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Ninth Circuit Overturns $8 Million Libby Asbestos Verdict Against BNSF

The panel said the railroad is shielded by the common carrier exception to strict liability.

FILE - In this April 27, 2011, file photo, the entrance to downtown Libby, Mont., is seen. AP Photo/Matthew Brown, File)
FILE - The town of Libby, Mont., is seen Feb. 17, 2010. (AP Photo/Rick Bowmer, File)

Overview

  • A Ninth U.S. Circuit Court of Appeals panel reversed a 2024 Helena jury verdict against BNSF, ruling the railroad is not strictly liable under Montana law for transporting vermiculite from Libby.
  • Judge Morgan Christen wrote the majority opinion, with Judge Consuelo Callahan concurring separately to state that the Interstate Commerce Commission Termination Act preempts the plaintiffs’ strict‑liability claims.
  • The 2024 jury had awarded $4 million each to the estates of Tom Wells and Joyce Walder, who died in 2020 after developing mesothelioma linked to asbestos exposure.
  • Plaintiffs argued asbestos‑contaminated vermiculite accumulated at BNSF’s Libby railyard, while BNSF maintained it was required to accept the shipments and had been told the product was safe, a defense credited by the court.
  • The panel declined to certify questions to the Montana Supreme Court, and plaintiffs’ counsel said they disagree with the decision and are evaluating options for further appeal.