Katie, 40, wore a loose fitting cardigan and a matching bandeau top with jeans on the outing. The sweater kept sliding off her shoulders but she didn't seem to be worried about a wardrobe malfunction.
The Ray star said Sela, 21, is like "family" and he's simply mentoring her and helping her get her music career of the ground.
Katie is allegedly none too pleased that Jamie is the subject of romance rumors with Sela.
"They had an agreement to play fair and not embarrass the other by stepping out with anyone else in public – but Jamie’s done exactly that and she’s livid. They had an open arrangement provided he never rubbed her face in it, which of course he’s done over and over again," a source dished to RadarOnline.com.
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