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Something sounds fishy here to me, like maybe your "trusted" mechanic needs some extra funds because he is behind on boat payments.
If the engine "only leaks at idle or greater" it means it leaks whenever there is oil pressure, which is whenever the car is running. If he did in fact already replace the oil pump seals, there should be no leaks whatsoever. There is only one o-ring and one gasket for the oil pump assembly on your car.
A broken oil pump won't cause a leak, only a bad seal/gasket will cause a leak. If the oil pump is broke, you just won't get any flow to your engine, but that has nothing to do with it leaking. And one quart every 1K miles is very excessive. Sounds like maybe he missed putting back one of the seals and is trying to cover his a$$.
It means tearing down alot of the parts he already had off the car, but any trustworthy mechanic would fix it for free. If he won't, I'd find another mechanic and think strongly about small claims court.
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