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Federal Court Overturns Judgment Blaming BNSF Railway for Asbestos Deaths in Montana
Appeals court rules BNSF was protected as a 'common carrier' in transporting contaminated vermiculite material through Libby, Montana
Published on Feb. 25, 2026
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A federal appeals court has overturned a $4 million judgment against BNSF Railway that had found the company contributed to the deaths of two people in Libby, Montana, where thousands have been sickened by asbestos exposure. The court ruled that BNSF was protected as a 'common carrier' under federal law and was required to transport the vermiculite material, even though it was later found to be contaminated with asbestos.
Why it matters
This ruling sets an important legal precedent around the liability of railroads that transport hazardous materials, even if they were unaware of the dangers. It highlights the challenges of holding large corporations accountable for environmental disasters like the asbestos contamination in Libby, which has devastated the small Montana town for decades.
The details
In 2024, a jury had awarded $4 million each to the estates of two people who died in 2020, finding that BNSF Railway was negligent in allowing asbestos-contaminated mining material to accumulate in a rail yard in downtown Libby. However, the 9th U.S. Circuit Court of Appeals sided with BNSF, ruling that the company was required by federal law to accept the vermiculite material for shipment and had been told it was safe. The court said BNSF was 'protected from strict liability by the common carrier exception' since it was operating as a 'common carrier' offering services to the general public.
- In 2024, a jury awarded $4 million each to the estates of two people who died in 2020.
- On February 25, 2026, the 9th U.S. Circuit Court of Appeals overturned the 2024 judgment against BNSF Railway.
The players
BNSF Railway
A major railroad company that was found liable in a 2024 civil trial for contributing to asbestos-related deaths in Libby, Montana, but had the judgment overturned on appeal.
Joyce Walder
One of two people whose estate was awarded $4 million in the 2024 civil trial against BNSF Railway.
Thomas Wells
One of two people whose estate was awarded $4 million in the 2024 civil trial against BNSF Railway.
W.R. Grace & Co.
A chemical company that operated the vermiculite mine near Libby, Montana, which was the source of the asbestos contamination. W.R. Grace avoided greater liability after declaring bankruptcy.
Judge Brian Morris
The U.S. District Judge who had instructed the 2024 jury that it could find BNSF Railway negligent based on its actions in the Libby Railyard.
What they’re saying
“The dangerous condition here — accumulated asbestos dust — arose solely from BNSF's operation as a common carrier executing its federally mandated duty to transport vermiculite.”
— Judge Morgan Christen
What’s next
The attorneys for the estates of Joyce Walder and Thomas Wells say they are evaluating options for an appeal of the federal appeals court's decision.
The takeaway
This case highlights the challenges of holding large corporations accountable for environmental disasters, even when their actions contributed to the harm. The 'common carrier' legal protection shielded BNSF Railway from liability, despite the devastating impact the asbestos contamination had on the Libby community.
