Can I Record a Phone Call With My Business Partner in California and Use It in Court?

Last updated: November 2026. Reviewed by Pavel Kolmogorov, California business litigation attorney (State Bar No. 321018).

Not secretly. California requires the consent of all parties before a confidential communication is recorded, and a recording made in violation of Penal Code section 632 generally cannot be used as evidence in a civil case. The person recorded can also sue for $5,000 per violation or three times actual damages, whichever is greater. You may record if everyone on the call is told first. Kolmogorov Law, P.C. handles the civil side of these disputes for business owners in Orange County, Los Angeles, and across California.

Call (909) 235-6116 or contact us online to discuss how to prove what was said, or what to do about a call that was recorded.

California's all-party consent rule

People call California a two-party consent state. The statute says all parties. A person who intentionally, and without the consent of all parties to a confidential communication, uses a recording device to record it violates the law. The rule covers conversations in person as well as by telephone. (Pen. Code, § 632, subd. (a).)

A confidential communication is one carried on in circumstances that reasonably indicate a party wants it confined to the people in it. Public gatherings are excluded. So are settings where the parties may reasonably expect to be overheard or recorded. (Pen. Code, § 632, subd. (c).)

A private call between two business partners about money is a typical confidential communication. So is a closed-door meeting with an employee.

The statute is one part of the California Invasion of Privacy Act. Its application to websites and chat tools is covered on our CIPA lawsuits page.

Cell phone calls have their own rule

A second section applies when either end of the call is on a cellular or cordless phone. It prohibits recording such a communication without the consent of all parties, and its text does not ask whether the call was confidential. (Pen. Code, § 632.7, subd. (a).)

Most business calls today involve a cell phone. Arguments about whether a particular call was really private therefore matter less than owners hope.

What a secret recording costs you

Three things.

You generally cannot use it in a civil case. The statute says evidence obtained by recording a confidential communication in violation of it is not admissible in any judicial, administrative, legislative, or other proceeding, except to prove the violation itself. (Pen. Code, § 632, subd. (d).)

You can be sued. Anyone injured by a violation may recover the greater of $5,000 per violation or three times actual damages, and need not have suffered actual damages at all. (Pen. Code, § 637.2, subds. (a), (c).)

You hand the other side a weapon. The statute also carries criminal penalties, and a partner who learns of the recording can use that. A strong contract claim can be overshadowed by the plaintiff's own recording.

The exceptions are narrow

One party may record a confidential communication to obtain evidence reasonably believed to relate to the other party's commission of certain crimes. The list is short: extortion, kidnapping, bribery, a felony involving violence against the person, certain harassing calls, and domestic violence. (Pen. Code, § 633.5.)

A partner who lies about the books is not on that list. Even when a listed crime is suspected, the statute speaks of using the recording in a prosecution for that crime. The Court of Appeal has read that wording narrowly and upheld a ruling that kept a recording offered under this exception out of a civil case. (Geragos v. Abelyan (2023) 88 Cal.App.5th 1005, 1030-1031.) Do not rely on this exception without advice first.

Lawful ways to get the same proof

What the statute prohibits is secret recording. The California Supreme Court has explained that a party may record after informing everyone on the call, and anyone who objects may simply decline to continue. (Kearney v. Salomon Smith Barney, Inc. (2006) 39 Cal.4th 95, 117-118.)

So say it at the start: "I am recording this call so we have an accurate record." Many people keep talking.

Other tools work as well, often better.

A confirming email sent the same day: "On our call this morning you told me the distribution would be paid by the 15th."
Text and chat messages, which are already in writing.
Voicemails the other person chose to leave.
A second person on the call, introduced by name, who takes notes.
Video meetings held on a platform that announces the recording to every participant.

A confirming email that goes unanswered can be persuasive evidence. Our page on how to prove a breach of contract explains how judges and juries weigh this kind of record.

Calls across state lines, and calls where you were the one recorded

Many states allow one party to record. That does not make it safe to record a Californian. In the same decision, the Supreme Court applied California's rule to a firm in a one-party consent state that recorded calls with clients located here, while limiting the relief available for the firm's past conduct.

If you learn that you were recorded, keep the evidence of how you found out and get advice about a claim under section 637.2. If you are the one holding a secret recording, do not play it for anyone and do not delete it. Destroying evidence once a dispute is foreseeable creates a separate problem, described on our litigation hold page. Tell your lawyer, in a conversation that is itself protected by the attorney-client privilege.

Disputes between co-owners usually have better evidence than a recording anyway: bank records, emails, and the company's books. Our page on suing a business partner covers the claims, and our business litigation practice page covers the rest of our work.

What to bring to the first meeting

A timeline of the calls and meetings that matter, with dates and who took part.
Emails, texts, and chat messages with the other person.
Any recording, untouched, with a note of when and how it was made.
The partnership, operating, or employment agreement involved.

Frequently asked questions

My business partner admits things on the phone that he denies in writing. Can I record our calls in California and use them in court?

Only if he knows. California Penal Code section 632 requires the consent of all parties to record a confidential communication, and a recording made without it is generally inadmissible in a civil case. You may announce the recording at the start of the call. A better tool is usually a confirming email sent right after each call, which creates a written record he must answer or ignore.

I already recorded a call with my partner without telling him. What should I do with the recording now?

Do not share it, play it for others, or delete it. Under California law the recording is likely inadmissible, and the person recorded may sue for $5,000 per violation. Deleting it after a dispute has begun can be treated as destroying evidence. Give it to your lawyer and let counsel decide how to handle it.

Is California a two-party consent state?

Yes, in the sense people mean. California requires the consent of all parties, not just two, before a confidential communication is recorded, whether in person or by telephone. A separate statute covers calls involving cellular or cordless phones. Violations carry civil liability of $5,000 per violation or three times actual damages, and the recording generally cannot be used as evidence.

Can an employer record calls with employees or customers in California?

Yes, with notice. California's rule turns on consent, so a business that tells every participant at the outset that the call is recorded, and gives them the choice to continue, is generally on safe ground. Secretly recording a confidential conversation with an employee or customer exposes the business to statutory damages and generally keeps the recording out of evidence.

What if the other person is in a one-party consent state?

California law may still apply. The California Supreme Court applied the all-party consent rule to a firm in a one-party consent state that recorded calls with clients located in California. If you are the one recording from California, assume California's statute applies to you. The safe practice on any interstate call is to announce the recording.

Talk to a California business litigation attorney

If you need to prove what a partner, customer, or employee said, or you were recorded without consent, call (909) 235-6116 or contact us online. Kolmogorov Law, P.C. is located at 327 Magnet, Irvine, CA 92618, and represents businesses in Orange County, Los Angeles, and throughout California.

This page provides general information about California law and is not legal advice. Outcomes depend on the communication, the facts, and the court.