Appeals Court Overturns Asbestos Verdict Against BNSF Railway

Ruling reverses $8 million judgment in deaths linked to Montana mining town contamination.

Published on Feb. 25, 2026

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A federal appeals court has overturned a judge's finding that BNSF Railway contributed to the deaths of two people in Libby, Montana, where thousands have been sickened by asbestos exposure from a vermiculite mine. The 9th U.S. Circuit Court of Appeals sided with BNSF, which argued it was required to accept the vermiculite material for shipment and had been told it was safe.

Why it matters

This ruling is a setback for current and former Libby residents seeking to hold BNSF accountable for its alleged role in the asbestos contamination that has devastated the small Montana town. The case was seen as a test for numerous other lawsuits against the railroad over its past operations in Libby.

The details

In 2024, a jury awarded $4 million each to the estates of two people who died in 2020, blaming the railroad for allowing asbestos-contaminated mining material to accumulate in a rail yard in downtown Libby. But the appeals court sided with BNSF, which argued it was required by law to accept the vermiculite material and was told it was safe.

  • The vermiculite mine near Libby shut down and stopped shipping the contaminated mineral in 1990.
  • In 2009, the EPA declared Libby the nation's first ever public health emergency under the federal Superfund cleanup program.
  • In 2024, a jury awarded $4 million each to the estates of two people who died in 2020.

The players

BNSF Railway

A major railroad corporation that was found to have contributed to asbestos exposure in Libby, Montana, though a federal appeals court has now overturned that ruling.

W.R. Grace & Co.

A chemical company that operated the vermiculite mine near Libby until it closed in 1990, playing a central role in the town's asbestos tragedy, though the company avoided greater liability after declaring bankruptcy.

Environmental Protection Agency (EPA)

The federal agency that descended on Libby after 1999 news reports of illnesses and deaths, and in 2009 declared the town the nation's first ever public health emergency under the Superfund cleanup program.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The case in Helena, Montana, was the first of numerous lawsuits against BNSF over its past operations in Libby. Current and former residents of the small town near the U.S.-Canada border will likely continue to pursue legal action to hold the railroad accountable.

The takeaway

This ruling is a setback for Libby residents seeking justice, but the fight to hold BNSF responsible for its alleged role in the asbestos contamination that has devastated their community is far from over. The case highlights the ongoing challenges faced by towns impacted by industrial pollution and the uphill battle to seek accountability from powerful corporations.