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Corporate Counsel Again Rank Del. Law and Judges Best

For the seventh consecutive year a survey of top corporate counsel rated Delaware's legal system the most fair and efficient in the country, but not by as wide a margin as in previous years.

Independent market research firm Harris Interactive conducts the annual assessment of state liability systems for an arm of the U.S. Chamber of Commerce.

In the survey of nearly 1,000 in-house counsel of the nation's largest companies, Delaware again scored highest in nearly every category, and again West Virginia placed last overall.

And again this year a trial lawyer watchdog group condemned the survey's "phony ratings," which it says are not statistically valid.

In a press release Jon Haber, chief executive of the Washington, D.C.-based American Association for Justice, criticized the report as "designed to serve a corporate agenda."

He noted that the survey participants were all corporate defense lawyers at companies earning $100 million or more annually.

In a statement accompanying the report Tom Donohue, the Chamber of Commerce's CEO, said the survey is important because companies use it to make decisions concerning where to incorporate, establish their headquarters and expand their businesses nationwide.

Corporate attorneys credit Delaware's balanced and predictable corporate law and its expert and efficient judges as the reason two-thirds of the nation's Fortune 500 companies are incorporated there.

Donohue said the survey indicates that some states, including Nebraska, Maine and Indiana, are quickly catching up to Delaware in key areas such as speedy litigation, discovery and handling of class-action suits, but others have a long way to go.

West Virginia, Mississippi, Louisiana and Alabama made up the bottom four for the seventh year in a row.

"We've been telling state policymakers for seven years now that they need to improve their state's lawsuit system in order to attract new businesses and grow jobs, and, at least in some states, the message appears to be getting through," Donahue said.

In the survey Delaware again ranked first in:

• Overall treatment of tort and contractual litigation;
• Treatment of class actions;
• Punitive damages awards;
• Timeliness of summary judgment and dismissal rulings;
• Discovery;
• Judges' impartiality and competence; and
• Meaningful venue guidelines.

However, Massachusetts topped Delaware this year in the category of handling of scientific and technical evidence, Colorado was rated first as to noneconomic damages, and Nebraska won the categories of jury predictability and fairness.

Again this year corporate counsel's top concerns were:

• Speeding up the trial process;
• Reform laws on punitive damages;
• Unnecessary lawsuits;
• Tort reform; and
• High litigation costs.

Corporate counsel again said the cities and regions with the least fair and reasonable litigation environments were Los Angeles, Chicago, New York, Miami and Madison County, Ill.

Donahue said the Chamber of Commerce will soon launch a nationwide television and online advertising campaign spotlighting the effects of lawsuit abuse on local businesses and families.

To comment, ask questions or contribute articles, contact West.Andrews.Editor@Thomson.com.