Appeals Court Overturns Ruling on BNSF Railway's Role in Asbestos Deaths

Judges side with railway company, saying it was required to accept contaminated material

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, a town where thousands have been sickened by asbestos exposure. The court sided with BNSF, which argued it was legally required to accept the vermiculite material for shipment and had been told it was safe.

Why it matters

This case is part of numerous lawsuits against BNSF over its past operations in Libby, where residents want the railway held accountable for its alleged role in the asbestos exposure that has killed several hundred people and sickened thousands in the small town.

The details

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

  • In 2024, a jury awarded $4 million each to the estates of two people who died in 2020.
  • The 9th U.S. Circuit Court of Appeals issued its opinion overturning the lower court's ruling on Tuesday, February 25, 2026.

The players

BNSF Railway

A Texas-based railroad corporation that has faced numerous lawsuits over its past operations in Libby, Montana.

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 and paying significant settlements to victims.

U.S. District Judge Brian Morris

The judge who had instructed the Helena jury that it could find BNSF negligent based on its actions in the Libby Railyard.

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What’s next

The case in Helena, Montana, was the first of numerous lawsuits against the Texas-based railroad corporation to reach trial over its past operations in Libby. Current and former residents of the small town near the U.S.-Canada border want BNSF held accountable for its alleged role in asbestos exposure that health officials say has killed several hundred people and sickened thousands.

The takeaway

This ruling highlights the ongoing legal battles between BNSF Railway and the residents of Libby, Montana, over the company's alleged role in the town's devastating asbestos crisis. The appeals court's decision to overturn the lower court's finding of BNSF's negligence raises questions about the railway's liability and the ability of Libby's residents to seek justice for the harm caused by the asbestos contamination.