Can bank records be admitted under the residual hearsay exception? State v. Buttars Explained

In State v. Buttars, the Utah Court of Appeals addressed whether bank records could be admitted under the residual hearsay exception when they fail to meet the requirements of the business records exception. The case provides crucial guidance for practitioners on the proper use of hearsay exceptions in criminal trials.

Background and Facts

David Buttars operated two technology companies, Ellipse and MovieBlitz, raising over $815,000 from investors for kiosk technology development. Investigators obtained bank records through subpoenas showing Buttars used investor funds for personal expenses like groceries, restaurant bills, and child support. When the State sought to admit the records at trial, Frontier Bank had provided records without proper custodial certificates, while Chase Bank had provided adequately certified records.

Key Legal Issues

The central issue was whether bank records inadmissible under Rule 803(6) (business records exception) due to missing custodial certificates could instead be admitted under Rule 807 (residual exception). The trial court ruled the Frontier records were inadmissible under Rule 803(6) but admitted them under Rule 807, along with expert summaries based on those records.

Court’s Analysis and Holding

The Court of Appeals reversed, holding that when records specifically fit within an established hearsay exception, parties cannot circumvent that exception’s requirements by using the residual rule. The court emphasized that the business records exception is the specific rule governing bank records, while the residual exception is a “catchall provision” for rare cases where statements don’t fit recognized exceptions. The court noted the State conceded it could have called witnesses or obtained proper certification but chose not to, making this an inappropriate case for the residual exception.

Practice Implications

This decision reinforces that the residual exception cannot serve as an alternative route when specific exceptions apply but their requirements aren’t met. The court found prejudicial error because the inadmissible Frontier records constituted the bulk of evidence supporting the securities fraud convictions. Practitioners should ensure proper foundation for business records through witness testimony or Rule 902(11) certification rather than attempting to use the residual exception as a backup plan.