The U.S. Chamber of Commerce announced Monday the results of a national study that has recently sparked debate regarding Wisconsin's legal climate and its impact on businesses.
In the study, performed by Harris Interactive, Wisconsin's legal system is ranked at 23rd best of all 50 states, falling 13 spots in the past two years.
Conducted in partnership with the U.S. Chamber Institute for Legal Reform, the 2006 Harris State Liability Systems Ranking study involved input from more than 1,400 senior attorneys from companies with annual revenues surpassing $100 million, according to ILR President Lisa Rickard.
"In the past, Wisconsin has fallen from one of the top 10 states to [number] 23, which is a pretty significant drop for any state," Rickard said.
Surveyors considered criteria such as tort litigation and corporate liability, as well as how state Supreme Courts rule on corporate cases.
States with lower ratings generally attract fewer businesses, pumping less money and job opportunities into the state, according to Rickard.
Tom Donohue, president and CEO of the U.S. Chamber of Commerce, agreed a state's legal system largely impacts its ability to attract businesses.
"An unfair legal system sucks the life out of a state's economy," Donohue said in a release. "It affects business expansion, it affects jobs and it takes money out of consumers' pockets."
Some, including Donohue, have criticized the governor for vetoing legislation they view as positive steps toward improving Wisconsin's business atmosphere.
Additionally, U.S. Congressman and gubernatorial candidate Mark Green, R-Wis., has voiced concern that Gov. Jim Doyle's position on corporate liability reform has caused slow job creation.
"Jim Doyle's opposition to lawsuit reform is threatening our ability to attract good jobs to Wisconsin," Green said in a release. "Jim Doyle's vetoes have created a safe-haven for trial lawyers to attack Wisconsin businesses."
As Republicans continue to condemn the governor, Democrats claim the study uses poor criteria to determine the rankings.
State Rep. Spencer Black, D-Madison, said the study is not legitimate, and added that the study is simply a "big business lobbying campaign."
Doyle spokesperson Dan Leistikow agreed, as he said Wisconsin's climate is strong.
"[Green] needs to get his facts straight," he said. "The governor has signed medical malpractice caps back into law and is taking a balanced and responsible approach to [this matter]."
Medical malpractice caps were reinstated earlier this month, following the completion of the study.
Joanne Doroshow, executive director for the Center for Justice and Development, also expressed opposition to the ILR's report.
Doroshow said the chamber's press release was "very unfair and dishonest," calling it a "transparent political attack."
The government has tried to protect consumers rather than the interests of businesses, Doroshow added.
According to Doroshow, Wisconsin has ranked higher in other studies — such as one published by Forbes Magazine, which he said ranked several cities in Wisconsin in their top 150 best places to do business, including Madison.
In the 2006 study, West Virginia is placed last among the 50 states, while Delaware is at the top of the list for the fifth year in a row.
