Jones Now Asks $2 Million to Settle Clinton Lawsuit

WASHINGTON —  Paula Corbin Jones, who is suing President Clinton for sexual harassment, has nearly tripled her demand to about $2 million to settle the case without a trial, sources familiar with the matter said Sunday.

The new settlement offer, up from the original $700,000 damage figure contained in her 1994 lawsuit, is so “outrageous” as to make settlement of the case before trial even more remote, according to a source close to Clinton. It increases the likelihood that the case will go to trial as scheduled in May.

Jones is also demanding a full apology from the president for his alleged sexual proposition to the then-Arkansas state employee in May 1991, when Clinton was governor. Clinton insists the incident never occurred.

Attorneys in the case declined comment Sunday because of a gag order imposed by U.S. District Judge Susan Webber Wright. First word of the new settlement offer was reported by CBS News.

In August, Jones parted company with her previous Washington lawyers after rejecting their suggestion that she settle the case out of court for $700,000, even without a clear apology from Clinton. Jones said at the time that her dispute “was not about money” and an apology from the president was more important.

One legal expert not involved in the matter said the new demand by Dallas lawyer Donovan Campbell may purposely be “off the charts” to guarantee that the lawsuit goes to trial as scheduled May 27 in Little Rock, Ark.

“It may also be a tactical move to show the White House and the public that Paula means business,” this expert said.

Some of Clinton’s advisors have said that even without an apology, any large settlement would be objectionable because it would leave the public with the impression that Clinton is guilty.

Jones has said in court papers that a state trooper summoned her to Clinton’s daytime hotel suite during an Arkansas trade show where she was working. She alleges the governor exposed himself and asked her to perform a sex act, which she says she refused.

Campbell, who took control of Jones’ lawsuit in September, heads a five-member team in a Dallas law firm that has specialized in conservative causes. Their legal expenses are being paid by the Rutherford Institute of Charlottesville, Va., a nonprofit organization that has espoused issues supported by the religious right.

Campbell’s entry into the case has led to a toughening of positions on both sides. Earlier this month, the Rutherford Institute, which recruited Campbell and is raising funds to pay his expenses, claimed in court papers that Clinton’s lawyers are attacking its tax-exempt status in retaliation.

In addition, Campbell and Jones held a news conference in Long Beach last week to disclose that the Treasury Department’s inspector general has opened an inquiry to determine why the Internal Revenue Service began an audit of Jones’ income tax returns only days after she rejected a potential settlement of the harassment lawsuit last year.

The White House has denied any role in instigating such an IRS audit.

Wright has set a Jan. 31 deadline for lawyers on both sides to complete private interviews of potential witnesses and a review of any documents they want to use for trial.

Jones’ lawyers are planning to take a videotaped sworn statement from the president, tentatively scheduled for Saturday. His testimony would not be made public until the trial.