IN THE SUPREME COURT OF THE STATE OF ALASKA

                       ORDER NO.    1281   

                                  Amending Civil Rules 26, 49,
58, 68, 72.1, 82, and 95, District Court Civil Rules 1 and 4, and
Evidence Rule 702 to implement chapter 26 SLA 1997.

IT IS ORDERED:

    1.   Civil Rule 26 is amended by adding a new paragraph to
read:
         
              (g)  [Applicable to cases filed on or
after August 7, 1997.]  Limited Discovery; Expedited Calendaring. 
In a civil action for personal injury or property damage involving
less than $100,000 in claims, the parties shall limit discovery to
that allowed under District Court Civil Rule 1(a)(1) and shall
avail themselves of the expedited calendaring procedures allowed
under District Court Civil Rule 4.

    2.   The following notes are added at the end of Civil Rule
26:

         Note to SCO 1281:  Paragraph (g) of this rule
was added by ch. 26, sec. 40, SLA 1997.  According to sec. 55 of
the Act,
the amendment to Civil Rule 26 applies "to all causes of action
accruing on or after the effective date of this Act."  The
amendment to Rule 26 adopted by paragraph 1 of this order applies
to all cases filed on or after August 7, 1997.  See paragraph 17 of
this order.  The change is adopted for the sole reason that the
legislature has mandated the amendment.


         Note:  Ch. 26, sec. 10, SLA 1997 repeals and
reenacts AS 09.17.020 concerning punitive damages.  New AS
09.17.020(e) prohibits parties from conducting discovery relevant
to the amount of punitive damages until after the fact finder has
determined that an award of punitive damages is allowed.  This
provision applies to causes of action accruing on or after August
7, 1997.  See ch. 26, sec. 55, SLA 1997.  According to sec. 48 of
the
Act, new AS 09.17.020(e) has the effect of amending Civil Rule 26
by limiting discovery in certain actions.

    3.   The following note is added at the end of Civil Rule 49:

         Note:   Ch. 26, sec. 11, SLA 1997 amends AS
09.17.080(a) concerning allocation of fault.  This provision
applies to causes of action accruing on or after August 7, 1997. 
See ch. 26, sec. 55, SLA 1997. According to sec. 50 of the Act, the
amendments to AS 09.17.080(a) have the effect of amending Civil
Rule 49 by requiring the jury to answer the special interrogatory
listed in AS 09.17.080(a)(2) regarding the percentages of fault to
be allocated among the claimants, defendants, third-party
defendants, persons who have been released from liability, or other
persons who are potentially responsible for the damages.

    4.   The following notes are added at the end of Civil Rule
58:

         Note:  Ch. 26, sec. 10, SLA 1997 repeals and
reenacts AS 09.17.020 concerning punitive
damages.  New AS 09.17.020(j) requires that 50 percent of an award
of punitive damages be deposited in the state general fund.  This
provision applies to causes of action accruing on or after August
7, 1997.  See ch. 26, sec. 55, SLA 1997.  According to sec. 49 of
the
Act, new AS 09.17.020(j) has the effect of amending Civil Rule 58
by requiring the court to order that a certain percentage of an
award of punitive damages be deposited into the general fund.
  
         Note:  Ch. 26, sec. 19, SLA 1997 amends AS
09.30.070 by adding subsection (c) concerning prejudgment interest
on awards of future economic damages, future noneconomic damages,
and punitive damages.  This provision applies to causes of action
accruing on or after August 7, 1997.  See ch. 26, sec. 55, SLA
1997.  According to sec. 53 of the Act, new AS 09.30.070(c) has the
effect of
amending Civil Rule 58 by providing that prejudgment interest may
not be awarded for future economic or noneconomic damages or
punitive damages.

    5.   Civil Rule 68 is amended to read:

         Rule 68.  [Applicable to cases filed before
August 7, 1997.]  Offer of Judgment.

              (a)  At any time more than 10 days before
the trial begins, either the party making a claim or the party
defending against a claim may serve upon the adverse party an offer
to allow judgment to be entered in complete satisfaction of the
claim for the money or property or to the effect specified in the
offer, with costs then accrued. The offer may not be revoked in the
10 day period following service of the offer. If within 10 days
after service of the offer the adverse party serves written notice
that the offer is accepted, either party may then file the offer
and notice of acceptance together with proof of service, and the
clerk shall enter judgment. An offer not accepted within 10 days is
considered withdrawn and evidence of the offer is not admissible
except in a proceeding to determine costs. The fact that an offer
is made but not accepted does not preclude a subsequent offer.

              (b)  If the judgment finally rendered by
the court is not more favorable to the offeree than the offer, the
prejudgment interest accrued up to the date judgment is entered
shall be adjusted as follows:

              (1)  if the offeree is the party making
the claim, the interest rate will be reduced by the amount
specified in AS 09.30.065 and the offeree must pay the costs and
attorney's fees incurred after the making of the offer (as would be
calculated under Civil Rules 79 and 82 if the offeror were the
prevailing party). The offeree may not be awarded costs or
attorney's fees incurred after the making of the offer.

              (2)  if the offeree is the party
defending against the claim, the interest rate will be increased by
the amount specified in AS 09.30.065.

              (c)  When the liability of one party to
another has been determined by verdict or order or judgment, but
the amount or extent of the liability remains to be determined by
further proceedings, the party adjudged liable may make an offer of
judgment, which shall have the same effect as an offer made before
trial if it is served within a reasonable time not less than 10
days prior to the commencement of hearings to determine the amount
or extent of liability.

         Rule 68.  [Applicable to cases filed on or
after August 7, 1997.]  Offer of Judgment.

              (a)  At any time more than 10 days before
the trial begins, either the party making a claim or the party
defending against a claim may serve upon the adverse party an offer
to allow judgment to be entered in complete satisfaction of the
claim for the money or property or to the effect specified in the
offer, with costs then accrued.  The offer may not be revoked in
the 10 day period following service of the offer.  If within 10
days after service of the offer the adverse party serves written
notice that the offer is accepted, either party may then file the
offer and notice of acceptance together with proof of service, and
the clerk shall enter judgment. An offer not accepted within 10
days is considered withdrawn, and evidence of the offer is not
admissible except in a proceeding to determine costs. The fact that
an offer is made but not accepted does not preclude a subsequent
offer.

              (b)  If the judgment finally rendered by
the court is at least 5 percent less favorable to the offeree than
the offer, or, if there are multiple defendants, at least 10
percent less favorable to the offeree than the offer, the offeree,
whether the party making the claim or defending against the claim,
shall pay all costs as allowed under the Civil Rules and shall pay
reasonable actual attorney fees incurred by the offeror from the
date the offer was made as follows:

              (1)  if the offer was served no later
than 60 days after both parties made the disclosures required by
Civil Rule 26, the offeree shall pay 75 percent of the offeror's
reasonable actual attorney fees;

              (2)  if the offer was served more than 60
days after both parties made the disclosures required by Civil Rule
26 but more than 90 days before the trial began, the offeree shall
pay 50 percent of the offeror's reasonable actual attorney fees;

              (3)  if the offer was served 90 days or
less but more than 10 days before the trial began, the offeree
shall pay 30 percent of the offeror's reasonable actual attorney
fees.

              (c)  If an offeror receives costs and
reasonable actual attorney fees under paragraph (b), that offeror
shall be considered the prevailing party for purposes of an award
of attorney fees under Civil Rule 82.  Notwithstanding paragraph
(b), if the amount awarded an offeror for attorney fees under Civil
Rule 82 is greater than a party would receive under paragraph (b),
the offeree shall pay to the offeror attorney fees specified under
Civil Rule 82 and is not required to pay reasonable actual attorney
fees under paragraph (b).  A party who receives attorney fees under
this rule may not also receive attorney fees under Civil Rule 82.

    6.   The following note is added at the end of Civil Rules 68
and 82:

         Note to SCO 1281:  In 1997 the legislature
amended AS 09.30.065 concerning offers of judgment.  According to
ch. 26, sec. 52, SLA 1997, the amendment to AS 09.30.065 has the
effect of amending Civil Rules 68 and 82 by requiring the offeree
to pay costs and reasonable actual attorney fees on a sliding scale
of percentages in certain cases, by eliminating provisions relating
to interest, and by changing provisions relating to attorney fee
awards.  According to sec. 55 of the session law, the amendment to
AS
09.30.065 applies "to all causes of action accruing on or after the
effective date of this Act."  However, the amendments to Civil Rule
68 adopted by paragraph 5 of this order are applicable to all cases
filed on or after August 7, 1997.  See paragraph 17 of this order.

    7.   Civil Rule 72.1 is amended to read:

              * * * *

              (g)  [Applicable to cases filed before
August 7, 1997.]  Discovery. Except by leave of court, no discovery
may be conducted until the report of the panel has been filed or
until 80 days have elapsed from the date the case is at issue,
whichever is first to occur, unless discovery is further stayed for
good cause by order of the court.       

              (g)  [Applicable to cases filed on or
after August 7, 1997.]  Discovery.  Except by leave of court, no
discovery may be conducted until the report of the Panel has been
filed or until 60 days after selection of the Panel, whichever is
first to occur, unless discovery is further stayed for good cause
by order of the court.

    8.   The following note is added at the end of Civil Rule
72.1:

         Note to SCO 1281:  Paragraph (g) of this rule
was amended by ch. 26, sec. 42, SLA 1997.  According to sec. 55 of
the
Act, the amendment to Civil Rule 72.1 applies "to all causes of
action accruing on or after the effective date of this Act."  The
amendment to Rule 72.1 adopted by paragraph 7 of this order applies
to all cases filed on or after August 7, 1997.  See paragraph 17 of
this order.  The change is adopted for the sole reason that the
legislature has mandated the amendment. 

    9.   Civil Rule 95 is amended to read:

              * * * *

              (b)  [Applicable to cases filed before
August 7, 1997.]  In addition to its authority under (a) of this
rule and its power to punish for contempt, a court may, after
reasonable notice and an opportunity to show cause to the contrary,
and after hearing by the court, if requested, impose a fine not to
exceed $1,000.00 against any attorney who practices before it for
failure to comply with these rules or any rules promulgated by the
supreme court.

              (b)  [Applicable to cases filed on or
after August 7, 1997.]  In addition to its authority under (a) of
this rule and its power to punish for contempt, a court may, after
reasonable notice and an opportunity to show cause to the contrary,
and after hearing by the court, if requested, impose a fine not to
exceed $50,000.00 against any attorney who practices before it for
failure to comply with these rules or any rules promulgated by the
supreme court.

    10.  The following note is added at the end of Civil Rule 95:

         Note to SCO 1281:  Paragraph (b) of this rule
was amended by ch. 26, sec. 43, SLA 1997.  According to sec. 55 of
the
Act, the amendment to Civil Rule 95 applies "to all causes of
action accruing on or after the effective date of this Act."  The
amendment to Rule 95 adopted by paragraph 9 of this order applies
to all cases filed on or after August 7, 1997.  See paragraph 17 of
this order.  The change is adopted for the sole reason that the
legislature has mandated the amendment.

    11.  Paragraph (a) of District Court Civil Rule 1 is amended
to read:

              (a)  Scope of Rules.

              (1)  [Applicable to cases filed before
August 7, 1997.]  The procedure in civil actions and proceedings
before district judges and magistrates shall be governed by the
rules governing the procedure in the superior court to the extent
that such rules are applicable.

              (1)  [Applicable to cases filed on or
after August 7, 1997.]  The procedure in civil actions and
proceedings before district judges and magistrates shall be
governed by the rules governing the procedure in the superior court
to the extent such rules are applicable.  However, in a civil
action for personal injury or property damage, unless otherwise
agreed by all parties or permitted by order of the court in
exceptional cases and for good cause shown, discovery shall be
limited to the disclosures required under Civil Rule 26(a) and to
the taking by each party of the deposition of one or more opposing
parties and of one additional person who is not a party.

              (2)  If in any action or proceeding a
magistrate finds it impracticable to proceed or is at a
disadvantage because of the application of any of such rules, the
magistrate may hold the action or proceeding in abeyance, without
prejudice to the rights of the parties, for further action by a
district judge.

              * * * *

    12.  The following note is added at the end of District Court
Civil Rule 1:

         Note to SCO 1281:  Subparagraph (a)(1) of this
rule was amended by ch. 26, sec. 44, SLA 1997.  According to sec.
55 of
the Act, the amendment to District Court Civil Rule 1 applies "to
all causes of action accruing on or after the effective date of
this Act."  The amendment to District Court Civil Rule 1 adopted by
paragraph 11 of this order applies to all cases filed on or after
August 7, 1997.  See paragraph 17 of this order.  The change is
adopted for the sole reason that the legislature has mandated the
amendment. 

    13.  District Court Civil Rule 4 is amended to read:

              (a)  The assignment and calendaring of
cases in the district court shall be as set forth in Civil Rule
40(a), or by such procedures established by the presiding judge as
will cause all cases to be regularly reviewed for placement on the
trial calendar for dismissal for want of prosecution, or other
appropriate disposition.

              (b)  [Applicable to cases filed on or
after August 7, 1997.]  In a civil action for personal injury or
property damage, unless otherwise permitted by order of the court
in exceptional cases and for good cause shown, all parties shall
file a memorandum to set the case for trial, as set out in Civil
Rule 40(b), no later than 180 days after service of the complaint
on all parties to the case.  The memorandum shall contain a
certification that each party has exchanged the information
described in Civil Rule 26(a) and may state their separate
positions if they do not agree concerning information or estimates
to be provided in the memorandum.  After the court satisfies itself
that the information described in Civil Rule 26(a) has been
disclosed, the court shall set the case for trial as soon as
practicable, but no sooner than 30 days after the court makes the
determination regarding disclosure.

    14.  The following note is added at the end of District Court
Civil Rule 4:

         Note to SCO 1281:  Paragraph (b) of District
Court Civil Rule 4 was added by ch. 26, sec. 45, SLA 1997. 
According
to sec. 55 of the Act, the amendment to District Court Civil Rule
4
applies "to all causes of action accruing on or after the effective
date of this Act."  The amendment to District Court Civil Rule 4
adopted by paragraph 13 of this order applies to all cases filed on
or after August 7, 1997.  See paragraph 17 of this order.  The
change is adopted for the sole reason that the legislature has
mandated the amendment. 

    15.  Evidence Rule 702 is amended by adding a new paragraph to
read:

              (c)  [Applicable to cases filed on or
after August 7, 1997.]  Professional Negligence Cases.  In an
action based on professional negligence, a person may not testify
as an expert witness on the issue of the appropriate standard of
care except as provided in AS 09.20.185.

    16.  The following note is added at the end of Evidence Rule
702:

         Note to SCO 1281:  In 1997 the legislature
enacted AS 09.20.185 which prohibits a person from testifying as an
expert in a professional negligence action unless the person has
the qualifications listed in AS 09.20.185(a).  According to ch. 26,
sec. 51, SLA 1997, this statute has the effect of amending Evidence
Rule 702 by requiring certain qualifications for a person
testifying as an expert witness.  According to sec. 55 of the
session
law, AS 09.20.185 applies "to all causes of action accruing on or
after the effective date of this Act."  However, Rule 702(c),
adopted by paragraph 15 of this order, is applicable to all cases
filed on or after August 7, 1997.  See paragraph 17 of this order. 
 

    17.  The rule changes adopted by this order apply to cases
filed on or after August 7, 1997.

    
DATED:         August 7, 1997       

EFFECTIVE DATE:    August 7, 1997   



                                  _______________________________
                                  Chief Justice Matthews


                                  _______________________________
                                  Justice Compton


                                  _______________________________
                                  Justice Eastaugh


                                  _______________________________
                                  Justice Fabe
    

                                  _______________________________
                                  Justice Bryner