DEL MAR — A multiyear bid-rigging lawsuit against the Del Mar Fairgrounds came to a close last week in the form of a $500,000 settlement check paid to carnival operator Talley Amusements.
The settlement comes three years after Talley, a Texas-based carnival operator, filed a lawsuit alleging corruption, favoritism and bid-rigging during the Fairgrounds’ selection process of a master carnival operator for the 2021 county fair, which was ultimately canceled due to COVID-19 restrictions.
Talley alleged that Fairgrounds executives changed scores in the 2021 bid process, which resulted in their losing the master contract to Ray Cammack Shows (RCS). The Fairgrounds intended to move forward with RCS as the operator for the 2022 fair but was prevented from doing so by an injunction in the Talley lawsuit.
Along with the half-million sum, the settlement also included a guarantee from the 22nd District Agricultural Association — the board managing the Fairgrounds — that Talley will have a spot at the San Diego County Fair for the next five years under an independent midway model. This model allows multiple operators to offer different games and rides, rather than one operator.
John Moot, the attorney representing Talley Amusements, said the settlement is a welcome outcome for his client.
“Talley is very pleased with the settlement. It accomplished one of its major goals, which is to prevent a master contract from being awarded to someone who did not have the highest score,” Moot said. “Talley is proud to play a major role at a traditional independent midway, and believes the next five years will be the best that the San Diego County Fair has ever had.”
The terms of the settlement agreement were reached in February, with the payment issued on April 11.
The Fairgrounds also acknowledged that the settlement provides a positive step forward for both parties.
“The settlement will provide for significant cost savings over continued litigation for the District, which produces the annual San Diego County Fair and owns and operates the Del Mar Fairgrounds. Talley Amusements will also operate a set of rides and games at the 2024 San Diego County Fair. This agreement allows both parties to focus on producing a successful fair this summer,” Fairgrounds spokesperson Tristan Hallman said in a statement.
The five-year agreement will take effect starting with this year’s San Diego County Fair, which kicks off June 12 with the theme “Let’s Go Retro.”
Outside of San Diego, Talley Amusements is currently suing the 32nd District Agricultural Association, which oversees the Orange County Fair, for alleged unfair bid processes related to their midway. Like in Del Mar, Talley lost out on a master contract to RCS.
According to Moot, a large part of the legal battle focused on whether district agricultural associations are exempt from the Public Contract Code, which sets requirements for a competitive bidding process and prevents the design of bids for just one applicant.
While the San Diego Superior Court judge in the case determined that the Del Mar Fairgrounds was not exempt from this code, the Orange County courts determined the opposite. Moot said Talley has appealed that decision, with an opinion in the matter to be issued in the near future.
“Hopefully, what we will see is that these district agricultural associations begin to comply with all the provisions of the Public Contract Code and the competitive bidding requirements. Talley felt strongly that that should be the case,” Moot said.
