We often hear about how rough the business climate is in California for small businesses. I work with family farms, local grocers, and wholesale distributors across Washington, Oregon, Arizona, Texas, and here in San Diego County, and I’ve seen firsthand how California’s regulatory climate stifles growth.
This past week, the American Tort Reform Association released their annual “Judicial Hellholes” report, which once again shows that California is among the worst states in the nation due to a myriad of laws and regulations that create perilous conditions for small businesses and entrepreneurs. Unfortunately, California has appeared on the list for two decades. The ranking does not reflect a single case or an unusual year. It reflects a long-running pattern that has made it harder for businesses to plan for the future and for families to manage rising costs.
The report details a legal environment marked by massive verdicts, expanding liability theories, and an ongoing rise in lawsuits that target employers and small businesses. It notes a billion-dollar verdict that gained national attention and illustrates how unpredictable some courtrooms have become. These outcomes raise costs and deepen the uncertainty business owners face trying to operate in California. When risk becomes impossible to measure, the price of goods and services rises for everyone…