Overcoming Legal Challenges in Regulatory Proceedings

Regulatory problems can disrupt even well-run companies. Overcoming legal challenges in regulatory proceedings starts with a solid legal foundation. Without a thorough understanding of the way such proceedings work, businesses risk serious threats to their operation.

Types of Regulatory Issues

Regulatory proceedings typically start with a simple event. It could be something as basic as a customer complaint. In Louisiana, public-facing industries receive the most criticism. One common trigger happens when a business makes a change in its services but doesn’t bother to get the appropriate approvals first, i.e., when a utility company makes changes to its grid without giving proper notification.

Another trigger is a spike in customer complaints. On average, public power users experience 1.5 fewer hours without power compared to other utilities. Even so, tiny disruptions can make people skeptical.

Failing to follow a prior order is another source of problems. Some businesses fail to file the correct documentation for a change in operations. These lapses may seem minor, but are still required.

Regulatory compliance isn’t static. Rules apply year after year. Agencies frequently check for ongoing violations.

First Steps After a Notice

The moment a notice arrives, the business should take it seriously. The title of the notice can differ based on the context. Either way, the impact is often the same. A response clock starts ticking regardless.

Next, the business should locate relevant documents. Customer service issues need billing records. Licensing conflicts require past renewals. Staff should avoid discussing the notice without direction. Anything written could be pulled into the investigation.

Legal help at this stage can stop mistakes. If the matter involves the LPSC, the response may need to follow strict filing rules. The business has to decide whether to fix the issue. If not, the business can request a hearing.

Common Legal Errors

Mistakes in regulatory cases often come early. Common issues include:

• Talking to the agency without legal counsel. Staff might think that they’re helping by answering questions right away. However, unreviewed statements can become evidence. A regulator can use causal explanations as evidence.

• Ignoring early correspondence. Some businesses don’t act until a formal order arrives. By then, the agency might have already built its case. Even informal inquiries deserve attention. Responding early can avoid formal charges.

• Missing filing deadlines. Louisiana agencies like the LPSC set strict response deadlines. Missing one can result in penalties. It could even make you miss out on your right to defend yourself. Extensions are not always guaranteed.

• Sharing sensitive documents. Agencies often ask for business records. Handing over trade secrets without legal review can waive confidentiality. Rule 12.1 governs protected documents.

• Failing to prepare for hearings. Some parties treat hearings as less serious than court. But the rules still apply. Poor preparation leads to a lack of evidence. A business can lose its case in these instances.

To avoid these errors, businesses have to take each step seriously. Legal advice at the start can prevent these issues from happening.

Building a Legal Defense

A strong defense needs as many facts as possible. The business must gather documents tied to the issue. After this, they need to review these materials against what the agency claims.

Legal teams often bring in outside professionals. The exact individuals vary based on the charge. These professionals can help show that the agency’s interpretation is flawed. Some can prove that the businesses acted within bounds.

It’s important to prepare as much as possible. Witnesses need to know what to expect. If the business fails to prepare, the agency’s evidence can go unchallenged.

Settling Versus Challenging the Agency

Some regulatory cases end with a settlement. That could mean paying a fine. It could also mean adjusting business practices. Settlement isn’t always the wrong move. It often avoids reputation damage.

Not all settlements are equal, however. A business needs to weigh the cost of the potential penalties. A hearing might be better if the terms are too broad.

For example, Rule 6 allows parties to submit a proposed settlement to the LPSC. The judge reviews it once it is submitted. A hearing might still take place.

The business could also choose to challenge the action. If this is decided, then there has to be a strong defense. The decision needs to be made logically without emotion.

After the proceedings are over, changes need to be made. Avoiding future action means fixing what caused the issue.

FAQs

How Do You Overcome Regulatory Challenges?

To overcome regulatory challenges, it’s important to understand the authority of the Louisiana Public Service Commission. The next step is reviewing the notice to understand why it was sent. From there, a business has to decide whether or not to comply. It could also contest the action if it does not think it is fair.

What Should a Business Do if It Receives Notice of a Regulatory Investigation?

If a business receives notice of a regulatory investigation, it should read the notice in full. Do not ignore deadlines. LSPC notices require protests to be filed within 25 days under Rule 19. Next, gather all records related to the subject. Do not contact the agency before reviewing the materials. Legal counsel should review the materials before responding.

What Type of Penalties Can Come From a Regulatory Violation in Louisiana?

The types of penalties that can come from a regulatory violation in Louisiana depend on the type of entity that commits the violation. Some industries, like utilities, face higher risk. In 2023, public power supported over 100,000 jobs nationwide. An enforcement action in a regulated sector like power can affect their service.

How Does the Administrative Hearing Process Work in Louisiana?

The administrative hearing process in Louisiana follows LPSC rules. The hearing process begins after a case is docketed. The hearing takes place before an administrative law judge. Some hearings settle early if everyone agrees. For energy and utility disputes, the outcome can affect public resource planning. In 2023, clean energy sources made up 41% of public generation.

Regain Control of Your Business

Regulatory trouble can threaten everything a business has built. Legal action can stop the damage. Knowing regulatory rules can improve the odds of success. Schedule a consultation with Ezell Law Firm, LLC, to move forward.