Loading...NEW STUDY RANKS GEORGIA 10th BEST LEGAL SYSTEM
Georgia would have ranked 45th had it not been for passage of 2005 tort reform package, authors say
The Georgia Chamber of Commerce today touted a new study released yesterday that shows Georgia ranks 10th among all 50 states for the quality of its civil justice system, a finding that is certain to have a positive impact on how businesses view Georgia and state efforts promoting economic development.
Georgia would have ranked 45th among the states, if comprehensive civil justice reform was not signed into law by Gov. Sonny Perdue in 2005, according to the authors of a first-of-a-kind study released this week.
This study—U.S. Tort Liability Index, published by Pacific Research Institute—ranks which states have relatively high tort costs, and which have enacted reforms to better position themselves as destinations for business relocation and future economic growth.
“Lawsuit abuse does more than injure corporations,” says George Israel, President & CEO of the Georgia Chamber. “It can also ruin the reputation of the whole state as a good place to do business, drive away jobs and act as negative public relations for our best economic development plans. Legal reform has the opposite effect. It is fuel for growth.”
There have been many anecdotal studies of how out-of-control legal costs and frivolous lawsuits affect Georgia’s economy. This study is the first of its kind to rank Georgia among all the states based on an analysis of objective data.
Many factors were weighed to determine these rankings, including monetary losses, monetary caps, substantive legal reforms, reforms in procedures and rules, the ratio of attorneys per dollar of gross state product (GSP), the total number of civil cases per 100,000 residents, as well as other factors.
“We knew when we adopted tort reform last year it would have an immediate and positive effect,” said Rep. Barry Fleming, R-Columbia County, chairman of the Special Committee on Civil Justice Reform and who shepherded the bill through the House. “I am delighted to see just how quantifiable and significant our efforts were.”
The study reports that Georgia can expect per-capita GSP to increase by 0.75 for every 10 percent improvement in the state’s legal ranking.
“This means that if we continue to keep our businesses and consumers focused on a fair and balanced legal environment for Georgia, we can expect it to have a big impact on the bottom line for us all—more jobs, better wages and greater potential for growth,” Israel said.
The study is accessible at www.pacificresearch.org.
