DES MOINES (AP) - A new study of the state's business climate ranks Iowa third best in the nation for corporations that find themselves hauled into court.

Consumer and labor groups said the study, conducted by the U.S. Chamber of Commerce, undermines efforts in the Legislature to ease regulations on businesses.

"Corporate defendants get more than a fair shake from Iowa's civil justice system," said Lisa Davis Cook, of the Iowa Citizen Action Network.

Cook and other activists were touting the study of states' legal liability systems.

"This evaluation shows that the top five states today as evaluated by corporate America as doing the best job of creating a fair and reasonable litigation environment are Delaware, Nebraska, Iowa, South Dakota and Indiana," said the study, released this month by the Chamber.

Business groups have been pushing a package designed to ease regulations on businesses, and critics argue that the plan further erodes the rights of workers and consumers. Those critics pointed to the Chamber study as evidence.

"The Chamber report demonstrates that, as things stand now, Iowa's civil justice system is tilted against Iowa families who need protection from bad medical care, unsafe products and unscrupulous business practices," said Scott Brown, of the Iowa Trial Lawyers Association.

Gov. Tom Vilsack has pushed lawmakers to approve a giant new fund aimed at pouring in money to recharge the economy, as well as revamping the state's income tax and property tax system.

A small knot of business-friendly Republicans has locked onto the business regulation package, arguing they will block consideration of any of the other priorities until the regulations are eased.

Vilsack has said he will veto the package of business regulation changes if it makes its way to his desk, and some see the two sides poised for gridlock with two weeks remaining in this year's session.