2007 after the company barred them from using the Segway Personal Transporter on family vacations at four theme parks in Florida. As an alternative to Segways, Disney agreed in December to acquire at least 15 newly designed electric stand-up vehicles to settle the case.

U.S. District Judge Gregory Presnell in Orlando yesterday voided an earlier decision granting preliminary approval to the settlement and threw out the case. The plaintiffs, who are all able to use wheelchairs or scooters, failed to show that Segways were “necessary” to access the park, Presnell said in the decision.

“Although some individuals may, with good reason, not want to use those devices and instead prefer to use a Segway, that preference -- standing alone -- is not essential to accessing Disney’s parks,” Presnell wrote in the opinion.

Bernard Dempsey, an attorney for plaintiff Mahala Ault, and Jason Medley, representing plaintiff Stacie Rhea, didn’t immediately return phone and e-mail messages seeking comment yesterday. John Baker and J. Phillip Krajewski, attorneys for plaintiff Dan Wallace, also didn’t return phone messages.

‘Ruling Consistent’

“This ruling is consistent with what we’ve advocated all along in this case that we have appropriately balanced the need to maintain a safe environment for everyone while at the same time meeting our legal requirements to provide access to those with mobility impairments,” Andrea Finger, a spokeswoman for Disney, said in a phone interview.

The Segway, a two-wheeled, self-balancing transportation device, allows riders to remain upright and steer with body movements. The device, first sold in 2002, is used by as many as 7,000 people in the U.S. with mobility-related disabilities, according to court documents.

Disabled people who objected to the settlement argued at a court hearing this year that the Segway was their preferred choice of transportation. The Justice Department argued that the settlement agreement would compromise its ability to regulate the theme park industry.

‘Leaves Door Open’

Aaron Bates, an attorney for many of the objectors, said yesterday’s decision was a “win” for people with disabilities.

“This leaves the door open for others to file suit, and the government may soon recognize Segways in the same way they do wheelchairs and other mobility devices,” Bates said in a phone interview.

Disney’s new vehicles, called ESVs, would replicate in dimension and operation a wheelchair while allowing users to stand upright, the company said in court papers. Under the terms of the settlement, the vehicles would have been rented on the same terms as sit-down electric vehicles.

Presnell noted in his opinion that the Americans with Disabilities Act may need to be broadened to address new devices available to the disabled. Presnell suggested that another branch of government has the initial responsibility to ensure that the disabled can take advantage of the Segways.

‘Equal Treatment’

“The real question, it seems, is the extent to which the ADA can (or should) promote equal treatment and human dignity by requiring acceptance of new technologies,” Presnell wrote.

Presnell’s decision now puts Disney in jeopardy of other suits challenging its ban, said David Ferleger, an attorney for the non-profit group Disability Rights Advocates for Technology.

“Disney failed to obtain court approval for its ban on Segways,” Ferleger said in an e-mail. “Instead, the court emphasized the great benefit of this new technology and that federal law protects the dignity of people with disabilities.

Disney, based in Burbank, California, fell 7 cents to $28.11 at 11:35 a.m. in New York Stock Exchange composite trading. The shares have gained 24 percent this year.

The case is Ault v. Walt Disney World Co., 07-01785, U.S. District Court, Middle District of Florida (Orlando).

To contact the reporters on this story: Sophia Pearson in Wilmington, Delaware, at spearson3@bloomberg.net; Doris Bloodsworth in federal court in Orlando at dorisbloods@earthlink.net.

Last Updated: October 7, 2009 11:37 EDT