Survey Finds California Lawsuit Climate Among Worst in US
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A recent study known as the Lawsuit Climate 2010: Ranking the States, released by the United States Chamber of Commerce found that California's lawsuit climate is among the worst in the country. Not surprisingly, the study found that this climate continues to have a significant negative impact on the state's business climate.
According to the study, Los Angeles courts were considered the second worst in the nation for legal fairness, following Chicago. The state's litigation climate was ranked on par with such states as Alabama, Louisiana and West Virginia.
Approximately two-thirds of the corporate attorneys surveyed felt that California's legal environment is likely to have an impact on important business decisions that their companies will make. For example, the climate would affect whether they relocated or expanded their business within the state.
The U.S. Chamber of Commerce routinely surveys the legal systems of all the states. In this recent study, California's legal system ranked 44th for for fairness and reasonableness. For the last six years, California has placed between 44 and 46 in the survey. Particularly low rankings were given by survey respondents in the area of class action lawsuits, tort actions, damages awarded and contract disputes.
These results are not surprising given that more than four class action lawsuits are filed every day California courts are in session. California judges also remain more willing to certify as class actions cases which other states will not certify. In addition, out-of-state firms are permitted to open offices to file and prosecute asbestos claims in California which would have been barred in their home states.
Given the state of California's litigation climate, all employers are well-advised to take all preventative steps possible to avoid finding themselves in court.
Image: uphaa.com
