In a recent survey of over 600 California citizens, a significant majority opined that lawsuits filed against businesses or public entities in the state hurt the California economy. Specifically, the survey respondents stated that business litigation in the state makes it more difficult for employers to succeed and hinders job growth.

The survey was conducted by an independent research company on behalf of California Citizens Against Lawsuit Abuse (CALA), a group that lobbies for tort reform in the state. Of the over 600 survey respondents, all of whom were of voting age, seven out of 10 agreed with the statement that "California's liability laws make it harder for employers to succeed in the state." In addition, approximately 75 percent of respondents agreed that creating lawsuit and tort reform in California would improve the state's business climate.

This year, state legislators have proposed several new laws which would implement tort reform in California. For example, bills were introduced which would give defendants the right to appeal an order denying or approving a class action, require judges to determine damage amounts instead of juries, and expand the definition of a 'vexatious litigant' in order to protect businesses from frivolous lawsuits. All of these bills failed to make it out of their respective legislative committees.

While the survey seems to indicate that California needs business lawsuit reform, Eric Bailey of Consumer Attorneys of California said that it may not paint an accurate picture. "When those questions are posed by an organization with an ax to grind, one has to truly view the results with a cautious eye, if not a grain of salt," he said. "In fact, businesses large and small in California seem to enthusiastically embrace how the civil courts can be utilized."

What do you think? Does California need business lawsuit reform?

Source: Sacramento Business Journal, "Survey: Most think business lawsuits hurt California economy," Kathy Robertson, Aug. 23, 2011