Is New Jersey’s legal climate getting worse?

A new report shows some alarming trends about the Garden State's legal climate, especially as the state tries to attract more businesses and grow its economy.

New Jersey ranks 38th in the U.S. Chamber of Commerce's Institute for Legal Reform latest survey of state legal climates. That rating is down from 32nd in 2012 when the survey was last released.

"The U.S. Chamber's been doing this survey for about 13 years now and this is the worst ranking New Jersey's ever received," said Marcus Rayner, New Jersey Civil Justice Institute President.

The rankings were compiled after polling more than 1,200 general counsels and senior attorneys or leaders in companies with annual revenues of at least $100 million.

New Jersey did not get much good news from the report.

The state received especially poor rankings when it came to class-action claims (41), timeliness of summary judgement or dismissal (44), and its often lengthy and expensive discovery process (41).

"The message we're getting is that New Jersey courts take too long to get rid of cases with the simplest resolutions," Rayner said.

Rayner is most concerned about the skyrocketing number of class-action claims, which often produce the smallest benefit to consumers and the greatest cost for business.

"New Jersey has seen a 258 percent increase in the number of large, complex class-action claims in its courts in the last five years," he said.

The best New Jersey ranking was for the competence of judges (31).

Overall, the survey could serve as a source of anxiety for business leaders as the state struggles to grow the economy since it also found that "75 percent of attorneys at U.S. companies say a state's lawsuit environment is likely to impact important business decisions at their company, including where to locate or expand."

That figure marks an 18 percent increase from eight years ago, and an all-time high.

"Companies pay attention to these rankings and this perception," Rayner said. "And you'll see companies a little less willing to expand in New Jersey and maybe a little less likely to come here."

Check out a full copy of the survey here.