What Is Hearsay? Why "My Cousin Told Me" Won't Win Your Case
Quick answer
Hearsay is an out-of-court statement repeated in court to prove that what it says is true — for example, "my cousin told me he never paid". Courts in common-law systems often exclude it because the person who originally said it can't be cross-examined. There are important exceptions, such as a party's own statements and business records.
The story in the video
Lucy takes Fontaine to court over an unpaid €10,000 invoice. Her witness, Dave, proudly tells the judge: "My cousin told me he never paid!" Objection — hearsay. Dave learns the hard way that repeating what someone else said doesn't prove it. Lucy wins anyway — thanks to Fontaine's own email and her business records.
The legal test for hearsay
A statement is hearsay when it is:
- Made outside the current court hearing
- Repeated in court by someone else or in a document
- Offered to prove that what it says is true
All three matter. If the statement isn't being used to prove its truth, it isn't hearsay.
Why courts exclude hearsay
The problem with "my cousin told me" is that the cousin isn't in court. Nobody can ask how he knows, whether he was mistaken, or whether he has a reason to lie. Cross-examination is how courts test evidence, and hearsay escapes it. That makes it less reliable — so in many common-law systems, it is excluded unless an exception applies.
When the same words are not hearsay
The same words can be fine if they're used for another purpose. If a witness heard someone shout "Pay Lucy!", that can be used to show that the words were said — for example, that the debtor was told to pay — rather than to prove that the money was owed. The test is always the purpose for which the statement is offered.
Key exceptions
- A party's own words: what the debtor himself said or wrote — such as an email admitting the debt — can be used against him.
- Excited utterances: a spontaneous statement made under the stress of a startling event.
- Business records: invoices, delivery notes and accounts kept in the ordinary course of business.
These rules follow the US-style common-law model. In England and Wales, hearsay is generally admissible in civil cases, subject to notice rules and the court deciding how much weight to give it. Civil-law courts usually have no strict hearsay rule and assess all evidence freely.
What this means for unpaid invoices
In debt claims, documents beat stories. The strongest evidence is usually written: the contract or order, delivery proof, the invoice, reminders, and anything the debtor wrote acknowledging the debt or asking for more time. Keep it all — it's what wins Lucy's case.
How Collecty can help
Collecty builds every case on documents, not hearsay, and recovers B2B debts in 190 countries. No win, no fee.
Related resources
Frequently asked questions
What is hearsay in simple terms?
It is repeating in court what someone else said outside court, in order to prove that it is true.
Why is hearsay not allowed in court?
Because the person who originally made the statement can't be cross-examined, so the court can't test whether it is accurate or honest.
Is an email from the debtor hearsay?
Under US-style rules, a party's own statement offered against them is not excluded as hearsay. An email in which the debtor admits the debt is strong evidence.
Are business records hearsay?
They may technically be hearsay, but there is a widely recognised exception for records kept in the regular course of business, such as invoices and delivery notes.
Does the hearsay rule apply in civil cases?
It depends on the country. US courts apply it in civil and criminal cases. In England and Wales, hearsay is generally admissible in civil cases, subject to safeguards. Civil-law countries usually have no strict rule.
What is an excited utterance?
A spontaneous statement made while under the stress of a startling event. Many common-law systems allow it as an exception because people rarely invent statements in that moment.
This guide is general information, not legal advice. Rules vary by country — speak to a qualified lawyer about your situation.
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