The US judge overseeing a lawsuit against President-elect Donald Trump and his Trump University told both sides they would be wise to settle the case "given all else that's involved."
Lawyers for the president-elect are squaring off against students, who claim they were they were lured by false promises to pay up to $35,000 to learn Trump's real estate investing "secrets" from his "hand-picked" instructors.
On Thursday, Judge Gonzalo Curiel rejected a bid by Mr Trump to keep statements from the presidential campaign out of the fraud trial.
In the tentative ruling, Judge Curiel said Mr Trump's lawyers could renew objections to specific campaign statements and evidence during trial. Mr Trump's attorneys had argued that jurors should not hear about statements Mr Trump made during the campaign, including about Judge Curiel.
Mr Trump attacked the judge as biased against him. He claimed Judge Curiel, who was born in Indiana but is of Mexican descent, could not be impartial because of Trump's pledge to build a wall between the United States and Mexico.
Mr Trump's lawyers argued Judge Curiel should bar from the trial accusations about Mr Trump's personal conduct including alleged sexual misconduct, his taxes and corporate bankruptcies, along with speeches and tweets. They argued the information was irrelevant to the jury and prejudicial to the case.
In court papers, lawyers for the students claimed Mr Trump's statements would help jurors as they weigh the Republican's credibility.
"Defendants have not identified specific evidence that they wish to exclude," Judge Curiel wrote on Thursday. "Accordingly, the court declines to issue a blanket ruling at this time."
Mr Trump owned 92 percent of Trump University and had control over all major decisions, the students' court papers say. The President elect denies the allegations and has argued he relied on others to manage the business.
The trial is scheduled for November 28, but in Thursday's hearing Mr Trump's lawyer, Daniel Petrocelli, said he would ask to put the trial on hold until early next year, in light of the magnate's many tasks before his inauguration.
Judge Curiel said: "It would be wise for the plaintiffs, for the defendants, to look closely at trying to resolve this case given all else that's involved." He added he would allow Mr Trump to testify via video given his obligations.
The judge barred Mr Trump's lawyers from telling jurors the university had a 98 percent approval rate on student evaluations. That rating was irrelevant as to whether Trump University misrepresented itself, Judge Curiel wrote.
California judges often issue tentative rulings, which are finalised after a hearing with few major changes.
Judge Curiel presides over two cases against Trump and the university. A separate lawsuit by New York's attorney general is pending.
- Reuters