The Lone Star State may have received an early holiday gift from the Pacific Research Institute.

The nonprofit think tank has ranked Texas as the best state in the nation in which to do business based on tort liability.

San Francisco-based Pacific Research Institute has issued its first-ever U.S. Tort Liability Index study. That study ranks all 50 states based on tort burdens and relative law changes.

Texas is ranked No. 1 in the Pacific Research study. Right behind Texas in order of rank were Colorado, North Dakota, Ohio and Michigan. Bringing up the rear were Maryland, Pennsylvania, New York, Rhode Island and Vermont. Vermont is ranked last.

Torts are defined as wrongful acts that cause injury to a person or property for which the law allows a claim by the injured party to recover damages. Examples include medical malpractice and product liability claims.

Findings 'significant'

Pacific Research officials say the findings of their new tort report are significant -- and good news for Texans.

Lawrence J. McQuillan, co-author of the study and director of business and economic studies at Pacific Research, says the results of the data culled from the new report make it possible to "predict the winners and losers in the race for jobs and business investment."

In 2003, according to the American Tort Reform Association, Texas did itself a favor when state lawmakers passed legislation that changed the state's civil justice system.

The legislation addressed medical and product liability litigation, as well as placed limits on noneconomic and punitive damages. They claim that has allowed Texas to make great strides in "growing its economy and providing jobs and accessible health care to its citizens."

Critics of such changes are not swayed by the arguments that states like Texas are now in a better position economically because of their efforts to cap liabilities.

Among the critics is Irving-based Mothers Against Drunk Driving (MADD), which believes that there is a need to promote and sustain the rights of victims to be fully compensated.

Trial lawyers also have fought tort-reform initiatives, declaring them a war on victims' rights.