Disney is no longer asking a Florida court to dismiss a wrongful death lawsuit from the family of a woman who died after an allergic reaction at a Disney shopping complex.

The dropped appeal attempted to use a sign-up for the company's streaming service Disney+ as grounds that the family were not able to sue Disney due to the terms and conditions.

Jeffrey Piccolo's wife, Kanokporn Tangsuan, died after eating at a restaurant in the Disney Springs shopping complex in Orlando, Florida in October 2023.

Dr Tangsuan had severe food allergies and had chosen the restaurant because both Disney, as the landlord, and the tenant restaurant advertised that it made accommodating people with food allergies a top priority.

The company filed a notice in Orange County court on Tuesday to withdraw the dismissal motion, which had drawn swift backlash when it became public.

Josh D'Amaro, chairperson of Disney's theme park division, said in a statement that the entertainment giant will waive its arbitration rights and allow the suit to proceed in court.

"With such unique circumstances as the ones in this case, we believe this situation warrants a sensitive approach to expedite a resolution for the family who have experienced such a painful loss."

Disney had previously argued that Jeffrey Piccolo could not sue the company because he agreed to settle any lawsuits against the company out of court when he signed up for a one-month trial subscription to Disney+ back in 2019.

Mr Piccolo's lawyer said his client will continue to "pursue justice on behalf of his beloved wife" and hopes that their ordeal has helped raised awareness of the challenges people with food allergies face.

He also noted that others seeking to take Disney to court risk facing a similar legal challenge as the arbitration provision remains in many of the company's terms and conditions.

In a response filed earlier this month, Mr Piccolo's legal team had argued that it was "absurd" to believe that the more than 150 million subscribers to Disney+ have waived all rights to sue the company and its affiliates in perpetuity because of language "buried" in the fine print.

The company, in its bid to have the lawsuit dismissed, argued Piccolo had not agreed just to the arbitration terms in his Disney+ trial, but also again when he signed up for an account on Disney's website and app in order to purchase the couple's tickets for their ill-fated theme park visit.

Both sides had been slated to make their case before a judge in Orlando on October 2, which has now been cancelled.

Arbitration allows people to settle disputes without going to court and generally involves a neutral arbitrator who reviews arguments and evidence before making a binding decision, or award.

Disney, in a follow-up statement, said that it was merely defending itself against Mr Piccolo's attempt to include the company in his lawsuit against Raglan Road, the Irish pub in Disney Springs where the family dined.

Dr Tangsuan had a severe allergy to nuts and dairy products, and the waiter had assured them her food was prepared without allergens, the lawsuit states.

But less than an hour after finishing their dinner, she had difficulty breathing, collapsed and died at a hospital, despite self-administering an EpiPen, according to the lawsuit.

The medical examiner determined she died as a result of "anaphylaxis due to elevated levels of dairy and nut in her system," the lawsuit states.

AP/Reuters