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September
6, 2006 – The Kansas Chamber of Commerce, with assistance
from the American Justice Partnership, conducted a survey in May
2006 in which Kansas business leaders and owners were invited to
anonymously complete an internet-based questionnaire. The
results show how the out-of-control legal environment is
increasing costs to consumers and impeding economic growth and
innovation.
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More than four out of five, 88%,
say that the legal climate in Kansas increases the cost of
everything consumers buy in Kansas.
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Nearly four out of ten, 37%,
have decided against developing new products and/or services
in order to avoid liability lawsuits.
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More than four out of five
business leaders responding, 84%, say that they now spend
more time than ever before trying to manage the risks of
being sued.
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Six out of ten of those
responding, 60%, say that the legal climate in Kansas
creates disadvantages for businesses in Kansas compared with
other states.
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More than four out of ten, 41%,
say that the legal climate in Kansas discourages them from
spending to create or improve products and/or services.
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Marlee
Carpenter |
"Simply put, Kansas cannot
achieve strong economic growth and successfully compete in the
global marketplace in the future while the state's business
leaders feel required to devote such a high level of company
resources to coping with unwarranted liability risks," said Marlee
Carpenter, vice president of government relations for the
Chamber.
The survey reveals how the legal
climate in Kansas impacts the state’s economy and how business
investors view the effect of the legal climate on their
companies. Although the state court system ranks in the top 30%
of the nation, Kansas business owners still feel threatened by
lawsuits and are spending a great deal of time and money
protecting their businesses from them.
"These survey results point to the
fact that business investments in America's heartland are being
deflected by the abusive tactics of the trial bar," said Steve
Nowlan, vice president of the American Justice Partnership. "It
makes no sense to have policies that discourage investment in
new jobs and new products while driving consumer prices higher.
We should not sacrifice the ability of Kansas businesses to
compete in the regional marketplace just so that the trial bar
can strike it rich by gaming the civil justice system to their
advantage."
Nearly one-quarter, 23%, of those
leaders responding to the survey represent small businesses with
49 or fewer employees. Another 11% have 50 to 99 employees and
44% have 100 to 499 employees. Leaders representing businesses
with 500 or more employees comprise 22% of the respondents.
Thus, the survey respondents reflect the group of small and
medium size businesses that traditionally generate the greatest
share of new jobs and fuel local economic growth.
Listen to an audio interview with Kansas Chamber's Marlee
Carpenter
Download Full Survey Report |
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The American
Justice Partnership is a national nonprofit coalition of leading
corporations, think tanks, foundations, trade associations,
individuals and organizations advocating for legal reform at the
state level. AJP is an affiliate of the National Association of
Manufacturers.
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