Over the past decade, Mississippi
developed a nationwide reputation as an unfavorable legal forum for many civil
defendants, particularly employers with their principal places of business in
other states. The state became known as the "lawsuit capital of the world." A
survey of senior attorneys sponsored by the U.S. Chamber Institute for Legal
Reform ranked Mississippi as having the worst overall legal system in the entire
country in 2002, 2003 and 2004.
Mississippi's legal system got its
black eye from the state courts in a few counties. The American Tort Reform
Foundation called these counties "Judicial Hellholes." Prominent
Mississippi plaintiffs' attorney Richard Scruggs has called them "magic
jurisdictions":
[W]hat I call the "magic
jurisdiction," . . . [is] where the judiciary is elected with verdict money.
The trial lawyers have established relationships with the judges that are
elected; they're State Court judges; they're popul[ists]. They've got large
populations of voters who are in on the deal, they're getting their [piece]
in many cases. And so, it's a political force in their jurisdiction, and
it's almost impossible to get a fair trial if you're a defendant in some of
these places. . . . These cases are not won in the courtroom. They're won on
the back roads long before the case goes to trial. Any lawyer fresh out of
law school can walk in there and win the case, so it doesn't matter what the
evidence or law is.
The national media, including the New
York Times, the Los Angeles Times, and the Washington Times,
recognized the Mississippi lawsuit phenomenon as front-page news. The television
news program 60 Minutes called Jefferson County, Mississippi, the "jackpot
justice capital of America" in a story examining why plaintiffs from all over
the country were flocking to Mississippi courts.
Locally, Jackson's Clarion-Ledger
newspaper ran a series of front-page articles describing a legal environment
where "the litigation industry . . . saturated the community with bias" against
civil defendants. Even a federal appellate court recognized that
Mississippi's state courts were "a mecca for plaintiffs' claims against
out-of-state businesses." One prominent Mississippi defense lawyer said that
Mississippi's reputation as a place for plaintiffs to hit the jackpot was not
only perception, but reality.
Clearly, if economic opportunity were
to flourish in Mississippi, serious problems regarding the state's legal
environment would need to be addressed. As former Mississippi Supreme
Court Justice Reuben Anderson explained in 2001, "[Mississippians] profit
greatly from being part of a national economy. This state simply cannot expect
to thumb its nose at national enterprise in the courtroom, while reaching out to
shake its hand in the customer line."
Recently, Mississippi's legal system
has made impressive strides to become fairer and more balanced. The state has
gone from being the poster child of litigation abuse to a shining example of how
a state can join the legal mainstream and foster economic growth through legal
reform. As one commentator has explained, "A combination of Haley
Barbour's leadership, sound decisions from the Mississippi Supreme Court, and a
slate of civil justice reforms are bringing business back to Mississippi and
stabilizing the state's medical liability marketplace."
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