CJAC: Civil Justice Association of California

May 5, 2011

Latest Survey of CEOs Finds California the Worst State to do Business in - Again

CJAC Points to Legal Climate as One Reason

SACRAMENTO - The Civil Justice Association of California (CJAC) is calling attention to the 2011 “Best/Worst States for Business” survey released this week by Chief Executive Magazine, in which 550 CEOs participated and found California to be the worst state in the nation for business for the seventh year in a row. CJAC President Kim Stone issued the following statement:

“Legal reform that reduces lawsuit abuse is absolutely essential to making California an easier place to do business. California is consistently ranked at the bottom of states in multiple surveys and reports on economic issues every year. Last year, the Institute for Legal Reform ranked California’s legal climate 46th out of the 50 states and the American Tort Reform Association found the state to be the second worst ‘Judicial Hellhole’ in the country as well.

“Policymakers can’t expect to make economic recovery a reality when business leaders don’t like doing business in California. Businesses in our state have to deal with a legal system that gives plaintiffs an unfair advantage in class actions, makes it easier for plaintiffs to get exorbitant punitive damages, makes it easier to exploit businesses in disabled access cases, makes it easier for plaintiffs to get awards in junk asbestos lawsuits, and the list goes on. It is tough to grow a business under these circumstances, yet growing businesses is what we need to reduce unemployment and to provide the state with the tax revenues it needs to provide critical services. It is time to make things a little easier for business, and reducing the number of lawsuits against them is one important way of doing so.”

A summary of the survey can be found here.

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