ST. PAUL, Minnesota (AllPolitics, October 20) -- Attorneys for Paula Jones asked a federal appeals court Tuesday to reinstate her sexual harassment suit against President Bill Clinton, a case that has evolved into a congressional impeachment inquiry. But lawyers for both Clinton and Jones acknowledged on their way out of court Tuesday that a settlement is still possible.

"It is time to get all this behind us, to get this behind the American people," Clinton attorney Bob Bennett said. "The president will put his personal feelings aside about the case and resolve it, if we can do it with honor. But we cannot do it with honor at $2 million and a package deal with strings attached."

In this story:

• She says, he says
• Settlement complications

Jones' lead attorney Donovan Campbell wouldn't comment on the specifics of any settlement talks but said he expects "that some settlement discussions will be ongoing."

Inside the courthouse, each side got 30 minutes to present their case to the 8th U.S. Circuit Court of Appeals -- a three-judge panel in St. Paul, Minnesota. There was no immediate indication when the judges might rule.

U.S. District Judge Susan Webber Wright in Little Rock, Arkansas originally dismissed the Jones case by summary judgment on April 1.

"This record has more than enough evidence to establish the existence of a hostile work environment," Jones attorney Jim Fisher told the judges during the proceeding.

But Clinton's attorney, Amy Sabrin directly refuted that claim: "There were no explicit threats of reprisal and there were no reprisals," she argued.

"We don't think that anyone can predict how the 8th Circuit will rule based on the questioning," Campbell said following the proceeding. "We do think that a number of legal issue were brought to the forefront. It appears that the judges are very interested ... in whether Mrs. Jones' version of the conduct of Mr. Clinton in that hotel room was severe or not."

According to CNN's legal analyst Greta Van Susteren, who was in the courtroom during the arguments, that line of questioning got to the heart of the appeal.

"Everybody conceded that one event could account or could be sexual harassment if it is severe. The big question is -- can a trial court judge throw a case out? Can she decide if it is severe or not? Or is that a question of fact that must go to a jury," Van Susteren said on CNN's Burden of Proof.

"We were please with the proceeding today both in tone and in substance," Clinton attorney, Bennett said after the session.

Neither Jones nor Clinton were present for the arguments. The president is in Maryland attending Israeli-Palestinian peace talks.

In a brief telephone conversation Monday afternoon, Jones told CNN she had "no plans to attend opening arguments in St. Paul Tuesday." Jones and her husband Steven expect to "remain in California for the time being."

After the session her attorneys said Jones did not attend because of child care concerns.

It was the Jones legal team that first learned of Clinton's relationship with Monica Lewinsky and subpoenaed the former White House intern. Lewinsky subsequently submitted a sworn affidavit claiming she never had a sexual relationship with Clinton.

Among the issues for the appeals judges to determine is whether subsequent disclosures from Independent Counsel Ken Starr -- who reported to Congress last month that the president may have committed impeachable offenses in his deposition in the Jones case -- make it necessary for Wright to reconsider her dismissal.

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CNN's Bob Franken reports on the first day of the appeal
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The appeals court, all Republican appointees, have not been sympathetic in the past to appeals from the president's attorneys, but they also have a history of not favoring workplace claims.

On Monday in Little Rock, Wright released 724 pages of previously seal materials from the Jones case. The documents show that lawyers for both Clinton and Jones sought information about the sexual history of the other party. [Full story]

Jones, a former Arkansas state clerk, contends that she suffered from a "hostile work environment" and that her civil rights were violated in 1991 when she rejected a sexual advance from then-Gov. Clinton. The president denies the any wrongdoing.

Even now, Jones' lawyers contend in a written brief, she "continues to feel fearful and embarrassed, and is unable to watch Clinton or read an article about the case without experiencing mental anguish."

The Jones legal team also argues that there is, "extensive evidence of perjury, subornation of perjury, witness tampering and obstruction of justice by Mr. Clinton and his agents" arising out of Starr's investigation.

But in her original decision Wright ruled that, even if Clinton made a "boorish and offensive" sexual advance in a Little Rock hotel room, Jones was unable to demonstrate that she suffered a "tangible job detriment" through denial of promotions or raises.

Given this deficiency in Jones' case, the judge ruled that it didn't matter whether Jones could demonstrate that Clinton had harassed or rewarded other women, depending on their willingness to have sex with him.

The president's lawyers are expected to contend during oral arguments to the appeals court -- as they did in a written brief -- that none of the "alleged events interfered with her (Jones) job performance, her health, or her emotional well-being."

The president's side also will contend that the allegations, even if seen in the most favorable light to Jones, do not rise to the level of sex discrimination or harassment

As the House impeachment inquiry proceeds, key lawmakers, including Senate Judiciary Committee Chairman Orrin Hatch (R-Utah) have advised Clinton to settle the Jones case.

Hatch has suggested that a settlement in the Jones case could be a harbinger of a plea bargain resolution to the impeachment proceedings facing Congress. Such a deal may include, according to Hatch, an admission of lying in the Jones case about the affair with Lewinsky and a congressional censure.

Settlement talks resumed in September and continued through noon on Monday.

Jones has dropped her demand for a formal admission and apology from Clinton and negotiations have instead focused on money. The four-year legal battle has been costly and now several groups within the Jones camp are seeking reimbursement.

Joseph Cammarata and Gilbert Davis, Jones' first lawyers, have filed a claim for $800,000 as compensation for their work, which included a trip to the Supreme Court.

Other interested parties include Jones' current Dallas-based lawyers, headed by Donovan Campbell and Jones' de-facto spokeswoman and California adviser, Susan Carpenter-McMillan and her husband Bill.

Even if Campbell and Clinton attorney Bob Bennett found a middle ground between the $1 million demanded by Jones and the $700,000 offered by the president, there is no guarantee the parties would accept it.

A further complication is an additional $1 million offer to Jones from New York businessman Abe Hirschfeld, who is facing 123 counts of tax evasion. Clinton has sought to avoid the perception that any of his settlement money would be linked to Hirschfeld's pledge.

Correspondent Bob Franken and The Associated Press contributed to this report.

Tuesday, October 20, 1998

• House OKs budget deal; Senate to vote Wednesday
• Clinton to watch Glenn blastoff
• Military officers risk discipline if they criticize Clinton
• Podesta named White House Chief of Staff
• Georgia legislator, son of civil rights leader, indicted
• Jones asks to have case against Clinton reinstated
• Ken Starr's wife speaks out
• Survey finds American optimism high
• McCurry: Clinton 'stupid' in personal life

Election '98
• Big bucks may decide close Washington Senate race
• New financial fuel in California Senate race
• An old-time showdown in North Carolina's Senate race
• Georgia race for lieutenant governor takes nasty turn
• Wrestler barges into Minnesota governor race

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