Business Records Exception

The business records exception is a hearsay rule that allows records made and kept in the regular course of an organization's business, such as invoices, purchase orders, payroll records and medical charts, to be used as evidence. The record must have been made at or near the time of the event by someone with knowledge.

Origin

The exception grew from the common-law shop-book rule for merchants' account books. It is now codified in Federal Rule of Evidence 803(6) and similar state rules. A custodian or other qualified witness can lay the foundation, and federal rules also allow a written certification instead of live testimony.

Significance in Asbestos Context

Business records are a backbone of asbestos cases. Purchase orders and invoices can show that a company's products were shipped to a particular shipyard, plant or job site; employment and union records can place a worker there; and hospital records document the diagnosis. Company records such as plant medical files, dust counts and sales data may also qualify. The exception does not apply if the source of the information or the way the record was prepared shows a lack of trustworthiness, and opinions within records can be challenged. Social Security earnings records and pension records, which list employers by year, are often a starting point for reconstructing work history.

Example Sentence

Invoices produced from the supplier's files, admitted under the business records exception, showed asbestos cement pipe delivered to the job site in 1964.

Related Terms

Hearsay Exception, Authentication, Product Identification, Occupational History, Ancient Documents Rule, Discovery

Notes

• Request your Social Security earnings statement; it lists employers by year and helps rebuild a work history.
• Keep pay stubs, union cards, pension statements and ship or plant assignment records.