More than 82 percent of Iowa CEOs and company presidents say Iowa’s legal climate is hurting job growth. I stress the word Iowa, because it’s important to recognize that this is the first time Iowa business leaders with business operations here and actual experience with our state’s legal system have been asked their opinion on the overall health of Iowa’s legal climate. The survey, conducted and released recently by the Iowa Association of Business and Industry, revealed that many business leaders are dissatisfied with Iowa’s legal climate, and believe it is costing the state jobs in comparison with states where legal reforms have been enacted.

With the exception of joining 35 other states in reforming appeal bond limits, Iowa has not enacted any major reforms to its legal system in a decade. (That reform only became necessary because of the growth of exorbitant judgments that essentially denied the right to appeal.) The result is that other states are passing Iowa by in pursuit of a better economic climate.

In fact, since 1996, 22 states have adopted some level of reasonable limitations on awards of non-economic damages in lawsuits. Iowa has not. In the past decade, 42 states have enacted medical liability reforms to protect access to health care. Iowa has not. Twenty-three states have adopted legislation to stop frivolous lawsuits against restaurants and food distributors by the obese. Iowa has not. More than 15 states have placed limitations on excessive punitive damages. Iowa has not.

Being left out of the reform movement has clearly affected the attitudes of Iowa job creators, as the survey illustrates.

Why should consumers worry, too? Four out of five of the business leaders surveyed say that Iowa’s legal climate increases the cost of everything consumers purchase in the state. Much of the $233 billion spent in America in 2003 litigating, defending and paying for lawsuits has been absorbed by consumers who purchase goods and services. That’s an average annual cost to each Iowan of $845, according to actuarial data prepared by Tillinghast-Towers Perrin. An average Iowa family’s tort costs could pay for more than three months of groceries, six months of utilities or eight months of health insurance.

Since the survey was released, those who profit from Iowa’s legal climate have been quick to cite the U.S. Chamber of Commerce’s perception survey of corporate lawyers from companies with more than $100 million in revenues. It rates Iowa better than most states. Unfortunately, that telephone survey didn’t qualify the respondents by requiring any experience at all with Iowa’s legal system.

To take the pulse of decision makers in Iowa businesses, we encourage policy makers and consumers to review the Iowa survey results at www.iowaabi.org. And remember, the survey participants are making decisions every day about where to add more jobs. Will that be in Iowa or in some other place with a better legal climate?