U.S. Securities and Exchange Commission
                             Washington D.C.  20549

                                    Form 10-KSB

[X]  Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange 
Act of 1934.
For the fiscal year ended December 31, 1997  Commission File Number 333-16031

[  ] Transition Report Pursuant to Section 13 or 15(d) of the Securities 
Exchange Act of 1934

                         Litigation Economics, Inc.
           (Name of small business issuer as specified in its charter)

                  Nevada                                       86-0793960
     (State or other jurisdiction of                        (I.R.S. employer
     incorporation or organization)                        identification No.)

                 227 South Ninth Avenue, Pocatello, ID  83201
                  (Address of principal executive offices)

Registrant's telephone number, including area code:  208-233-8001

Securities registered pursuant to Section 12(b) of the Exchange Act:  None

Securities registered pursuant to Section 12(g) of the Exchange Act:  None

Check whether the Issuer (1) has filed all reports required to be filed by 
Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for 
such shorter period that the registrant was required to file such reports), 
and (2) has been subject to such filing requirements for the past 90 days.
Yes    X     No _____

Check if no disclosure of delinquent filers in response to Item 405 of 
Regulation S-B is contained in this form, and no disclosure will be contained, 
to the best of the Issuer's knowledge, in the definitive proxy or information 
statements incorporated by reference in Part III of this form 10-KSB or any 
amendment to this Form 10-KSB.  [   ]

The Issuer's revenues for its most recent fiscal year.     $19,534

The number of shares outstanding of the Issuer's common stock at December 31, 
1997:  1,600,000

Transitional Small Business Disclosure Format:
Yes _____  No    X   -
<PAGE>

                                   PART I

Item 1.     Description of Business

     (a)  Business Development.

     The Company was incorporated in the State of Nevada on April 27, 1995, 
under the name of Landmark Leasing, Corp.  The Company planned on operating as 
a leasing company of residential property, commercial property, vehicles, and 
related activities.  The Company has discontinued pursuing any of these 
activities and accordingly remains a development stage company.  The Company 
changed its name to Litigation Economics, Inc. on December 22, 1996.  On 
December 22, 1996, the Company acquired all of the outstanding stock of GEC, 
Inc., (the Subsidiary) for 1,000,000 shares of the Company's common stock 
valued at $.001 per share or $1,000 which represented the capital contributed 
to the subsidiary.  The acquisition of the Subsidiary was recorded as a 
recapitalization of the Subsidiary, whereby the acquired company is treated as 
the surviving entity for accounting purposes.  The subsidiary was formed on 
July 31, 1996 in the State of Idaho.  The Subsidiary is engaged in the field 
of economic advising and consulting and commenced principal business 
operations as of June 2, 1997.  Accordingly, the subsidiary is also considered 
a development stage company.  Pursuant to a Registration Statement on Form 
SB-2, Commission File No. 333-16031, which became effective April 21, 1997, 
the Company sold 100,000 shares of its common stock to the public at $1.00 per 
share and raised gross proceeds of $100,000.

     (b) Business of Company.

     General

     The Company is engaged in the business of providing economic related 
litigation consulting services to litigation attorneys throughout the 
country.  The Company commenced full-scale operations in June 1997 when it 
began preparation for the publication of the first issue of the Company's 
newsletter, which was subsequently mailed in July.  During 1997, the Company 
leased and improved properties, purchased computer, printing and other 
equipment, and formed strategic referring relationships with other litigation 
consultants to provide attorneys a place to retain the variety of economic 
consulting services they may need to successfully litigate certain cases.  
Specifically, the Company provides economic, financial, statistical, and other 
types of analyses necessary in litigation that involves a dispute regarding 
economic damages.  Furthermore, the Company is marketing PreVal™, a new 
economic consulting service, based on the Company's proprietary software, 
provided to attorneys in the settlement-phase of litigation (see Properties 
section).  The Company's target market consists of approximately 20,000 
litigation attorneys specializing in personal injury, employment law, medical 
malpractice, and other related areas in the market areas surrounding the 
following locations:  Idaho, Chicago, Salt Lake City, San Francisco, Portland 
and Phoenix.

<PAGE>
     
     The Industry

     There are over 800,000 attorneys throughout the United States.  Over 
125,000 of these attorneys specialize in litigation and over 50,000 specialize 
in wrongful job termination and/or personal injury related litigation.  To 
successfully litigate such cases, attorneys often retain the expertise of 
economists, statisticians and other financial experts.  Furthermore, recent 
changes in laws ("tort reform") have served to limit the recoverability of 
non-economic damages.  Attorneys are now compelled to expend more time and 
effort in proving and examining economic damages.  Management believes that 
this "tort reform" has elevated the importance of the economist, and other 
experts related to the examination of economic damages, as consultants in the 
litigation process.  In addition to traditional litigation consulting, 
management believes that there is demand among personal injury attorneys for a 
low-cost, preliminary analysis of lost wages.

     Government Regulation

     Over the last decade, state and federal legislatures have begun imposing 
legal limitations on the recovery of certain types of non-economic damages.  
To date, the changes to the legal system proposed as a part of the "tort 
reform" movement have been limited to the recovery of nonpecuniary damages 
(those not capable of monetary calculation).  While the Company's services do 
not fall under the limitations of the current tort reform movement, there is 
no guarantee that the legislative structure of tort reform will not change.  
If legislation were passed placing caps on pecuniary damages, such legislation 
may materially adversely affect the Company.

     Competition and Markets

     Within the Company's market area, as well as throughout the entire United 
States, there are numerous competitors, ranging from a host of sole 
practitioners to a much smaller number of large companies.  Management 
believes that the Company appeals to litigation attorneys specializing in 
wrongful job termination and personal injury related litigation who need a 
variety of economic related litigation consulting services.

The market for litigation support services is very competitive and is composed 
of different types of specialty consulting companies.  The most common type of 
competitor are the sole practitioners who concentrate on servicing small to 
midsize law firms handling wrongful job termination and/or personal injury 
related cases.  These consulting companies are frequently operated by college 
professors looking to supplement their teaching income.  Service and quality 
are not a major focus, rather answering the phone when in their office and 
fitting their consulting practice around their academic schedule is the 
standard approach.  The larger companies usually have a dedicated litigation 
consulting group and tend to focus on larger types of business litigation that 
typically have voluminous documents to manage.  These larger cases often require
<PAGE>

litigation support services related to the handling of documents and 
usually require a larger staff of consultants.  There is cross-specialization 
among both types of consulting firms, and the larger consulting firms have 
begun offering a larger variety of services to attorneys in an effort to 
satisfy more of the attorney's litigation support needs.

     Management believes there is an opportunity for a top-quality consulting 
firm that provides a large variety of litigation support services, including 
PreVal-(trademarked), to small and mid-size law firms with service and quality 
as a major focus.

     Advertising and Marketing Strategy

     The Company markets its services through a variety of targeted marketing 
programs.  The Company's main marketing strategy is the Company's newsletter, 
The Economic Counselor.  The newsletter provides the Company's potential 
clients with useful law and economic information while marketing the Company's 
services and providing potential clients with an opportunity to request 
additional information on the Company's services.  In 1997, the Company 
received over 1,000 responses to the newsletter.  The Company has an Internet 
website (http:\\www.gec-inc.com) that provides information on the Company's 
services and allows prospective clients to email the Company for additional 
information.  The Company has been able to market its services through word of 
mouth via strategic relationships with other litigation consulting companies 
providing non-economic services to the Company's targeted market.  Management 
believes that with time, its relationships with these mature companies could 
be a fruitful source of businesses.  The Company has access to over 100,000 
attorney email addresses and is in the process of investigating the 
possibilities of electronic mail advertising.  Additionally, the Company has 
investigated advertising in various regional and/or national legal 
publications.  The Company intends to test market this form of advertising.  
The Company also anticipates utilizing the various lawyer association 
meetings, forums, and conventions by dispensing information and educating 
potential clients about the Company's services and business practices.

     (a)  The Company Newsletter

     The Economic Counselor is a one-page newsletter consisting of three 
articles, a one-cell comic, and a section for requesting additional 
information on the company's services.  In July 1997, the Company mailed the 
first issue of its quarterly newsletter, The Economic Counselor, to 
approximately 21,000 attorneys.  The Economic Counselor is a one-page 
newsletter with articles written by the Company and consultants at the 
affiliated companies mentioned above.  The Economic Counselor is also the host 
of a one-cell, law and economics comic illustrated by Jed Clarke, for which 
the Company pays $100 per illustration.  In October, the Company mailed the 
second issue of The Economic Counselor to approximately 16,000 attorneys, a 
target market reduction of 5,000 attorneys.  This reduction was primarily due 
to a test-marketing shift from southern California and Colorado to northern 
California and Oregon.  As the Company continues to test-market and gauge 
<PAGE>
responses to the newsletter across various geographical locations, it is 
anticipated that the size of the target market will continue to decrease and
become more focused.  The newsletter provides attorneys a place to fax in a 
request for additional information on the Company's services.

     To reduce costs associated with the printing and distribution of the 
newsletter, the Company has begun soliciting authorization from the attorneys 
on the Company's newsletter mailing list to fax the newsletter instead of 
mailing it.  The initial database of attorneys used to generate a mailing list 
was retrieved from the Martindale-Hubbell directory of attorneys in the United 
States.  As of December 31, 1997, approximately 1,200 firms (representing 
approximately 2,000 attorneys) have granted the Company permission to fax the 
newsletter.  Converting The Economic Counselor to a faxed newsletter will save 
the Company a substantial amount of labor and material expense presently 
incurred by mailing the newsletter.  The first fax-based version of the 
newsletter will be distributed in January 1998.

     While management feels that response to and interest in the newsletter has 
been strong (e.g., over 1,500 responses to the first two issues of the 
newsletter), actual business received from the newsletter has been slow.  As 
of December 31, 1997, the Company had received contracts for eighteen 
PreVal-(trademarked) reports and four other consulting engagements with 
associated revenues of $19,051.

     Contracts

     In 1997, the Company received contracts for eighteen PreVal-(trademarked) 
reports and four other consulting engagements with associated revenues of 
$19,051.  The PreVal-(trademarked) contracts were performed as a part of 
personal injury, wrongful death and employment termination litigation.  Signs of
a high degree of client satisfaction include multiple contracts with the same 
client as wells the expansion of the preliminary report service into a full 
report of economic loss on the same case with pending deposition and/or trial 
testimony.  While the Company's economic consulting services have been 
provided to both plaintiff's and defendant's counsel, only plaintiff's counsel 
has used the PreVal-(trademarked) service.

     Strategic Relationships

     The Company has formed business referring relationships with other 
consulting companies that serve the same base of attorneys identified as 
potential clients by the Company.  Specifically, the Company has formed a 
referring relationship with Vocational Diagnostics (a vocational and life care 
planning company in Phoenix, Arizona), Mirfak Associates (a vocational and 
life care planning company in Lafayette, California), Ellis & Associates (a 
vocational and life care planning company in Chicago, Illinois), Intermountain 
Vocational and VocConsult Services (vocational and life care planning 
companies in Boise, Idaho), BCRC (a vocational and life care planning company 
in Missoula, Montana), and The Apollo Group (a structured 
<PAGE>

settlement company in Chicago, Illinois).  These companies contribute articles 
to the Company's newsletter and refer their existing and potential clients to
the Company for economic consulting services.  There are no written referring 
contracts between the Company and the companies mentioned above.  Furthermore, 
the relationships with these companies are based on anticipated cross-referrals 
and hence no referral fees or other compensation has or will be paid.

     Employees

     One June 2, 1997, the Company commenced business operations and hired 
Paul V. Finlayson, age 26, as the Company's office manager.  As an office 
manager, Mr. Finlayson's primary duties were creating and maintaining client 
and potential client databases, managing the production of the Company 
newsletter, and managing the responses to the Company newsletter.  The Company 
paid Mr. Finlayson a salary of $2,500 a month.  Mr. Finlayson worked full-time 
for the Company from June through November.  By the end of November, the 
Company completed the conversion of its newsletter from a hard-copy/mailed 
format to an electronic/faxed format.  This conversion eliminated the need for 
a substantial amount of labor.  Mr. Finalyson worked full-time for the Company 
on an at-will basis and the Company terminated its employment relationship 
with Mr. Finlayson at the end of November.  The Company will hire part-time 
and/or full-time workers as needed in 1998.

     Facilities

     The Company's principal executive offices are located at 227 South Ninth 
Avenue, Pocatello, Idaho  83201 and its telephone number is 208-233-8001.

     Improvements on properties include the expansion and finishing of a 
portion of the home office of Cornelius A. Hofman II (227 South Ninth Avenue, 
Pocatello, 0Idaho  83201), the President and CEO of the Company, in order to 
accommodate the administration of the Company's business.

     The Company uses the home office of Cornelius A. Hofman II (227 South 
Ninth Avenue, Pocatello, Idaho  83201) in Pocatello, Idaho, as its executive 
or administrative office for the time being until the Company's business 
requires more extensive administrative facilities (see Item 12: Certain 
Relationship and Related Transactions).

     During the 1997 fiscal year, the Company entered into lease agreements 
with the following businesses: Barrister Executive Suites in Los Angeles, 
California; Omni Executive Suites (now called Alliance Business Centers) in 
Phoenix, Arizona; Mirfak Associates in Lafayette, California; Executive Suites 
and Business Services in Denver, Colorado; The Mail Center of Chicago in 
Chicago, Illinois; HQ Business Centers in Salt Lake City, Utah; and HQ 
Business Centers in Portland, Oregon.  All of these leases provide the Company 
with a local address in the cities listed (which is an important part of the 
Company's marketing strategy) and 
<PAGE>

all were or are month by month leases for shared office space, mail services, 
secretarial services and/or conference room services.  The Company has 
discontinued its leases with Barrister Executive Suites in Los Angeles and 
Executive Suites and Business Services in Denver.

     The Company operates out of six locations.

     227 South Ninth Avenue        601 South LaSalle Street
     Pocatello, Idaho  83201       Suite 628
     Tel:  208-233-8001            Chicago, IL  60605
     No monthly charge             Tel:  312-922-8001
     (see Item 12)                 $60/year

     2390 East Camelback Road      1001 SW Fifth Avenue
     Suite 300                     Suite 1100
     Phoenix, AZ  85016            Portland, OR  97204
     Tel:  602-951-8001            Tel:  503-220-0996
     $110/month                    $125/month

     201 Lafayette Circle          201 South Main 
     Suite 100                     Suite 900
     Lafayette, CA  94549          Salt Lake City, UT  84111
     Tel:  510-283-8019            Tel:  801-355-8001
     $100/month                    $47/month

Item 2.     Properties

     PreVal-(trademarked) is the Company's proprietary software that the Company
uses to assist in the valuation of lost wages, benefits and household services 
in personal injury, wrongful death, and employment termination litigation.  
Using the PreVal-(trademarked) software, the Company is able to provide a new 
economic consulting service to attorneys in the settlement-phase of 
litigation.  Presently, attorneys hire economists to assess the economic 
damages in a case and to provide a report spelling out their opinion regarding 
such damages.  Attorneys usually delay the hiring of economists because (1) 
the economist's report typically costs $2,000 to $4,000 per report; (2) they 
think they can satisfactorily settle the case without substantiating economic 
losses; and (3) the current litigation paradigm places economists as experts 
only to be used at trial.  PreVal™ exploits the power of computers and 
uses its proprietary software developed by Cornelius A. Hofman II (President 
and CEO of the Company) in the assessment of economic damages in lawsuits 
involving wage loss issues.  For $500, the service provides attorneys with a 
report that itemizes and explains the economic losses in a case.  Ninety-five 
percent of cases in litigation settle, and PreVal-(trademarked) is a 
settlement-phase service.
<PAGE>

Item 3.     Legal Proceedings

     The Company is not a party to any material pending legal proceedings and, 
to the best of its knowledge, no action by or against the Company has been 
threatened.

Item 4.     Submission of Matters to a Vote of Security Holders

     No matters were submitted to a vote of the Company's shareholders during 
the fourth quarter of the fiscal year ending December 31, 1997.

Item 5.     Market for Common Equity and Related Stockholder Matters

     (a)  Market Information

     The Company's Common Stock has not been listed on any bulletin board or 
exchange and there is currently no public trading market for the Company's 
common stock.

     (b)  Holders

     As of December 31, 1997, there were approximately 60 record holders of the 
Company's Common Stock.  No other class of stock has been issued at this time.

     (c)  Dividends

     The Company has not previously paid any cash dividends on common stock and 
does not anticipate or contemplate paying dividends on common stock in the 
foreseeable future.  It is the present intention of management to utilize all 
available funds for the development of the Company's business.  The only 
restrictions that limit the ability to pay dividends on common equity or that 
are likely to do so in the future, are those restrictions imposed by law.  
Under Nevada corporate law, no dividends or other distributions may be made 
which would render the Company insolvent or reduce assets to less than the sum 
of its liabilities plus the amount needed to satisfy any outstanding 
liquidation preferences.
<PAGE>

                                PART II

Item 6.     Management's Discussion and Analysis of Financial Condition and 
            Results of Operations

      The following discussion and analysis should be read in conjunction with 
the Company's financial statements and the notes associated with them 
contained elsewhere in this report.

      Liquidity and Capital Resources.

     The Company was incorporated on April 27, 1995.  Although the Company was 
incorporated in 1995, it was inactive from inception until 1997.  The Company 
was activated to raise funds from the sale of its securities and commence 
business operations.  In connection with these activities, on December 22, 
1996, the Company acquired all of the outstanding stock of GEC, Inc., (the 
Subsidiary) for 1,000,000 shares of the Company's common stock valued at $.001 
per share or $1,000 which represented the capital contributed to the 
subsidiary.  The subsidiary was formed on July 31, 1996 in the State of 
Idaho.  The Company also filed a Form SB-2 with the Securities and Exchange 
Commission, Commission File No. 333-16031, which became effective April 21, 
1997.  Commencing on such date, the Company sold 100,000 shares of its common 
stock to the public at $1.00 per share and raised gross proceeds of $100,000.  
Net proceeds after offering costs amounted to $78,331.

     As of December 31, 1997, the Company has $10,434 in cash.

     The Company has no significant assets or commitments with respect to 
sources of capital.  The Company also has no significant commitments with 
respect to capital usage.  Management believes that revenues received from new 
contracts will be sufficient to fund ongoing operations, but no assurance of 
this can be given at this time.  If the Company is unable to generate 
sufficient revenues to finance ongoing operations, the Company will seek to 
reduce expenses by consolidating offices and tightening the targeted market 
and may also have to seek additional financing.  The Company presently has no 
commitment or arrangements for additional financing from any source.
<PAGE>

     Results of Operations.

                           Fiscal Year Ended December 31, 1997
                                        Compared to
                           Fiscal Year Ended December 31, 1996

     Operating revenue for fiscal year 1997 was $19,534, an increase of 
$19,534 over revenue during fiscal 1996.  This increase was due to the fact 
that the Company commenced operations on June 2, 1997 and received contracts 
to perform economic consulting services.

     Operating expenses for fiscal year 1997 was $86,951, (445% of revenue), 
an increase of $81,182or 1,407% over operating expense of $5,769 for fiscal 
1996.  As explained previously, the increase was primarily generated from the 
Company beginning full-scale operation in June 1997 while it was essentially 
inactive in 1996.

     Payroll expenses, which are a part of the total operating expenses, for 
fiscal year 1997 were $16,038 (82% of revenue), an increase of $16,038 over 
payroll expenses during fiscal 1996.  This increase was due to the fact that 
the Company was essentially inactive and had no employees in 1996, and that 
the Company hired a full-time employee when it began full-scale operations in 
June 1997.  As explained above in the Employees section of Item 1, the company 
has terminated the relationship with its full-time employee, and since 
December 1997 the Company has relied on part-time employment, which has 
substantially reduced payroll expenses.

     Legal and accounting fees from fiscal year 1997 were $19,616.  The 
magnitude of these fees are primarily a result of the registration of a public 
offering of the Company's securities (effective April 21, 1997) and the 
initial public offering of 100,000 shares of the Company's common stock that 
was closed on July 8, 1997.  The bulk of these fees in 1997 are, therefore, 
nonrecurring.

     General and administrative costs for fiscal year 1997 were $83,204 (426% 
of revenue) an increase of $77,435 or 1,342% from the 1996 fiscal year general 
and administrative costs of $5,769.  As explained earlier, the increase is a 
direct result of the Company beginning full-scale operations in June 1997.

Item 7.       Financial Statements.

     See attached Financial Statements and Schedules.

Item 8.     Changes in and Disagreements with Accountants on Accounting and 
            Financial Disclosure.

     None.
<PAGE>
                                     PART III

Item 9.     Directors, Executive Officers, Promoters and Control Persons; 
            Compliance with Section 16(a) of the Exchange Act.

     (a)  Identify Directors and Executive Officers

     The following table sets forth the directors and executive officers of 
the Company, their ages, and all offices and positions with the Company.  Each 
director is elected for a period of one year and thereafter serves until his 
successor is duly elected by the stockholders and qualifies.  Officers and 
other employees serve at the will of the Board of Direc

<TABLE>
<CAPTION>
                          
                              Term Served as
Name of Director        Age   as Director/Officer      Positions with Company
<S>                     <C>   <C>                      <C>
Cornelius A Hofman II    30   Since August 1996        CEO, President and 
                                                       Chairman

Stacey A.Hofman          28   Since August 1996        Secretary/Treasurer and 
                                                       Director
Cornelius A. Hofman      65   Since August 1996        Director

Edward B. Schow          30   From August 1996         Vice-President and 
                              to July 1997             Director
</TABLE>

     Cornelius A. Hofman II assumed the role of CEO, President, and Chairman 
of the Board of Directors of the Company on August 22, 1996.  As such, his 
duties include primary responsibility  for the financing, marketing, computer 
systems, leasing, and general management of the Company.  He has experience 
working for General Economic Consulting, Inc., an economic consulting company 
providing economic valuation services to governments, businesses, and 
attorneys.  Since June 1995, he has been working as an economist for General 
Economic Consulting, Inc.  From 1994 to 1995 he was an Economic Consultant and 
Manager at Crowe Chizek & Company in South Bend, Indiana.  From 1992 to 1994 
he attended the Graduate School of Business at the University of Chicago where 
he earned an MBA in Economics.  Mr. Hofman received a B.A. in Asian Studies 
from Cornell University and an M.A. in Japanese Studies from the University of 
Pennsylvania.  After graduating from Cornell and while attending the 
University of Pennsylvania and the University of Chicago, Mr. Hofman worked as 
an Analyst on a full-time and part-time basis for General Economic Consulting, 
Inc.

     Stacey A. Hofman assumed the role of Secretary/Treasurer and a Director 
of the Company on August 22, 1996.  As such her duties include handling 
receipts and deposits and managing the books.  Mrs. Hofman attended Brigham 
Young University from 1987 to 1989.  She worked as a dental assistant in New 
York from 1989 to 1991.  For the past two years, Mrs. Hofman has 
<PAGE>

performed various book keeping and administrative functions for General 
Economic Consulting, Inc.

     Cornelius A. Hofman assumed the role of Director of the Company on August 
22, 1996.  As such his duties include providing consulting advice to the 
Company's management and other employees.  Mr. Hofman was Chairman of the 
Department of Economics at Idaho State University from 1974 until his 
retirement in 1997.  He received his Ph.D. in Economics from the University of 
Utah and from 1960 until his retirement in 1997, he taught economics at the 
university level.  In 1970, he founded General Economic Consulting, Inc., and 
has served as the President and/or CEO from its inception to the present time.

     (1) Edward B. Schow was the Vice-president and a Director of the Company 
from August 22, 1996 until he resigned in July 23, 1997.  Edward Schow is no 
longer an officer or director of the Company.  Since June 1994, Mr. Schow has 
been working at First Security Bank were he currently serves as a Manager.  
From September 1993 to June 1994, he worked at Fidelity Investments.  Mr. 
Schow received his bachelor's degree in Finance from Idaho State University.

     Directorships

     (b)  Identify Significant Employees

     None

     (c)  Family Relationships

     Cornelius A. Hofman II is President, CEO and Chairman of the Company.  
Stacey A. Hofman is Secretary/Treasurer and a Director of the Company.  
Cornelius A. Hofman is a Director of the Company.  Cornelius A. Hofman II and 
Stacey Hofman are husband and wife, and Cornelius A. Hofman and Cornelius A. 
Hofman II are father and son.
  
     (d)  Involvement in Certain Legal Proceedings

     None

     Compliance with Section 16(a) of the Exchange Act

     The issuer is not subject to the provisions of Section 16(a)

 Item 10.     Executive Compensation

     (a) and (b)  General and Summary Compensation Table
<PAGE>

     The Company has not paid compensation to any of its officers or 
directors.

     (c) and (d)  Stock Option and Stock Appreciation Right Plans

     The Board of Directors adopted the Litigation Economics, Inc., 1996 Stock 
Option Plan ("1996 Plan") allowing the Company to offer its key employees, 
officers, directors, consultants and sales representatives, an opportunity to 
acquire a proprietary interest in the Company.  The various types of incentive 
awards which may by provided under the Stock Option Plan will enable the 
Company to respond to changes in compensation practices, tax laws, accounting 
regulations and the size and diversity of its business.  The total number of 
shares reserved and available for distribution under the 1996 Plan is 
400,000.  The 1996 Plan is administered by the Board of Directors which 
determines the persons to whom awards will be granted, the number of awards to 
be granted and the specific terms of each grant, including the vesting 
thereof, subject to the provision of the 1996 Plan.

     In connection with the stock options, the exercise price of each grant is 
to be determined by the Board of Directors at the time of the grant and may 
not be less than 100% of the fair 
market value of the Common Stock on the date of the grant or 110% of the fair 
market value of the Common Stock on the date of the grant for 10% 
Stockholders.  The aggregate fair market value of Stock (determined at the 
time of grant of the Option) with respect to which Incentive Stock Options 
become exercisable by a Holder during any calendar year shall not exceed 
$100,000.

     The Option holders will not be protected against dilution if the Company 
should issue additional shares of common stock in the future.  Neither the 
Options, nor the shares underlying the Options have preemptive rights.

          As of December 31, 1997, the Company has not issued any Options 
pursuant to the Plan.

     (e)  Long-term Incentive Plan

     None
     
     (f)  Compensation of Directors

     None

     (g) Employment Contracts and Termination of Employment and 
         Change-in-Control Arrangements

     None
<PAGE>

     (h)  Report on Repricing of Options/SARs

     None

Item 11.     (a) and (b) Security Ownership of Certain Beneficial Owners and 
             Management

     The following table sets forth certain information with respect to the 
current beneficial ownership of the Company's common stock as of December 31, 
1997, of each person known to the Company to be the beneficial owner of more 
than five percent (5%) of said securities, each director of the Company, and 
all directors and executive officers of the Company as a group:


<TABLE>
<CAPTION>
                       Title of    Amount and Nature of   Percent   Stock
Name and Address       Class       Beneficial Ownership   of Class  Options
<S>                    <C>         <C>                    <C>       <C>  

Corelius A Hofman II   Common      497,000                31%       0 
227 South Ninth Ave.
Pocatello, ID 83201

Stacey A. Hofman       Common       500,000               31%       0
227 South Ninth Ave.
Pocatello, ID 83201

Cornelius A. Hofman    Common       100                    0%       0
216 South 16th Ave.
Pocatello, ID 83201

All officers and       Common       997,100                62%      0
directors as a group 
(3 persons)

David N. Nemelka       Common       500,000                31%      0
897 S. Artistic Cr.
Springville, UT 84663
</TABLE>

     (1) The nature of the beneficial ownership for all the shares is sole 
         voting and investment power.


Item 12.     Certain Relationships and Related Transactions.

     The Company has entered into certain transactions with officers, 
directors or affiliates of the Company which include the following:
<PAGE>

     Since December 22, 1996, the Company has used as its principal executive 
office, the home office of Cornelius A. Hofman II, President, (227 South Ninth 
Avenue, Pocatello, Idaho  83201) in Pocatello, Idaho.  The Company paid 
approximately $2,100 to improve Mr. Hofman's home office in exchange for use 
of the office space until the Company's business requires more extensive 
administrative facilities.  There is no formal written agreement for the use 
of such facilities, and no assurance that such facilities will be available to 
the Company on such a basis for any specific length of time.

     In addition, the Company has subcontracted some consulting work to 
General Economic Consulting, Inc., a company controlled by Cornelius A. 
Hofman, a director of the Company.  General Economic Consulting, Inc. provides 
consulting services similar to the Company's, and in a case where one of the 
Company's client's required expert testimony (that could not be provided by 
the Company) as a follow-up service to consulting services that the Company 
had previously provided, the Company referred the work to General Economic 
Consulting, Inc.  As of December 31, 1997, General Economic Consulting, Inc. 
has received $2,544 in fees from said referral of business.  Management of the 
Company anticipates that this situation will occur with greater frequency as 
the Company's revenues increase and is in the process of implementing a 
referral fee policy to apply when such occasions arise.  Cornelius A. Hofman 
II, President and CEO of the Company, is also a director of General Economic 
Consulting, Inc.

<PAGE>

                                  PART IV

Item 13.     Exhibits and Reports on Form 8-K.

     (a)  Exhibits


<TABLE>
<CAPTION>

               SEC Exhibit
Exhibit        Reference     
Number         Number        Title of Document     Location  

<S>            <C>           <C>                   <C>

3.01           3(i)          Articles of Inc.      Incorportated by
                                                   Reference* 

3.02           3(ii)         By-Laws               Incorportated by
                                                   Reference*

27             27            Financial Data        Attached
                             Schedule

99             99            1996 Stock Option     Incorporated by
                             Plan                  Reference*

</TABLE>
 * Incorporated by reference from the registrants registration statement on 
   Form SB-2, as amended and filed with the Commission, SEC file number 
   333-16031.

     (b)  Reports on Form 8-K

     No Form 8-Ks were required to be filed by the Company for the fourth 
     quarter.

                                   SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the 
registrant has duly caused this Report to be signed on its behalf by 
the undersigned, thereunto duly authorized.

                                   LITIGATION ECONOMICS, INC.

DATE:  2/26/98                     By /s/ Cornelius A. Hofman
                                   ---------------------------
                                   Cornelius A. Hofman
                                   Director and President
<PAGE>
                              LITIGATION ECONOMICS, INC.
                            [A Development Stage Company]

                                 FINANCIAL STATEMENTS

                                  DECEMBER 31, 1997

JONES, JENSEN & COMPANY, LLC
(letterhead)

                           INDEPENDENT AUDITORS' REPORT

The Board of Directors
Litigation Economics, Inc. and Subsidiary
(A Development Stage Company)
Pocatello, Idaho 

We have audited the accompanying consolidated balance sheet of Litigation 
Economics, Inc. and Subsidiary (a development stage company) as of December 
31, 1997, and the related consolidated statements of operations, stockholders' 
equity and cash flows for the year ended December 31, 1997 and from inception 
on July 31, 1996 through December 31, 1997.  These consolidated financial 
statements are the responsibility of the Company's management.  Our 
responsibility is to express an opinion on these consolidated financial 
statements based on our audits.

We conducted our audits in accordance with generally accepted auditing 
standards.  Those standards require that we plan and perform the audits to 
obtain reasonable assurance about whether the consolidated financial 
statements are free of material misstatement.  An audit includes examining, on 
a test basis, evidence supporting the amounts and disclosures in the 
consolidated financial statements.  An audit also includes assessing the 
accounting principles used and significant estimates made by management, as 
well as evaluating the overall consolidated financial statement presentation.  
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above 
present fairly, in all material respects, the financial position of Litigation 
Economics, Inc. and Subsidiary  (a development stage company) as of December 
31, 1997 and the results of their operations and their cash flows for the year 
ended December 31, 1997 and from inception on July 31, 1996 through December 
31, 1997 in conformity with generally accepted accounting principles.

The accompanying consolidated financial statements have been prepared assuming 
that the Company will continue as a going concern.  As discussed in Note 4 to 
the consolidated financial statements, the Company is a development stage 
company with no significant operating results to date, which raises 
substantial doubt about its ability to continue as a going concern.  
Management's plans in regard to these matters are also described in the Note 
4.  The consolidated financial statements do not include any adjustments that 
might result from the outcome of this uncertainty.



Jones, Jensen & Company
February 12, 1998
<PAGE>

                   LITIGATION ECONOMICS, INC. AND SUBSIDIARY
                          (A Development Stage Company)
                             Consolidated Balance Sheet

                                     ASSETS 

                                                                 December 31,
                                                                   1997        
CURRENT ASSETS

Cash                                                           $     10,434
Accounts receivable                                                       8

         Total Current Assets                                        10,442
     
PROPERTY AND EQUIPMENT (NET) (Note 2)                                        
                                                                     24,680

OTHER ASSETS

Deposits                                                                125

         Total Other Assets                                             125

         TOTAL ASSETS                                          $     35,247

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable                                                $     2,510
Unearned revenue                                                        388

         Total Liabilities                                            2,898     

STOCKHOLDERS' EQUITY

Preferred stock; authorized 5,000,000 shares
  at $0.001 par value; no shares issued or
  outstanding                                                           -    
       
Common stock; authorized 50,000,000 shares
  shares at $0.001 par value; 1,600,000
  shares issued and outstanding                                       1,600     

Additional paid-in capital                                          104,041     

Deficit accumulated during the development 
stage                                                               (73,292)

        Total Stockholders' Equity                                   32,349     

         TOTAL LIABILITIES AND STOCKHOLDERS' 
         EQUITY                                                $     35,247     
<PAGE>
      
                   LITIGATION ECONOMICS, INC. AND SUBSIDIARY
                          (A Development Stage Company)
                     Consolidated Statements of Operations

                              
                                                              From Inception  
                                 For the                        on July 31,     
                               Year Ended                      1996 Through  
                                December 31,                   December 31, 
                                   1997                          1997         

REVENUE                        $     19,534                   $     19,534

EXPENSES

  Depreciation                         3,747                         3,747
  General and administrative          83,204                        88,973

     Total Expenses                   86,951                        92,720

LOSS FROM OPERATIONS                 (67,417)                      (73,186)

OTHER INCOME          

  Loss on sale of asset                 (858)                         (138)
  Interest income                         -                             32

     Total Other Income                 (858)                         (106)

NET LOSS                        $     (68,275)               $     (73,292)

NET LOSS PER SHARE              $       (0.04)

WEIGHTED AVERAGE NUMBER
  OF SHARES OUTSTANDING              1,550,000   
<PAGE>

                        LITIGATION ECONOMICS, INC. AND SUBSIDIARY
                              (A Development Stage Company)
                      Consolidated Statements of Stockholders' Equity 
 
                                                                    Deficit   
                                                                  Accumulated
                                                     Additional   During the  
                                    Common Stock      Paid-in     Development
                                 Shares      Amount   Capital       Stage       

Balance, July 31, 1996             -      $     -    $   -       $     -      

Common stock issued for 
 cash at $0.001 per share       1,000,000     1,000      -             -
Recapitalization of G.E.C.,Inc.   500,000       500    4,141           -        

Net loss for the period ended
 December 31, 1996                 -            -        -          (5,017)

Balance, December 31, 1996      1,500,000     1,500     4,141       (5,017)

Common stock issued for
 cash at $1.00 per share          100,000       100     9,900          -     

Net loss for the year ended
 December 31, 1997                 -             -       -          (68,275)

Balance, December 31, 1997      1,600,000   $ 1,600  $ 104,041    $ (73,292)
<PAGE>

                      LITIGATION ECONOMICS, INC. AND SUBSIDIARY
                            (A Development Stage Company)
                         Consolidated Statements of Cash Flows

                                                               From Inception  
                                                   For the      on July 31,   
                                                  Year Ended   1996 Through 
                                                  December 31,  December 31, 
                                                     1997           1997        
CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss                                         $ (68,275)     $ (73,292)
Adjustments to reconcile net loss          
 to net cash used by operating activities:          
Depreciation                                         3,747          3,747     
Changes in operating assets and liabilities:     
(Increase) decrease in accounts receivable              (8)            (8)
(Increase) decrease in deposits                       (125)          (125)
Increase (decrease) in accounts payable                 32          2,510
Increase (decrease) in unearned revenue                388            388     

       Net Cash (Used) by Operating Activities     (64,241)       (66,780)      

CASH FLOWS FROM INVESTING ACTIVITIES:          

  Purchase of fixed assets                         (28,427)       (28,427)
  Cash acquired in recapitalization of subsidiary      -            4,641

       Net Cash (Used) by Investing Activities     (28,427)       (23,786)     

CASH FLOWS FROM FINANCING ACTIVITIES:

  Common stock issued for cash                     100,000        101,000      
       Net Cash Provided by Financing Activities   100,000        101,000       
NET INCREASE (DECREASE) IN CASH                      7,332         10,434       
CASH AT BEGINNING OF PERIOD                          3,102            -     

CASH AT END OF PERIOD                             $ 10,434      $  10,434     

Cash Paid for:

Interest                                          $    -        $     -         
Income taxes                                      $    -        $     -    
<PAGE>

                       LITIGATION ECONOMICS, INC. AND SUBSIDIARY
                            (A Development Stage Company)
                     Notes to the Consolidated Financial Statements
                                  December 31, 1997


NOTE 1 -     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Organization and Operating History

The Company was incorporated in the State of Nevada on April 27, 1995, under 
the name of Landmark Leasing, Corp.

The Company planned on operating as a leasing company of residential property, 
commercial property, vehicles, and related activities.  The Company has 
discontinued pursuing any of these activities and accordingly remains a 
development stage company.  The Company changed its name to Litigation 
Economics, Inc. on December 22, 1996.

On December 22, 1996, the Company acquired all of the outstanding stock of 
G.E.C., Inc., (the Subsidiary) for 1,000,000 shares of the Company's common 
stock valued at $.001 per share or $1,000 which represented the capital 
contributed to the subsidiary.  The acquisition of the Subsidiary was recorded 
as a recapitalization of the Subsidiary, whereby the acquired company is 
treated as the surviving entity for accounting purposes.  The Subsidiary was 
formed on July 31, 1996 in the State of Idaho.  The Subsidiary is engaged in 
the field of economic advising and consulting and  commenced principal 
business operations during 1997.  Accordingly, the subsidiary is also 
considered a development stage company.

Summary of Significant Accounting Policies

a.  Accounting Method

The Company's financial statements are prepared using the accrual method of 
accounting.  The Company has selected a December 31, year end.

b.  Net Loss Per Share

The computation of loss per share of common stock is based on the weighted 
average number of shares outstanding at the date of the consolidated financial 
statements.

c.  Provision for Taxes

At December 31, 1997, the Company has net operating loss carryforwards of 
approximately $73,000 that may be offset against future taxable income through 
2012.  No tax benefit has been reported in the consolidated financial 
statements, because the Company believes there is a 50% or greater chance the 
operating loss carryforwards will expire unused.  Accordingly, the potential 
tax benefits of the operating loss carryforwards are offset by a valuation 
allowance of the same amount.
<PAGE>

                     LITIGATION ECONOMICS, INC. AND SUBSIDIARY
                           (A Development Stage Company)
                   Notes to the Consolidated Financial Statements
                                December 31, 1997


NOTE 1 -     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

d.  Cash and Cash Equivalents

For purposes of the financial statement presentation, the Company considers 
all highly liquid investments with a maturity of three months or less to be 
cash equivalents.

e.  Use of Estimates

The preparation of financial statements in conformity with generally accepted 
accounting principles requires management to make estimates and assumptions 
that affect the reported amounts of assets and liabilities and disclosure of 
contingent assets and liabilities at the date of the financial statements and 
the reported amounts of revenues and expenses during the reporting period.  
Actual results could differ from those estimates.

f.  Principles of Consolidation

The consolidated financial statements include the accounts of Litigation 
Economics, Inc. and its wholly-owned subsidiary, G.E.C., Inc.  All 
intercompany transactions have been eliminated.

g.  Revenue Recognition

Revenue is recognized upon the completion of consulting and advising services.

h.  Computer Software

Proprietary computer software has been developed by the president of the 
Company to be used in the Company's economic advising and consulting 
activities.  The president of the Company has used his personal computer and 
space in his home during the development of this software.  These facilities 
and equipment are used primarily by the Company's president for his personal 
affairs and the business usage would be immaterial.  In addition, the 
president of the Company has not received any compensation from any source for 
his time in developing this computer software.  He is employed full-time 
elsewhere and presently devotes a small portion of his time to the continuing 
development of the computer software and operations of the Company.  
Accordingly, no costs associated with the development of the computer software 
have been reflected in the accompanying consolidated financial statements.

<PAGE>
                   LITIGATION ECONOMICS, INC. AND SUBSIDIARY
                         (A Development Stage Company)
                 Notes to the Consolidated Financial Statements
                             December 31, 1997


NOTE 2 -     PROPERTY AND EQUIPMENT

     Property and equipment consists of the following:
                                                                 December 31,   
                                                                     1997      

          Computer equipment                                   $     27,400
          Furniture and fixtures                                      1,027
                                                                     28,427
          Accumulated depreciation                                   (3,747)

          Net Equipment                                        $     24,680
                                   
Depreciation expense for the year ended December 31, 1997 was $3,747.
                    
NOTE 3 -     COMMON STOCK OPTIONS

In October of 1996, the Board of Directors adopted the Litigation Economics, 
Inc.,  1996 Stock Option Plan (the "Plan"), allowing the Company to offer its 
key employees, officers, directors, consultants, and sales representatives an 
opportunity to acquire a  proprietary interest in the Company.  The total 
number of shares reserved and available for distribution under the Plan shall 
be 500,000 shares.  These shares will underlie the Options issued by the 
Company pursuant to the Plan.  The Option holders will not be protected 
against dilution if the Company should issue additional shares of common stock 
in the future.  Neither the Options, nor the shares underlying the Options 
have pre-emptive rights.  As of December 31, 1997, no activity has transpired 
with regard to the Plan.

NOTE 4 -     GOING CONCERN

The Company's consolidated financial statements are prepared using generally 
accepted accounting principles applicable to a going concern which 
contemplates the realization of assets and liquidation of liabilities in the 
normal course of business.  However, the Company does not have significant 
cash and has not had significant operations. To date, the Company has been 
able to cover operating costs with existing financial resources.  Officers of 
the Company have committed to make capital contributions or advances to the 
Company should additional funds be needed to pay operating expenses.
<PAGE>