The Stats –and States—Don’t Lie

Last week, the US Chamber Institute for Legal Reform came out with its annual report, “Creating Conditions for Economic Growth.”  This report compiles previous studies in order to break down the figures by state to look at how the legal environment is affecting the business.  

We’ll save you from 38 pages of reading and pull out the key highlights:

• Tort costs keep employers from hiring new employees.  In Mississippi, the legal environment had a 27% effect on tort costs.  If this funding was given back to businesses, Mississippi could see an employment increase from 1.07% - 2.89%.
• Louisiana is filled with overeager lawyers.  For every 10,000 people, there are 21.2 tort suits.  Furthermore, for every 1,000 citizens, there are 1.37 lawyers.  It looks like even that .37 of a lawyer is pretty active to us.
• By merely improving the legal environment, states could cut these tort costs by up to 26%.
• The Harris State Liability Systems Ranking study judged the legal markets for fairness and excessive damages. West Virginia has the lowest Harris score of 35.1, out of 100 points available.  If you thought a 60 was failing, West Virginia sure has redefined that.

At the end of the report it’s clear: the economic losses that lawsuits cause add up to a not-so pretty penny—at a time when small businesses and individuals need those pennies most!