How does Tully react when he sees Waldo Stilton in San Pedro?

When Tully goes to retrieve his wallet from Dawn's room at the resort in San Pedro, he is shocked to see Waldo Stilton. He quickly hides behind a coconut palm and tries to think of what to do. Luckily, he finds a President Reagan mask in the bushes and tries to blend in with the rest of the drunk spring breakers.