HARRISBURG, Pa., May 12, 2006 (PRIMEZONE) -- Gov. Ed Rendell's recent veto of a bill that would have modified the unfair legal doctrine of joint and several liability by re-enacting the Fair Share Act is reflected in Pennsylvania's deplorable ranking among the 50 states for the health of its civil-justice system.
A new study conducted by the Pacific Research Institute on behalf of the American Justice Partnership ranked the Commonwealth 47th worst for the performance of its legal system. The U.S. Tort Liability Index considered 39 factors in five categories: Monetary Tort Losses; Threats; Caps; Substantive Law Rules; and Reform. Only three states -- New York, Rhode Island and Vermont -- fared worse than Pennsylvania.
"The Commonwealth is among the worst for liability laws that reward abuse, impede job creation and result in higher costs on consumer goods and services," said Floyd Warner, president of the PA Chamber.
Warner said the governor's decision to go against his word and reject Fair Share Act re-enactment, the first significant legal reform in the Commonwealth in decades, is counter to what many other states are wisely realizing -- that a healthy legal system is a vital indicator of a state's economic vitality and growth.
Four of the states in the top 10 were also in the top 10 in the 2004 U.S. Economic Freedom Index, which ranks states according to how friendly or unfriendly they are toward free enterprise and consumer choice. Five states, including Pennsylvania, are in the bottom 10 of both indexes.
The study also identified states that are positioned to stay at the top, stay at the bottom, or are poised to move up in future rankings.
Pennsylvania was included in a small list of states poised to drop in future rankings or stay at the bottom because they have relatively high monetary tort losses and significant threats, and have enacted few, if any, comprehensive reforms. Joining Pennsylvania on that list are Alabama, Florida, Illinois and Vermont.
"Inequities in our legal system are just another burden facing job creators; one more factor that has the potential to send job opportunities elsewhere," Warner stressed. "The governor missed an opportunity to send a positive message to job creators, opting instead to ensure that Pennsylvania remains at an economic disadvantage when compared to more progressive states that understand the importance of implementing commonsense legal reforms."
The Pennsylvania Chamber of Business and Industry is the state's largest broad-based business association, with thousands of members representing more than 50 percent of the private workforce. More information is available on the Chamber's website at www.pachamber.org
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