Legal Definitions - business record exception

The business record exception is a rule in legal proceedings that allows certain types of organizational records to be presented as evidence in court, even though they would normally be considered "hearsay." Hearsay generally refers to an out-of-court statement offered in court to prove the truth of the matter asserted, and it is usually not allowed because the person who made the statement cannot be cross-examined. However, the business record exception recognizes that records created routinely by organizations for their own operations are often reliable enough to be admitted.

For a record to qualify under this exception, it must meet several strict conditions designed to ensure its trustworthiness:

• It must have been made at or near the time of the event by, or from information transmitted by, someone with direct knowledge of the event.
• The record must have been kept in the regular course of a regularly conducted organizational activity. This means it's a standard practice, not something created just for a lawsuit.
• Making the record must have been a regular practice of that activity.
• The person presenting the record in court must be able to testify about the organization's record-keeping practices, or the record itself must be certified as authentic.
• The circumstances of the record's creation must not indicate a lack of trustworthiness. For instance, records made specifically in anticipation of litigation are often viewed with skepticism.

This exception applies broadly to records from various types of organizations, including for-profit businesses, non-profits, hospitals, and educational institutions.

Examples:

1. A Logistics Company's Shipping Manifests

Imagine a dispute between a furniture manufacturer and a shipping company over a damaged shipment. The manufacturer claims the damage occurred during transit, while the shipping company argues the furniture was already damaged when they picked it up. To prove their case, the shipping company wants to introduce its daily shipping manifests, which include notes from the driver upon pickup, detailing the condition of goods. These manifests are routinely filled out by drivers at the time of pickup, submitted to the central office, and kept as part of the company's standard operating procedure for tracking all shipments.

How it illustrates the term: These shipping manifests would likely qualify under the business record exception. The driver had direct knowledge of the furniture's condition at pickup, recorded it at that time as part of their job, and the manifests are a regular part of the shipping company's business operations. They were not created specifically for this lawsuit, making them trustworthy evidence of the furniture's condition upon collection.

2. A Hospital's Patient Medical Charts

Consider a medical malpractice lawsuit where a patient alleges negligence during a surgical procedure. The hospital wants to introduce the patient's medical chart, which contains entries made by nurses and doctors detailing vital signs, medications administered, observations, and surgical notes throughout the patient's stay. These entries are made immediately after observations or actions, are standard practice for patient care, and are critical for ongoing treatment.

How it illustrates the term: The patient's medical chart entries would typically fall under the business record exception. Each entry is made by medical professionals (nurses, doctors) who have direct knowledge of the patient's condition or treatment, recorded at the time of the event, and are an essential, routine part of providing healthcare. The systematic and regular nature of these records, crucial for patient safety and continuity of care, lends them a high degree of trustworthiness, making them admissible despite being out-of-court statements.

3. A University's Student Attendance Records

In a case involving a student's eligibility for a scholarship that requires consistent class attendance, the university needs to prove the student's attendance history. The university's registrar's office maintains digital attendance logs, where professors submit daily records for each class. These logs are updated regularly throughout the semester and are used for academic tracking, financial aid compliance, and student progress reports.

How it illustrates the term: These attendance records would likely be admitted under the business record exception. Professors, having direct knowledge, record attendance as a routine part of their teaching duties. The registrar's office then compiles and maintains these records in the regular course of the university's operations, not for any specific legal dispute. Their systematic creation and maintenance for administrative purposes contribute to their reliability.