IN THE SUPREME COURT OF THE STATE OF ALASKA

                         ORDER NO. 1249

                                   Amending Alaska Bar Rule 40
                                   concerning arbitration of fee
                                   disputes.

IT IS ORDERED:

     1.   Paragraph (d) of Alaska Bar Rule 40 is amended to read as
follows:

               (d)  Respondent Answer to Petition
          Required.  Respondent shall respond to each of
          the allegations in the petition within 20 days
          of receipt of the notification that the
          petition has been accepted by Bar Counsel.
          Supporting documents may be submitted at that
          time.

     2.   Paragraph (e) of Alaska Bar Rule 40 is amended to read as
follows:

               (e)  Assignment to Arbitration, Dismissal
          for Failure to Proceed with Arbitration.

               (1)  If, at the end of the ten-day
          period, Bar Counsel has not been informed that
          the matter has been settled, in accordance
          with Rule 37(c) or (e), (s)he will select and
          assign an arbitrator or arbitration panel from
          the members of the appropriate area division
          to consider the matter.

               (2)  Bar counsel will contact the
          petitioner, the respondent, and the
          arbitrator(s) to determine their availability
          for hearing.  If the petitioner fails to
          provide scheduling information within 30 days
          of the date of a written request, Bar Counsel
          shall transfer the matter to inactive status
          and notify the parties in writing that the
          petition will be dismissed unless the
          petitioner provides the information within 30
          days of the date of the notice.  If the
          petitioner fails to provide the information,
          Bar Counsel shall dismiss the petition without
          prejudice to refile subject to the
          jurisdictional limitations of Rule 34(c).  Bar
          Counsel's initial written request to a
          petitioner for scheduling information must
          advise the petitioner that failure to respond
          may result in dismissal of the petition.




DATED:     May 2, 1996   

EFFECTIVE DATE:    July 15, 1996   


                                   _______________________________
                                   Chief Justice Compton


                                   _______________________________
                                   Justice Rabinowitz


                                   _______________________________
                                   Justice Matthews


                                   _______________________________
                                   Justice Eastaugh
     

                                   _______________________________
                                   Justice Fabe