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Company Will Pay Clinton's Bills Again

Associated Press
Sunday, June 7, 1998; Page A05

An insurance company has agreed to resume paying President Clinton's legal bills in the Paula Jones case now that all aspects of the lawsuit are to be appealed, an attorney familiar with the case said yesterday.

Chubb Group Insurance stopped covering Clinton's legal bills last August after a federal judge threw out Jones's defamation charges against the president. The company maintained that the president's personal liability policy did not cover the remaining allegation of sexual harassment.

Now that Jones will appeal both the defamation and sexual harassment charges, the company has agreed to resume coverage, beginning again in April, when the appeal was filed, the attorney said.

"The bottom line is that since they're appealing that part of the order . . . they have an obligation to defend," said the attorney, who spoke on condition of anonymity.

Clinton's lead attorney on the Jones case, Robert S. Bennett, was away from his home and office yesterday and not available for comment. Nor were officials at Chubb.

Still unresolved is payment of more than $1 million from Chubb and another insurance company, State Farm, for legal expenses incurred after last August, according to the attorney, who spoke on condition of anonymity.

Bennett has enlisted the Washington law firm of Covington & Burling to collect – by negotiation or by lawsuit – legal fees incurred by the president when the two insurance companies stopped financing Clinton's defense last year after the defamation charge was dismissed.

Under a policy he bought several years ago, Chubb and State Farm have already paid $1.5 million in legal bills Clinton incurred in the Jones suit up until the defamation charge was dismissed.

Jones claims Clinton made advances toward her in a Little Rock hotel room in 1991 while he was governor of Arkansas. The president denies the charge.

Chubb's decision to resume covering Clinton's costs was reported yesterday by U.S. News & World Report.

© Copyright 1998 The Washington Post Company

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