Business is often regulated. Certain types of businesses tend to have more regulation. For example, businesses that deal with dangerous, hazardous or explosive materials usually have special federal oversight. But while public safety is always a concern, when contracts are in place, can regulation ever reach too far?

Explo Systems Inc. is a Louisiana company that had a federal military contract to decommission military propelling charges. They had a license to operate their business on a military base in a rented space. Despite that license, the Louisiana police were ordered to put a stop to their business because of a belief that it was inadequately storing military propellant.

Explo is seeking legal action since they are unable to honor the contracts they had formed. Explo claims the material it has stored is not volatile and has filed seeking a permanent injunction to the police action that is interrupting their business and damages as well. The state police and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives are in charge of the licenses at issue with Explo.

Rules and regulations at the local, state and federal level often affect businesses. Those businesses dealing with hazardous or explosive materials are especially strictly regulated. The difficulty is finding harmony between all of the various interests. Also needing to be taken into account is the public interest. Regulations exist to keep processes safe. Sometimes the government can overstep their reach and this can lead to business litigation.

Business is often regulated at the local, state and federal level. Certain types of businesses have more oversight due to the types of materials they handle especially if they are hazardous or explosive. A business has contracts to honor and orders to fulfill and if regulation is overstepping its practices then business litigation might occur. Knowing your rights in a business litigation situation can help find relief and keep your business running.

Source: shreveporttimes.com, “Explo files suit against state police,” Vickie Welborn June 9, 2013