The U.S. Chamber of Commerce's Institute for Legal Reform says recent tort reform has improved Mississippi's ranking, but they still rank it third to the last.
The chamber says businesses go where they are welcome, and states that have laws that encourage large lawsuits do not make for a welcoming atmosphere.
"Companies simply don't want to come to a state where they think they'll be the target of frivolous lawsuits, or even worse, won't get a fair shake if they are sued," said Tom Donohue, president of the organization. "Can you blame them?"
“The best thing a state can do to attract business is to have a fair legal system,” continued Donohue. “There have been some great improvements under Gov. Barbour’s leadership and we are trying to help spread the word that Mississippi is now a good place in which to do business.”
The U.S. Chamber of Commerce is the world's largest business federation. It represents three million businesses nationwide.
Here are the best and worst state legal systems in America, according to that Chamber of Commerce study:
It found Delaware with the best legal system, followed by Nebraska, Virginia and Iowa.
The chamber called West Virginia the worst, followed by the three neighboring Gulf states, Louisiana, Mississippi, and Alabama.