Lawsuit abuse costs Illinois businesses

CNBC recently released their 2009 list of America's Top States for Business, and Illinois rests squarely in the middle at No. 25, far behind neighboring states such as Indiana, Iowa and Missouri.

On the surface, being in the middle of the pack might not seem like such a bad place to be, but the overall ranking offsets Illinois's poor performance in two key areas. Illinois is ranked No. 38 in the cost of business category and is ranked No. 43 out of 50 states for business friendliness, according to the CNBC list. CNBC evaluated the business friendliness category by grading the "states on the perceived 'friendliness' of their legal and regulatory frameworks to business." In other words, only seven states have a worse legal and regulatory climate than Illinois. While Illinois scored high in transportation (12) and Technology and Innovation (4), the lack of legal reform clearly drove down the state's overall ranking.

This ranking, like so many others, only serves to cement Illinois' reputation as the "Lawsuit Capital of the Midwest." The lack of legal reform in Illinois is costing the state more than just a spot on a list; it is also costing jobs and opportunities. The unemployment rate in the Chicago area is 11.3 percent, nearly two points higher than the national average.

Companies look to build or expand their businesses in states where the legal system is fair. If Illinois is going to become a top spot for business, then lawmakers cannot continue to ignore the state's out-of-control legal system.

Travis Akin

Executive Director

Illinois Lawsuit Abuse Watch

Marion