Indiana's Legal Climate Not Ideal For Business Owners

About 89 percent of business leaders say a state's lawsuit climate impacts important company decisions such as where to locate or expand.

(Indianapolis, Ind.) - A new study says Indiana's legal climate isn't ideal for business owners. 

Harold Kim from the U.S. Chamber Institute for Legal Reform says Marion County is an active hub for malicious asbestos litigation.

“It creates a hostile economic environment for companies where they have absolutely no certainty whether they’re going to get an extortionate demand from a class action lawyer,” Kim explains.

According to The 2019 Lawsuit Climate Survey, Indiana ranks 31st best legal climate for business owners. That's its lowest ranking in the history of the survey with a 16-point drop since 2017. 

Kim says a lack of new legislation to protect business owners, while asbestos litigations spike, is one reason for the sudden plunge on the list. 

In some cases, Kim says, businesses are going under for harmless matters.

“You get demand letters that if your mirror is not six inches within requirements under the laws and regulations, that you’ve violated the state ADA and in order to get rid of this you’re going to have to pay the attorney X amount,” he says.

Kim says injured employees should be compensated, but attorneys are taking advantage of the laws.

“They are basically manufacturing claims so that they can extract settlements and attorneys fees from the number of tools that the legislature has granted through these private rights of action,” he says.