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

                                   Form 10-QSB
           [X] Quarterly Report Pursuant to Section 13 or 15(d) of the
                        Securities Exchange Act of 1934.
                      For the Quarter Ended March 31, 1998

                                       OR

          [ ] Transition Report Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934
                        Commission file number 333-16031

                        EMPIRE COMMUNICATIONS CORPORATION
           (name of small business issuer as specified in its charter)

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


          10670 N. Central Expressway, Suite 235, Dallas, Texas 75231
                    (Address of principal executive offices)

          Registrant's telephone no., including area code: 214-750-1323

             Former name, former address, and former fiscal year, if
                           changed since last report:

                           Litigation Economics, Inc.
                  227 South Ninth Avenue, Pocatello, ID 83201


  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 ___.

Common Stock outstanding at March 31, 1998:       2,000,000 shares(1) of $.001 
                                                       par value common stock.

______________________
(1) Does not include 2,350,000 shares of Convertible Preferred Stock outstanding
at March 31, 1998.

<PAGE>

                          Part 1 Financial Information

Item 1  Financial Statements

         The Financial  Statements of the  Registrant  required to be filed with
this 10-QSB Quarterly  Report were prepared by management  together with Related
Notes. In the opinion of management, the Financial Statements fairly present the
financial condition of the Registrant.
<TABLE>
<CAPTION>

                                    EMPIRE COMMUNICATIONS CORPORATION
                                   (Formerly Litigation Economics, Inc)
                                       [Development Stage Company]

                                         CONDENSED BALANCE SHEETS
                                               [Unaudited]

                                                  ASSETS

                                                               Mar. 31, 1998        Dec. 31, 1997
                                                               -------------        -------------
CURRENT ASSETS:
<S>                                                             <C>                  <C>    
     Cash                                                       $  263,595             $10,434
     Accounts Receivable                                             -                       8
     Notes Receivable                                            1,250,000                -
          Total Current Assets                                   1,513,595              10,442
                                                                ----------             -------

PROPERTY AND EQUIPMENT (NET)                                         -                  24,680

OTHER ASSETS:
     Deposits                                                        -                     125
                Total Other Assets                                   -                     125
                                                                     -                  ------

TOTAL ASSETS                                                    $1,513,595             $35,247
                                                                ==========             =======

<CAPTION>

                              LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

                                                               Mar. 31, 1998        Dec. 31, 1997
                                                               -------------        -------------
CURRENT LIABILITIES:
<S>                                                                <C>                  <C>   
     Accounts payable                                              $594                 $2,510
     Unearned Revenue                                                -                     388
          Total Current Liabilities                                 594                  2,898
                                                                   ----                  -----

STOCKHOLDERS' EQUITY (DEFICIT):
     Preferred Stock; authorized 5,000,000 shares at
          At $0.001 par value; 2,350,000 shares issued and         2,350                  -
          outstanding
     Common stock; authorized 50,000,000 shares at                 2,000                1,600
          $0.001 par value; 2,000,000 shares issued and
          outstanding
     Additional paid-in Capital                                1,601,691               104,041
     Deficit accumulated during the development stage            (93,040)              (73,292)
          Total Stockholders' Equity                           1,513,001                32,349
                                                              ----------               -------
TOTAL LIABILITIES & EQUITY                                    $1,513,595               $35,247
                                                              ==========               =======
</TABLE>


   The accompanying notes are an integral part of these financial statements.
         NOTE: The balance sheet at December 31, 1997 was taken from the
            audited financial statements at that date and condensed.

                                       2
<PAGE>
<TABLE>
<CAPTION>

                                     EMPIRE COMMUNICATIONS CORPORATION
                           (Formerly Litigation Economics, Inc. and Subsidiary)
                                      [Development Stage Companies]

                                    CONDENSED STATEMENTS OF OPERATIONS
                                               [Unaudited]


                                                      For the Three     For the Three     From Inception,
                                                      Months Ended      Months Ended      Apr. 22, 1995 -
                                                     March 31, 1998    March 31, 1997     March 31, 1998
                                                     --------------    --------------     --------------
<S>                                                     <C>                <C>               <C>    
REVENUE                                                  $13,206            $0.00             $32,740
Cost of Goods Sold                                        (1,200)             -                (1,200)
     Total Revenue                                       $12,006              -               $31,540
                                                         -------                              -------

EXPENSES
General and Administrative Expenses                       17,406              -               106,379
Depreciation                                               2,313              -                 6,060
    Total Expenses                                       $19,719              -              $112,439
                                                         -------                             --------

INCOME FROM OPERATION
                                                         ($7,713)             -               $80,899
OTHER INCOME:
     Loss on sale of asset                              ($12,035)             -               (12,173)
     Interest income                                        -                 -                    32

TOTAL OTHER INCOME                                      ($12,035)             -              ($12,141)

NET INCOME                                              ($19,748)             -              ($93,040)

NET LOSS PER SHARE                                         (.001)            Nil                 (.04)

Weighted Average Number of Shares Outstanding 2,370,555
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                       3
<PAGE>
<TABLE>
<CAPTION>

                        EMPIRE COMMUNICATIONS CORPORATION
                      (Formerly Litigation Economics, Inc.)
                          [A Development Stage Company]

                 Consolidated Statements of Stockholders' Equity

                                                                                              Capital In       Deficit Accumulated
                                                   Common Stock             Preferred         Excess Of            During the
                                               Shares       Amount       Shares   Amount      Par Value          Development Stage
                                               ------       ------       ------   ------      ---------          -----------------
<S>                                        <C>           <C>           <C>      <C>         <C>                <C>            
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         --       --         99,900                     --

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

BALANCE,                                    1,600,000        1,600         --       --        104,041                 (73,292)
     December 31, 1997

Common stock issued as 2:1
     forward split as 100% stock
     dividend                               1,600,000        1,600         --       --         (1,600)                   --

Common stock surrendered to
     treasury shares pursuant to sale
     agreement of G.E.C., Inc.             (1,200,000)      (1,200)        --       --          --                       --

Preferred stock issued for cash
     at $0.6382 per share                        --           --      2,350,000  2,350      1,497,650                    --

Net loss for the quarter ended
     March 31, 1998                              --           --           --       --          --                    (19,748)

BALANCE,
     March 31, 1998                         2,000,000        2,000    2,350,000  2,350      1,600,091                 (93,040)
</TABLE>

                                       4
<PAGE>


                        EMPIRE COMMUNICATIONS CORPORATION
              (Formerly Litigation Economics, Inc. and Subsidiary)
                          [Development Stage Companies]

        NOTES TO UNAUDITED CONDENSED & CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Condensed Financial Statements - The accompanying financial statements have been
prepared  by the  Company  without  audit.  In the  opinion of  management,  all
adjustments  (which  include  only normal  recurring  adjustments)  necessary to
present  fairly the  financial  position and results of  operations at March 31,
1998 and for all the periods presented have been made.

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  these  activities  and  accordingly  remains a  development  stage
company.  The Company changed its name to Litigation  Economics,  Inc. on August
22, 1996. On August 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.

On March 16, 1998,  Empire Financial  Investments LLC, a Texas limited liability
company ("Empire"),  purchased 2,350,000 shares of the Registrant's new Series A
Convertible  Preferred  Stock. As of March 16, 1998, these shares and the common
share  votes  associated  with  these  Series A  Preferred  shares,  constituted
approximately 77.9% of total common share votes of the Company,  and constituted
approximately  54% of the total equity  securities  of the Company.  Empire is a
controlled  subsidiary of Empire Financial  Corporation  ("EFC"),  a Texas-based
merchant  banking and investment firm  headquartered  in Dallas,  Texas.  EFC is
actively  engaged in the  acquisition  and  development of operating  companies,
focused on industrial production and commercial distribution businesses.

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

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.

Provision for Taxes - At December 31, 1996,  the Company had net operating  loss
carry forwards of approximately $5,000 that may be offset against future taxable
income  through  2011.  No tax  benefit  has  been  reported  in  the  financial
statements,  because the Company  believes  there is a 50% or greater chance the
carry  forwards will expire unused.  Accordingly,  the potential tax benefits of
the loss carryforward are offset by a valuation allowance of the same amount.

Depreciation  Methods - The Company is depreciating  its property and equipment,
which consists of computer equipment, fax machines, filing cabinets, etc., using
the straight line method,  over the estimated useful lives of the related assets
ranging from 3 to 10 years.

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

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.

Principles of  Consolidation - The  consolidated  financial  statements  include
accounts of Empire Communications  Corporation and its wholly-owned  subsidiary,
GEC, Inc.  through March 13, 1998,  at which date the  subsidiary  was sold to a
company  controlled by Cornelius  Hofman.  Inter-company  transactions have been
eliminated.

Revenue  Recognition  -  Revenue  will be  recognized  upon  the  completion  of
consulting and advising services.

                                       5
<PAGE>

NOTE 2 - 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  contribution or advances to the Company should additional funds
be needed to pay operating expenses.

NOTE 3 - RELATED PARTY TRANSACTIONS

On March 13, 1998, the Board of Directors of the Company approved the assignment
to the Company,  and the Company's assumption of, Empire's agreement with Deluxe
Corporation  for  the  acquisition  by  Empire  of two of  Deluxe  Corporation's
operating businesses: specifically all of the equity securities of Paper Direct,
Inc. and all of the assets of Current  Social  Expressions,  Inc. The Company is
obligated to pay Deluxe  Corporation  $80,000,000 for these businesses,  and the
Company   intends  to  raise  this  money  though  a  combination  of  leveraged
acquisition debt, using the assets being acquired as collateral,  and new equity
funding,  including the $1,500,000  capital infusion from Empire. The Company is
currently  developing a private  offering of equity  securities  to complete the
acquisition funding for the PaperDirect/Social Expressions transaction.

Sale of Subsidiary

Also on March 13,  1998,  the  Shareholders  and the Board of  Directors  of the
Company  approved the sale of all of the Company's  interest in G.E.C.,  Inc. to
Cornelius A. Hofman II, the former President and Chief Executive  Officer of the
Company,  G.E.C., Inc. was the Company's sole operating subsidiary through which
it conducted its historical economic consulting business. This sale was made for
$130,000,  being paid $10,000 in cash and $120,000  through the surrender by Mr.
and Mrs. Hofman of 1,200,000 shares of common stock.  The shares  surrendered by
Mr. and Mrs. Hofman are now held as treasury shares.

NOTE 4 - COMMON STOCK

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  and
opportunity to acquire a proprietary  interest in the Company.  The total number
of shares  reserved  and  available  for  distribution  under the Plan  shall by
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  preemptive
rights. As of March 31, 1998, no options have been granted or exercised pursuant
to the Plan.

On March 12,  1998,  the Board of  Directors  of the Company  declared a 2 for 1
forward  split of the  outstanding  common  stock,  in the form of a 100%  stock
dividend  distributed  to  shareholders  of record on March 1, 1998,  payable on
March 13, 1998.

On March 13, 1998,  pursuant to the sale  agreement  for G.E.C.,  Inc.,  Mr. and
Mrs. Cornelius A. Hofman II,  surrendered  1,200,000 shares of common stock that
are now held as treasury shares.

On March 16, 1998,  Empire Financial  Investments LLC, a Texas limited liability
company purchased  2,350,000 shares of the Registrant's new Series A Convertible
Preferred  Stock for the purchase  price of  $1,500,000.  Payment  terms for the
transaction were $250,000 in cash with the remaining  balance of $1,250,000 as a
note receivable to the company.

NOTE 5 - SUBSEQUENT EVENTS

The  company  is  currently   raising  $10.8  million  for  the  acquisition  of
PaperDirect/Social  Expressions transaction,  which has not been completed as of
May 8, 1998.

                                        6
<PAGE>

Item 2.   Management's Discussion and Analysis

         Summary

         The  Company  was  incorporated  on April 27,  1995.  During  its first
approximately  three years of operations,  the Company  generated no significant
revenues and is thus considered a development stage company.  The Company raised
funds at first from its founders, and then from a public offering in July, 1997.
During  1997 and early  1998,  the  Company  attempted  to develop  an  economic
consulting  and  expert  witness  business  based  on the  talents  of its  then
management  and a  proprietary  software  program  for the  analysis of economic
damages.

         During the first  quarter of 1998,  a change in name and control of the
Company took place.  Empire  Financial  Corporation of Dallas,  Texas  purchased
2,350,000 shares of convertible  preferred stock in a private placement on March
16, 1998, and thereby acquired voting and economic  control of the Company.  The
purchase  price  for  the  new  convertible   preferred  stock  was  $1,500,000,
represented  by  $250,000 in cash and a  promissory  note for the balance of the
purchase  price.  The  Company's  name  was  changed  to  Empire  Communications
Corporation,  and the Company  acquired  all of Empire  Financial  Corporation's
rights to a purchase  contract  whereby the Company could acquire two businesses
from Deluxe Corporation: PaperDirect, Inc. and Current Social Expressions. These
businesses  are engaged in the  wholesale  distribution  of specialty  paper and
related products and greeting cards to the United States business community.

         In connection  with the change of control and name change,  a number of
actions were taken. The former President and his wife, majority  shareholders of
the  Company,  (a) sold  1,200,000  shares of their  Company  stock  back to the
Company,  to be held as treasury stock, and (b) purchased  substantially  all of
the assets of the Company in return for this surrender of shares and the payment
of $10,000 in cash.  The Company  declared a stock  dividend of one new share of
common stock for each share owned as of March 1, 1998. This 2-for-1 stock split,
in the form of a 100% stock dividend, was effective on March 13, 1998. Also, the
Company  commenced a private offering of common stock to raise up to $10,800,000
in new  equity  capital  for the  purpose of  facilitating  the  acquisition  of
PaperDirect and Current Social Expressions.

         The  acquisition  of  PaperDirect  and Current  Social  Expressions  is
expected to take place on May 29, 1998.

Results of Operations

         The Company lost $19,748 during the first quarter of 1998, resulting in
a net loss of $0.001 per common share. There were no operations during the first
quarter of 1997 with which to compare the current quarter's performance.

                                       7
<PAGE>


         The Company expects to have profitable  operations after the closing of
the  PaperDirect  and  Current  Social  Expressions  acquisitions  in the second
quarter,  although the results for the actual second quarter will be impacted by
acquisition  related costs, and the Company may not be profitable for the second
quarter.

Financial Condition and Liquidity

         Total  assets at quarter end were  $1,513,595,  which is  significantly
higher than at March 31, 1997 or December 31, 1997.  The improved  asset size is
the result of the new equity  subscription from Empire Financial  Corporation in
March 1998.  The  purchase  price paid by Empire is reflected in the higher cash
balance and in the note receivable.

         Liabilities were  significantly  reduced for the quarter as a result of
insignificant  business operations and the acquisition of the former business of
the Company by its former President during the quarter.

         Stockholders  equity is higher,  reflecting the Empire Financial equity
purchase.  Without the Empire  investment  in the Company,  shareholders  equity
would be down from the same  quarter  last year and from year end as a result of
the  accumulated  losses from  operations.  As of quarter  end,  the Company had
accumulated losses of $93,040 which will be available to be applied against some
of the future profits of the Company, if any.

         The Company's only asset of value, other than its cash, is its contract
to  acquire   PaperDirect  and  Current  Social   Expressions.   These  business
acquisitions  will  significantly  increase  the assets and  liabilities  of the
Company.  For  example,  the  Company  anticipates  closing on the  purchase  of
PaperDirect   and  Current   Social   Expressions   using   borrowed  funds  for
substantially the entire purchase price. This could result in up to $ 80,000,000
of new debt to be  recorded  in the second  quarter as a result of the  business
acquisitions. The Company believes that the revenues to be achieved from the new
businesses   will  be  sufficient  to  pay  debt  service  on  the   acquisition
indebtedness,  and that the pending  private  offering of the  Company's  common
stock will also relieve a significant portion of this acquisition debt.

Forward Looking Statements

         Except for the historical  information  in this  document,  the matters
described  herein  are  forward-looking  statements  within  the  meaning of the
Private  Securities  Litigation Reform Act of 1995. The Company cautions readers
not to place undue reliance on any forward-looking statements,  which speak only
as of the date  made.  The  Company  advises  readers  that  various  risks  and
uncertainties could affect the Company's  financial  performance and could cause
the Company's actual results for future periods to differ  materially from those
anticipated or projected.  These risks and  uncertainties  include,  but are not
limited to, those  related to: the  economic  environment,  particularly  in the
regions where the Company operates; competitive products and pricing; changes in
prevailing  interest rates;  fiscal and monetary  policies of the U.S. and other

                                       8
<PAGE>

governments;   regulations;   acquisitions   and  the  integration  of  acquired
businesses;  technology and associated  risks; and other risks and uncertainties
affecting the Company's operations and personnel.

         The  Company  specifically  disclaims  any  obligation  to  update  any
forward-looking  statements to reflect  occurrences or  unanticipated  events or
circumstances after the date of such statements.

                            PART II OTHER INFORMATION

Item 1  Legal Proceedings

         None

Item 2  Changes in Securities

         During the first quarter, the Company effected a 2-for-1 stock split of
its common stock in the form of a 100% stock  dividend paid on March 13, 1998 to
common shareholders of record on March 1, 1998.

Item 3  Defaults on Senior Securities

         None

Item 4  Submission of Matters to a Vote of  Security Holders

         During the first quarter, the  Shareholders approved the change in name
to Empire Communications Corporation and also approved the sale of substantially
all of the  assets of the  Company  to its  former  President.  This was done by
written consent as permitted by Nevada law.

Item 5  Other Information

         None

Item 6  Exhibits and Reports on Form 8-K

         Exhibit 3.1     Articles  of  Amendment  to  Article  of   Incorportion
                         (incorporated  by reference form Registrant's  Form 8-K
                         filing on March 28, 1998)



                                   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, hereunto duly authorized.

                                           Empire Communications Corporation

Date: 5/14/98                              By /s/ Louis A. Farris, Jr.,
                                           -----------------------------
                                           President and Chief Executive Officer



                                       9