U.S. judge delays Whittemore lawsuit

RENO - Lawyers for Harvey Whittemore and the ex-business partners he is suing in court offered a glimpse Wednesday of the legal and political fireworks on the horizon as the Nevada developer and lobbyist awaits a criminal trial for alleged campaign fundraising violations.

"We know Mr. Whittemore has a little bit of a problem - according to the grand jury - telling the truth to the FBI," said Ken Robison, a lawyer representing Thomas Seeno and Albert Seeno Jr. of Concord, Calif.

His comments drew a rebuke from U.S. District Court Judge Larry Hicks during spirited arguments in federal court in Reno on Wednesday regarding jurisdiction of the case involving the former business partners.

"I'm going to caution both sides against personal attacks on one side or the other," Hicks said.

The judge later decided to put on hold Whittemore's $60 million civil lawsuit against the Seenos in his federal courtroom while similar litigation between the two sides continues in Clark County District Court.

"The state court action in this case concerns virtually the same damage claims as claimed in this case," he said. "This is clearly the kind of extraordinary circumstances that warrant a stay by the federal court."

Hicks said he stopped short of granting the Seenos' request to dismiss the federal case entirely so he can be sure Whittemore's rights are fully protected during the state proceedings. He said Whittemore can amend his counterclaims against Seeno as part of that state case.

Whittemore, 59, who has close ties to Senate Majority Leader Harry Reid and other prominent Nevada politicians, was indicted earlier this year on four counts related to campaign contributions made in 2007 to an unnamed elected federal official.

His trial was originally scheduled for Aug. 7 but has been postponed until early next year.