Business records exception

The business records exception to the U.S. hearsay rule is based on Rule 803(6) of the Federal Rules of Evidence (FRE). It is sometimes referred to as the business entry rule.

Business records, for the purposes of the exception, are any writings or records of acts, events, conditions, opinions, or diagnosis, made at or near the time by, or from information transmitted by, a person with knowledge are admissible if kept in the regular course of business and if it was the regular course of business to make that record, unless the source of information or circumstances of preparation indicate a lack of trustworthiness.

Business is used in Rule 803(6) to mean any business, institution, association, profession, or occupation, regardless of whether or not it is conducted for profit. Therefore, such records could conceivably include those of religious and charitable organizations, hospitals, schools, and even criminal organizations.

The basic rationale for the exception is that employees are under a duty to be accurate in observing, reporting, and recording business facts. The underlying belief is that special reliability is provided by the regularity with which the records are made and kept, as well as the incentive of employees to keep accurate records (under threat of termination or other penalty). The exception functions to allow the record to substitute for the in-court testimony of the employees, but it can only substitute for what the employee could testify about. The availability of the declarant (the employee whose testimony is being replaced by the record) is immaterial for the purposes of this exception.

It must be apparent to the judge that the record was made in the regular course of business, i.e., that it was customary practice to make such an entry and that the entrant had a duty to record it (either by law or by the terms of his employment). The record must have been made at or near the time of the act, event, or transaction at issue. Furthermore, the record must consist of matters either within the personal knowledge of the entrant or within the personal knowledge of someone with a duty to transmit the information to the entrant.

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