West Virginia "has a lot of good people" both in and out of state government. But, as far as the legal climate for business is concerned, the state is "not getting any better."
In fact, according to U.S. Chamber of Commerce President and CEO Tom Donahue, West Virginia not only scored worse, it tumbled to the bottom of the list.
Other organizations have agreed over the past several years. Last December, the Americans For Tort Reform labelled West Virginia a "judicial hellhole," ranking only behind Philadelphia and California for having a court system so adverse to business.
Why does West Virginia rate so low? Donahue cites the lack of an appellate court system as the most significant problem. Currently, lawsuits originate at the circuit court level. No automatic appeal to the State Supreme Court of Appeals currently exists. This means that an unjust judgment at the circuit court level could potentially stand with no review.
He also cites "ridiculous judgments." A state jury in August 2011 awarded a wrongful death judgment of over $90 million in the death of a nursing home patient suffering from dementia. The Charleston Daily Mail referred to it as "outlandish." This reflects juries from other areas, such as Baltimore County, Maryland, as reported in the Washington Examiner, who lean towards plaintiffs in any case.
The Examiner also reported that seven out of ten businesses surveyed claimed that legal climate was a strong factor in determining whether or not to invest in an area.
Although Maryland tumbled to 30th on the list, Virginia held a ranking of 7th. Maryland relies heavily on government employment and spending to boost its economy.
In any event, ranking well beneath any of its neighbors puts West Virginia at a disadvantage in attracting business.
Tom Donahue's explanation for the ranking
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