Emotion detection in conversations is a necessary step for a number of applications, including opinion mining over chat history, social media threads, debates, argumentation mining, understanding consumer feedback in live conversations, etc. Currently, systems do not treat the parties in the conversation individually by adapting to the speaker of each utterance. In this paper, we describe a new method based on recurrent neural networks that keeps track of the individual party states throughout the conversation and uses this information for emotion classification. Our model outperforms the state of the art by a significant margin on two different datasets.