Houston Business Journal - May 19, 2006

Sweeping tort reforms enacted by the Texas Legislature in 2003 and 2005 have transported a state once known for civil justice shortcomings to the top of the list in terms of a favorable legal climate.

Texas ranks ahead of all 49 other states in "The U.S. Tort Liability Index: 2006 Report" issued this week by Pacific Research Institute, a San Francisco think tank.

Researchers weighed a range of economic indicators against 39 variables related to civil justice systems in each state.

Texas captured top ranking due to benefits derived from placing monetary caps on damages and legislating lawsuit reforms in such areas as medical malpractice, asbestos and junk food.

Had the same study been conducted prior to 2003, researchers note, Texas would have dropped into the 26th spot.

Some of the findings are supported by statistics, primarily in the medical arena.

The impact of lower liability insurance rates is evident in the number of physicians applying for licenses.

The Texas Medical Board expects a record 4,000 applications, double the number last year.

A total of 30 companies now provide physician coverage compared to four in 2003.

Some of the results, however, are backed more by suppositions than provable facts, especially in the area of economic development.