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Updated Briefing for Corporate Directors:
The 2008 Boardroom Guide to State Legal Climates
Prepared for Directorship Magazine
by Steve Hantler, Chairman,
Center for America
and
CFA's State Partners
Audio Interview with Jeff Cunningham of
Directorship Magazine - click here!
Directorship magazine and
www.directorship.com partnered with CFA to publish a 12-page
Guide profiling
the political, legislative and judicial dynamics that create the
current and future liability risks in each state. Click on the
article cover to download a free copy.
 "No
subject is so divisive, distracting, or erodes shareholder value
more than frivolous but costly litigation," says Jeffrey M.
Cunningham, chairman and CEO of
Directorship.com.
"Conversely, we all recognize the need for a legal system that
dispenses justice and penalties when and where appropriate. But our system
of torts has become a feeding trough for the worst breed of legal
huckster and the threat is compounded by the flow of political
contributions to candidates who are more than willing to ease the
way for this kind of litigation at the legislative level."
Nor is it time for companies who do business in states with
positive litigation reputations to become complacent about
tort reform, writes author
Steven B. Hantler, chairman of
the Center for America. In fact, 10 of
the 18 states in this year’s Guide with positive
liability climates are trending downward at a time when tort
costs continue to rise.
 "The
plaintiffs’ bar’s campaign to expand liability laws and
rulings is still driving up costs and litigation threats all
over the country," says Hantler (left). “The 2008 Guide
reveals why litigation costs keep increasing because of the
successful and ongoing plaintiffs’ bar campaign to elect
pro-plaintiff candidates to state Supreme Courts and state
offices such as attorney general and governor.”
"Although some companies feel they can sit on
the sidelines while others support lawsuit reform efforts,
this is the wrong decision," Hantler continues. "In
Michigan, the rule-of-law majority on the state Supreme
Court has restored fairness and the plaintiffs' bar has
targeted Chief Justice Cliff Taylor for defeat to reclaim "their"
court. Similar battles are underway in other states. Some state Supreme Courts have shifted in
recent years to a rule-of-law
majority, and the plaintiffs' bar desperately wants these
courts "back", creating long-term adverse litigation
climates in those states and very unfair results for
business. The historic choke-hold of the trial lawyers on
state civil justice systems threatens the free enterprise
system of our country," Hantler concluded.
The Guide's high-level risk analysis -- intended for busy board
directors and their advisors as they make strategic business
decisions such as where to open an office or plant --
is based on the expertise of the CFA Foundation combined
with the results of two national research indices: the
Pacific Research Institute’s 2008 U.S. Tort Liability
Index and the 2008 Institute for Legal Reform/Harris
Lawsuit Climate 2008.
There are some encouraging notes on this year’s findings,
however. Savvy directors and business executives should take
second looks at Tennessee, Utah, Indiana, Ohio, Nebraska,
Virginia, and Texas which have among the best litigation
climates for business.
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