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One of items to be negotiated is whether Border Books online store will have to return the publisher's advance on the book. Cohen, who initiated negotiations for Heymann with Random House, indicated to UPI at the time that there were several book border online store interested in republishing ''Poor Little Rich Girl'', presumably with the erroneous passages about Kantor deleted.

But of course we can't solicit publishers until Heymann regains the right to sell the book,'' Cohen had added. ''Mr. Heymann has been very upset. In a sense, his book was killed by the publisher, but perhaps not for all time. We certainly hope not for all time.'' The book had been selected as an alternate choice of the Book of the Month Club in the belief that the life story of the eccentric millionairess who died in 1979 at the age of 67, would be of broad readership interest.

Miss Hutton, an aristocratic blonde beauty with a penchant for writing poetry, was known as the ''million dollar baby'' of the F.W. Woolworth five-and-dime family. She failed to find happiness with seven husbands, including actor Cary Grant and playboy Porfirio Rubirosa, and scores of young lovers, including the late James Dean.

Ultimately, Miss Hutton ran through her $42 million fortune, becoming an alcoholic and drug dependant along the way. When she died she had only $3,500 in her bank accounts, but her attorney, Graham Mattison, was living like a millionaire. Heymann suggests that Mattison enriched himself at Miss Hutton's expense.

Edward E. Fitzgerald, chairman of the Book of the Month Club, announced last month that ''Poor Little Rich Girl'' had been withdrawn as a club selection. Later he said the club would be willing to distribute a corrected version, published by Random House or some other publisher.

''We'd be glad to take another shot at it,'' Fitzgerald said. ''I like the book and my people here like the book. We're still interested.'' Heymann was luckier with his sale of film rights to Lester Persky, producer of the movie versions of ''Hair'' and ''''Equus'', for $100,000 with an escalation arrangement that may pay out $350,000 in time. Persky said he would produce the film even if the book is never republished because ''we never intended to include anything in the film about Dr. Kantor.''

''The recall had to do with one mistaken identity and didn't reflect on the veracity of the book as a whole,'' Persky told UPI. ''So it doesn't effect us except that the controversy has served to expedite the filming. Everybody is very curious about the Hutton story now. I want Jessica Lange to star as Barbara.

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