The state of New York could save up to $4.3 billion in tort costs and create between 74,000 and 201,000 new jobs by improving its legal environment, according to a working paper released by the U.S. Chamber Institute for Legal Reform (ILR).
According to the report, if New York were to make improvements to its legal environment to the level of the report’s benchmark, the state could reduce tort costs by 21.2% ($4.3 billion) and potentially increase employment by between .84% and 2.27%, which translates to 74,000 and 201,000 new jobs.
The study uses various measures to determine each states legal environment, including the perceived fairness of the legal system, the concentration of lawyers in the state, the number of tort cases filed per year and the number of major verdicts in the state. In the study, New York stood out from the other states having a disproportionately higher lawyer concentration.
This report is further proof that New York desperately needs lawsuit reform, ranking far above the majority of other states in each factor measured. See the press release LRANY issued yesterday.