IN THE SUPREME COURT OF THE STATE OF ALASKA

                        ORDER NO.     1331   

                                        Amending Alaska Bar Rule
35 concerning fees for legal services.


IT IS ORDERED:

     Alaska Bar Rule 35 is amended to read:

         Rule 35.  Fees for Legal Services; Agreements.

         
              * * * *

              (b)  Written Fee Agreement. The basis or
rate of the fee to be charged, including any fee of retainer or
initial deposit, exceeding $500 shall be communicated to that client
in a written fee agreement, before commencing the representation or
within a reasonable time thereafter.  This written fee agreement
shall include the disclosure required under Alaska Rule of
Professional Conduct 1.4(c).  In a case involving litigation, the
attorney shall notify the client in the written fee agreement of any
costs, fees or expenses for which the client may be liable if the
client is not the prevailing party.  In the absence of a written fee
agreement, the attorney must present clear and convincing evidence
that the basis or rate of fee exceeded the amount alleged by the
client.

              (c) Contingent Fees.  A fee may be
contingent on the outcome of the matter for which the service is
rendered, except in a matter in which a contingent fee is prohibited
by Section (d) of this rule, or by other law or court rules or
decisions.  A contingent fee agreement will be in writing and will
include the disclosure required under Alaska Rule of Professional
Conduct 1.4(c) and state the method by which the fee is to be
determined, including:


              * * * *


DATED:         July 9, 1998          

EFFECTIVE DATE:   January 15, 1999   



                                   ______________________________
                                   Chief Justice Matthews


                                   ______________________________
                                   Justice Compton


                                   ______________________________
                                   Justice Eastaugh


                                   ______________________________
                                   Justice Fabe
     

                                   ______________________________
                                   Justice Bryner