Directorship's Annual Boardroom Guide to State Litigation Climates

Illinois, West Virginia Rank Worst; Tennessee, Utah Are Best
BOSTON--(Business Wire)--
Illinois and West Virginia are about the last states in which you
would want your company to do business. Following close behind are
California and Pennsylvania as among the states with the worst
litigation climates for business and the highest risk for lawsuits.

These are just some of the findings in Directorship's second
Annual Boardroom Guide to State Litigation Climates published in the
June/July 2008 issue of Directorship and produced in collaboration
with the American Justice Partnership Foundation and its team of
nationwide legal reform experts.

"No subject is so divisive, distracting, or erodes shareholder
value more than frivolous but costly litigation," says Jeffrey M.
Cunningham, chairman and CEO of Directorship.com. "Conversely, we all
recognize the need for a legal system that dispenses justice and
penalties when and where appropriate. But our system of torts has
become a feeding trough for the worst breed of legal huckster and the
threat is compounded by the flow of political contributions to
candidates who are more than willing to ease the way for this kind of
litigation at the legislative level."

Nor is it time for companies who do business in states with
positive litigation reputations to become complacent about tort
reform, writes author Steven B. Hantler, chairman of the American
Justice Partnership Foundation. In fact, 10 of the 18 states in this
year's Guide with positive liability climates are trending downward at
a time when tort costs continue to rise.

"The plaintiffs' bar counts on being able to take company CEOs and
directors by surprise when they file major lawsuits that are based on
expanded or previously overlooked state liability laws," says Hantler.
"These plaintiffs' lawyers try to create the 'perfect storm' by filing
lawsuits with unwarranted high demands while encouraging the news
media to publicize sensational allegations of wrongdoing. Their goal
is to create severe pressure in the marketplace and thus extort
companies into agreeing to settle the claims for outrageous amounts.
The solution is for CEOs and directors to understand the plaintiffs'
lawyers playbook and how to beat them before there is a litigation
crisis."

There are some encouraging notes on this year's findings, however.
Savvy directors and business executives should take second looks at
Tennessee, Utah, Indiana, Ohio, Nebraska, Virginia, and Texas which
have among the best litigation climates for business.

The high-level risk analysis--intended for busy board directors
and their advisers as they make strategic business decisions such as
where to open an office or plant--is based on the expertise of the AJP
Foundation combined with the results of two national research indices:
the Pacific Research Institute's 2008 U.S. Tort Liability Index and
the 2008 ILR/Harris State Liability Systems Ranking.

Also in this issue:

-- What a Director Needs to Know to Avoid Costly Lawsuits

-- The Coming Global-Warming Litigation Onslaught

-- Directors to Watch: the 50 Top Directors Under 50

About Directorship

Directorship is the leading publication and website for board
directors on issues of corporate governance, compliance, best
practices, and shareholder/proxy matters. Directorship and its
website, Directorship.com, reach nearly 50,000 board directors,
governance professionals, and global business leaders. Directorship
also publishes Global Proxy Watch, the leading newsletter for
institutional shareholders and compliance professionals.

About the AJP

The American Justice Partnership is a unique national nonprofit
coalition of leading corporations, think tanks, foundations, trade
associations, individuals and organizations advocating for liability
reform at the state level. Together with its partner organizations,
AJP implements tailored research and education initiatives in key
states in support of liability reform campaigns that have a realistic
chance of success. Visit its website at
www.AmericanJusticePartnership.org.

For a PDF version of the full article plus sidebars, visit
http://www.directorship.com/dire-states.

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Directorship's Best and Worst States for Business
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The 10 Best The 10 Worst

1. Tennessee 1. Illinois
2. Utah 2. West Virginia
3. Indiana 3. Rhode Island
4. Ohio 4. Pennsylvania
5. North Dakota 5. California
6. North Carolina 6. Florida
7. Nebraska 7. Montana
8. Virginia 8. New York
9. Michigan 9. Maryland
10. South Dakota 10. Alabama

Improving Declining

1. Oklahoma 1. Kansas
2. South Carolina 2. Washington
3. Mississippi 3. Colorado
4. Louisiana 4. Hawaii
5. Tennessee 5. Oregon
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Directorship
Judy Warner, 617-399-3046
Mobile: 781-632-6450
jwarner@directorship.com

Copyright Business Wire 2008