Alabama has one of the worst business climates in the country when it comes to lawsuit abuse, according to a study commissioned by the U.S. Chamber of Commerce.

Lawsuit abuse watchdogs cite Alabama's 47th ranking in the national legal liability study as proof the state needs greater tort reform. Critics dismiss the study's results as an attempt to destroy the country's jury system.

Alabama inched up one spot in 2006 after finishing 48th in the four previous editions of the U.S. Chamber Institute for Legal Reform's state liability systems ranking study. The report, Lawsuit Climate 2007, lists Alabama above Louisiana, Mississippi and West Virginia.

The state consistently ranked in the low 40s, highlighted by its rankings in punitive damages (47th), non-economic damages (46th), judge's competence (47th), juries' predictability (49th) and juries' fairness (47th).

The study signals the need for change, said Skip Tucker, director of Alabama Voters Against Lawsuit Abuse.

Tucker pointed to Alabama's recent history of "frivolous" billion-dollar jury awards. A Montgomery County jury awarded the state $11.9 billion in 2003 after it found ExxonMobil had underpaid natural gas royalties. An insurance company was slapped with a $1.6 billion punitive damages bill in 2004 when a Macon County jury ruled in the favor of a woman who paid for a policy that didn't exist. And that same year, Tyson Foods was ordered to pay $1.3 billion for illegally manipulating cattle prices.

"This goes to further concrete the evidence that Alabama is one of the worst places in the world for lawsuit abuse," Tucker said.

Montgomery attorney Jere Beasley rejected the report's findings as self-fulfilled prophecy. He noted that the survey polled in-house attorneys for corporations with annual revenues of at least $100 million.

Beasley represented the state during its $11.9 billion jury verdict victory against ExxonMobil. The ExxonMobil verdict is under appeal.

"It's as close to being a sham-type report that there can possibly be," Beasley said. "It was done for a purpose - to destroy the jury system, not just in Alabama, but the whole country. If you took the same poll from lawyers like me you'd get a different response."

The chamber's survey was based on 1,599 interviews with lawyers, including 77 from insurance companies. Survey respondents were asked to evaluate the state as a whole and to give states grades from A to F in several areas. The chamber noted that 57 percent of respondents said the litigation environment in a state is likely to impact important business decisions at their company, including where to locate or do business.

Beasley said the report is nothing more than a political device intended to influence future judicial races.

But Tucker said state legislators should heed the report as a wake-up call. Alabama's current lawsuit climate inhibits job creation, he said. He credits three tort reform laws passed in 1999 for the state's current economic boom.

"We passed them and our economy improved," Tucker said. "If we pass more, the economy will improve even more."