Market Wire.com, November 2006

Report Shows Tort Reforms Make State More Competitive

COLUMBUS, OH -- Ohio ranks No. 4 in the United States and No. 1 in the Midwest for best tort climate, according to a report released this year by the Pacific Research Institute (PRI), a free-market think tank. In the competition for jobs and capital investment, those states that suffer from high tort costs will continue to lose jobs and businesses to those with superior tort systems, states the U.S. Tort Liability Index: 2006 Report, which ranks all 50 states in terms of relative tort burdens and tort reforms.

According to the report, Ohio's January 2005 reforms drove the state to the top of the list.

The January 2005 reforms were designed to balance the interests of both plaintiffs and defendants. It works to strengthen Ohio's economic competitiveness by eliminating what some legislators believed were frivolous injury lawsuits and checking conditions that have led to increased liability insurance costs.

The U.S. Tort Liability Index 2006 included data on 39 variables, which were divided into five subgroups: monetary tort losses, threats, monetary caps, substantive-law rules and reforms and procedural/structural rules and reforms. The overall ranking comes from the average ranking for each state across all 39 variables.

Ohio's strongest showing in the 39 variables included: Workers'-compensation insurance losses, commercial self-insurance losses, medical-malpractice statue of limitations, guidelines for general-manufacturer liability or retailer liability, civil-liability exemptions for junk food or obesity, frivolous lawsuit reform, and jury service reform.

"These reforms are one of many things that make Ohio a great choice for capital investment," said Ed Burghard, executive director of the Ohio Business Development Coalition, which is responsible for marketing the state for capital investment. "Tort reforms, tax reforms, and specialized programs have created a successful business environment. However, Ohio also has attributes that make for a fulfilling personal life as well -- 'right sized' cities surrounded by smaller communities, sports, entertainment and an affordable cost of living. These are all things that make expansion in Ohio attractive.

"It's no wonder 62 Fortune 500 companies like Procter & Gamble, Kroger, Goodyear Tire and Rubber, Cintas, Cinergy, Western & Southern Financial, Federated Department Stores, Mettler-Toledo International, Cardinal Health, Wendy's International, Borden Chemical, Nationwide Insurance, Cooper Tire & Rubber, Greif, Lincoln Electric, Scotts Miracle-Gro, Sherwin Williams, Eaton Corporation and many others, call Ohio home."

About the Ohio Business Development Coalition

The Ohio Business Development Coalition (OBDC) is a nonprofit organization that provides marketing strategy and implementation to support Ohio's economic development efforts. For more information, please visit www.ohiomeansbusiness.com.

To access the complete report, please visit http://www.pacificresearch.org/pub/sab/entrep/2006/tort_reform/?index.html