Hollypark’s $1-Million Winner Remains Unpaid

Almost two years after Hollywood Park ran a $1-million handicapping contest, the unofficial winner has not received any money and about two dozen people claiming smaller prizes have also not been paid.

What began as a major promotion for the financially troubled track has wound up in three lawsuits that are further complicated by the bankruptcy of the insurance company that underwrote the $1-million first prize.

On July 21, 1985, Rodolfo Sahagun, an unemployed tomato farmer from Carlsbad, picked the winners of all nine races at Hollywood in a contest that drew about 30,000 entries.

In the winner’s circle the next day, Sahagun was presented with a giant cardboard check that signified his $1-million prize.

He was supposed to receive $50,000 in 20 annual payments, but the Mission Insurance Co., which guaranteed the $1 million for a reported premium of $80,000 from Hollywood Park, has refused to pay, saying that Sahagun violated contest rules by submitting multiple entries.

No one picked eight winners for $100,000, but there was a $50,000 prize for seven winners, and about 25 people are claiming payoffs of approximately $2,000 apiece.

Hollywood Park, with attendance last year dropping to pre-World War II levels and its racing operations losing $5.6 million in the last two years, is being sued by Sahagun, Mission Insurance Co. and one of the 25 patrons who claims he’s due $2,000.

“It’s a Catch-22 situation,” said Neil Papiano, the track’s chief counsel.

“Actually, we would win if Sahagun wins, because his money was insured. The $50,000 prize would have to come out of our pockets.”

Jim Robie, an attorney who represents Mission, said the company’s parent firm “is in the process of being liquidated.”

After that has been completed, the California Insurance Guarantee Assn. will take on about 13,000 of Mission’s claims, including the Sahagun case.

Sahagun’s attorney, George Martinez, has already lost the first round in court, but he is appealing, a process that could take a year to 18 months. The complaint by Stanley Sklute, the attorney representing one of the $2,000 claimants, is to be heard Tuesday in Torrance Superior Court.

Sahagun, 49, is still unemployed and on welfare, according to Martinez.

“Somebody has to be paid some money,” Sklute said, “and we feel that Hollywood Park has acted in bad faith. I can see where there’s a possibility that Sahagun could get his money and the people owed the $50,000 might be paid off, too.”

Sklute said that Hollywood Park belatedly offered to pay his client $2,000.

“I told them that it was too late, we had spent too much time on this case,” Sklute said. “What we’re looking for now is the $2,000, interest on the money and punitive damages, which could amount to a ton of money.”

Martinez’s original argument on behalf of Sahagun was that the contest rules were ambiguous regarding the one-entry limit. Sahagun apparently submitted three entries.

“What we’re also trying to prove,” Martinez said, “is that Rodolfo and his wife signed a Hollywood Park document, which was also signed by a track official, that declared him the winner of the contest.

“The paper was a release by Sahagun so that Hollywood could use his name and picture for promotional purposes. But the paper also declared him the $1-million winner, and it didn’t even specify that he had to be paid over 20 years.”

Papiano said that Sahagun’s case is weak.

“They’re in trouble if they think they can prove the contest rules were ambiguous,” he said. “And the argument about the signed paper is weaker than the other one.”