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U.S. Chamber survey ranks W.Va. last on legal climate

March 31, 2010 @ 12:00 AM

HUNTINGTON -- A U.S. Chamber of Commerce survey has once again ranked West Virginia last in the nation for its lawsuit climate, but the study commends state leaders for trying to improve the situation.

"While the state comes in last, we commend West Virginia's leaders for taking positive steps to improve their legal climate -- a climate that discourages the creation of new businesses and jobs at a time when residents need them most," said Lisa A. Rickard, president of the U.S. Chamber Institute for Legal Reform.

The report is based on telephone interviews with corporate lawyers familiar with litigation in West Virginia, who rank the state on 10 factors. According to the survey, 67 percent of the lawyers said a state's lawsuit environment affects decisions their companies make, including where to locate of expand their business.

However, lawyers from the other side of the courtroom dismiss the survey as an effort to reduce oversight and accountability.

"The Chamber's report is just another shallow attempt to weaken the civil justice system to help its Wall Street and big business financers," said Ray De Lorenzi of American Association for Justice, formerly the Association of Trial Lawyers of America. "The American people have seen what happens when the Chamber's largest clients -- like AIG, insurance and drug companies - are not held accountable."

One of the issues raised in the survey is the limited ability businesses have to appeal adverse court decisions in West Virginia. The state Supreme Court of Appeals has discretion on whether to consider appeals and takes only about 10 percent of the appeals.

A commission appointed by Gov. Joe Manchin recommended creating an appellate court, but a bill to do that failed in the legislature this year.

"As West Virginia's leaders work to recover from the current economic downturn, they need to pursue policies that help create jobs by removing the burdens of abusive litigation against local businesses. The bottom line is that West Virginia needs more jobs, not more lawsuits," said Rickard.