NEWS LITE : SECOND STORY DOESN'T SUIT CARRADINES.

``Kung Fu'' actor David Carradine and his wife, Marina Anderson, didn't think much of a Jan. 11 write-up in People, so they sued for libel and breach of contract.

The lawsuit accuses People parent Time Warner Inc. of violating a ``gentleman's agreement'' for a ``nice'' story in exchange for the couple dropping a lawsuit against another of Time Warner's subsidiaries, Who Weekly in Australia.

Instead, People wrote of alleged substance abuse and called Carradine ``washed up,'' ``unemployable'' and ``a drunk.'' The story also falsely stated that he was ``court-martialed out of the Army,'' said the couple's attorney, Neville L. Johnson.

Time Warner magazine head Norman Pearlstine met personally with the couple and ``profusely apologized'' for the Who Weekly piece, which called Anderson a porn star, according to the lawsuit filed Monday. He had promised that a nice story on the Carradines would be done for People or Entertainment Weekly, the suit said.

People magazine said it stands behind its story. ``The lawsuit is totally false and we intend to demonstrate in court that their lawsuit is totally without merit.''

Leonardo's bodyguards apologize

Leonardo DiCaprio simply causes a riot wherever he goes.

His bodyguards were questioned by Taiwanese police after photographers angling for a picture Monday in Taipei's airport complained that they shoved and insulted them, Taiwanese television and newspapers reported Tuesday.

No charges were filed after the bodyguards, reported to number three or five (depending on the source), admitted inappropriate behavior and apologized to reporters, according to the mass circulation China Times, the entertainment paper Min Sheng Daily and the TVBS entertainment station.

Pictures showed DiCaprio smiling behind sunglasses, a pulled-down baseball cap and plastic shopping bag partially hiding his face.

The tanned, slim DiCaprio was on his way to Los Angeles from Bangkok after completing shooting of ``The Beach.''

Film, TV producer says marriage dead

Producer James L. Brooks has filed for legal separation from his wife of 20 years, citing irreconcilable differences.

Brooks, who produced the Oscar-winning movies ``Terms of Endearment,'' ``Jerry Maguire'' and ``As Good As It Gets,'' as well as ``The Mary Tyler Moore Show'' and ``The Simpsons'' on television, is the father of three children by Holly Beth Holmberg.

The two were married on July 23, 1978, and separated in September. He wants the separation made permanent.

Brooks is seeking immediate joint custody of the children: Chloe, 14, Cooper, 12, and Joseph, 5. He asked that division of property be determined at a later date.

Leader planning to fold Lilith Fair

Sarah McLachlan says it's time to raise a family and end Lilith Fair - perhaps forever - after this year.

``We're all well into our 30s now, and we decided we wanted to have babies,'' the 31-year-old singer said Tuesday when announcing the lineup in a 40-date summer tour for the all-woman show.

McLachlan said she has always considered the tour a three-year plan, but she may organize a short Australian tour this winter.

``This will be the last year for a good, long while,'' she said. ``It could be three years. It could be 10 years. It could be forever.''

She hasn't considered letting someone else take over to keep Lilith Fair running.

``I'm a bit of a control freak,'' McLachlan said. ``I think it would be difficult for me to give it up because my name is so associated with it.''

Italian court slaps Pavarotti on taxes

Luciano Pavarotti has lost a court battle and must pay $2.5 million in back taxes, according to Italian news reports Tuesday.

The tenor, said to be one of the world's highest paid entertainers, had argued that his official residence is in the tax haven of Monte Carlo. But an appeals court ruled Monday that he spends most of his time at Modena in Italy, so he must pay the taxes required of an Italian resident.

Pavarotti said no allowances were made for his world travels and contributions to charity. ``If there have been errors, which is always possible,'' he said, ``I remain in good faith. I'm not going to pull back, but my legal representatives will lodge another appeal.'' Pavarotti is among dozens of Italian celebrities and athletes being investigated for tax evasion.

News Lite is compiled by Karen Duffy from Daily News staff and wire reports

CAPTION(S):

5 Photos

PHOTO (1) Favorable Wind?

President Clinton watches his tee shot at the 10th hole at the Army Navy Country Club on Monday.

Associated Press

(2) McLachlan

(3) Pavarotti

(4) Carradine

(5) DiCaprio