Appeals Court Overturns Verdict Against BNSF Railway in Libby Asbestos Deaths

Ruling reverses $4 million awards to families of two people who died from asbestos exposure in Montana town.

Published on Feb. 25, 2026

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A federal appeals court has overturned a jury's 2024 verdict that found 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 was told it was safe by the mine's operator, W.R. Grace & Co.

Why it matters

The Libby asbestos contamination has been one of the worst public health disasters in U.S. history, with hundreds of deaths and thousands sickened. This ruling is a setback for current and former Libby residents seeking to hold BNSF accountable for its alleged role in the asbestos exposure.

The details

Following a civil trial, a jury in 2024 had 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. However, the appeals court sided with BNSF, which argued it was required by law to accept the vermiculite material for shipment and had been told it was safe by W.R. Grace, the mine's operator.

  • 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 from asbestos exposure.
  • On February 25, 2026, the 9th U.S. Circuit Court of Appeals overturned the 2024 jury verdict.

The players

BNSF Railway

A major freight railroad company that was found to have contributed to asbestos exposure in Libby, Montana, according to a 2024 jury verdict that was later overturned on appeal.

W.R. Grace & Co.

A chemical company that operated the vermiculite mine near Libby, Montana, until it closed in 1990. The company played a central role in Libby's asbestos tragedy and paid significant settlements to victims, but avoided greater liability after declaring bankruptcy.

U.S. District Judge Brian Morris

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

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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)

What’s next

The case in Helena, Montana, was the first of numerous lawsuits against BNSF Railway over its past operations in Libby. Current and former residents of the small town near the U.S.-Canada border are expected to continue their efforts to hold the railroad accountable for its alleged role in the asbestos exposure that has devastated their community.

The takeaway

This ruling is a setback for Libby residents seeking justice, but the fight to hold BNSF Railway accountable for its alleged role in the town's asbestos crisis is far from over. The case highlights the ongoing challenges faced by communities impacted by corporate negligence and the need for stronger regulations and enforcement to prevent such public health disasters.