Legal Definitions - business-entry rule

The business-entry rule, also commonly known as the business-records exception, is a principle in evidence law that allows certain documents created in the ordinary course of business to be admitted as evidence in court. Generally, statements made outside of court (known as hearsay) are not allowed as evidence because they cannot be cross-examined for truthfulness. However, the business-entry rule recognizes that records made routinely and systematically by a business are often reliable enough to be presented in court.

For a record to qualify under this rule, it typically must meet several conditions:

• It was made at or near the time of the event it describes, by—or from information transmitted by—someone with knowledge of the event.
• It was kept in the regular course of a regularly conducted business activity.
• Making the record was a regular practice of that activity.
• All these conditions are shown by the testimony of the custodian or another qualified witness, or by a certification.
• The opponent of the evidence does not show that the source of information or the method or circumstances of preparation indicate a lack of trustworthiness.

The underlying rationale is that businesses rely on accurate record-keeping for their operations, making these records inherently trustworthy for legal proceedings.

Examples:

• Medical Records in a Malpractice Case: Imagine a patient sues a hospital for medical malpractice, claiming a nurse failed to administer a crucial medication at the correct time. The hospital's electronic medical records, showing the exact time and dosage of all medications given to the patient during their stay, would likely be admissible under the business-entry rule. These records are created routinely by medical staff (who have direct knowledge of the care provided) as part of the hospital's regular operations, and the hospital relies on their accuracy for patient safety and treatment. The entries are made contemporaneously with the events, fulfilling the reliability requirements of the rule.

• Shipping Manifests in a Cargo Dispute: A manufacturing company files an insurance claim for a shipment of goods that arrived damaged, and the insurer disputes the quantity of items originally loaded onto the truck. The shipping company's manifest, detailing the contents, quantity, and condition of the shipment at the time of loading, would be admissible. This document is created in the regular course of the shipping business by employees with knowledge of the cargo, at the time of loading. It's a standard business practice to create and maintain such manifests for tracking, billing, and liability purposes, making them reliable evidence of what was shipped.

• Equipment Maintenance Logs in a Workplace Injury: A construction worker is injured when a piece of heavy machinery malfunctions, and the worker alleges the equipment was not properly maintained. The construction company's maintenance log for that specific piece of machinery, detailing dates of inspections, repairs performed, and parts replaced, could be admitted as evidence. These logs are routinely kept by maintenance personnel as part of the company's operational and safety procedures, documenting work performed at the time it occurred. Their regular creation and reliance by the company for safety and operational efficiency lend them credibility under the business-entry rule.