The Asbestos Crisis in Libby Takes a New Turn: CARD Faces Financial Ruin

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News Summary

CARD, a clinic for asbestos-related diseases in Libby, faces financial ruin after a $3.1 million judgment in a lawsuit by BNSF Railway.

The Asbestos Crisis in Libby Takes a New Turn: CARD Faces Financial Ruin

The Center for Asbestos Related Disease, Inc. (CARD), a nonprofit clinic based in Libby, Montana, faces an uncertain future as a writ of execution for $3.1 million was issued against it following a judgment in favor of BNSF Railway. The writ was executed by the Lincoln County Sheriff’s Office on May 7, 2025, and stems from a lawsuit that accused CARD of submitting fraudulent claims for years.

The Legal Battle Unfolds

On February 12, 2025, a writ was filed in the Lincoln County District Court, and the Sheriff’s Office received it on March 5, 2025. The legal showdown between CARD and BNSF Railway has sent shockwaves through the community, which has already been grappling with the devastating effects of asbestos exposure since the controversial vermiculite mining operations were established in the early 20th century.

BNSF Railway, owned by billionaire Warren Buffett, claimed that CARD had misrepresented and incorrectly filed claims, leading to a jury ruling against the clinic. In September 2024, CARD lost an appeal regarding a prior jury’s $6 million judgment, with the federal jury confirming that CARD presented false claims on 337 occasions, including violations even after November 2015.

CARD’s Impact and Response

CARD was established in 2000 and has been a lifeline for thousands in Libby exposed to Libby amphibole asbestos. Originally a department of St. John’s Lutheran Hospital, it transitioned to an independent nonprofit in April 2003 and relocated to its current site in 2004. However, with approximately 19 employees now facing potential layoffs and the clinic’s financial situation precarious, concerns are mounting regarding community health.

BNSF’s Involvement in Mesothelioma Cases

The railway giant has historically been implicated in the deaths of Libby residents Tom Wells and Joyce Walder, both diagnosed with mesothelioma after living in close proximity to the railyard. Their tragic losses have only amplified the scrutiny on BNSF’s role in the local asbestos crisis.

The clinic’s Executive Director, Tracy McNew, directed local media to halt advertisements amid the crisis, arguing that the execution of the writ lacked Bankruptcy Court approval. The clinic’s bank accounts and property have been targeted for seizure, further threatening its ability to deliver essential services.

Asbestos Struggles Continue

Asbestos exposure has led to severe health crises in Libby, where over 400 deaths have been attributed to asbestos-related diseases. CARD initially filed for Chapter 11 bankruptcy in August 2023, a move that illustrated the clinic’s difficult financial landscape exacerbated by ongoing legal battles.

Alongside the fraudulent claim lawsuit, CARD faces additional scrutiny with a separate local lawsuit filed in October 2024, alleging medical malpractice and improper prescribing of opioids. This ongoing drama highlights the clinic’s struggle to adhere to diagnostic requirements for asbestos-related illnesses and maintain its credible healthcare services.

The CDC Grant: A Glimmer of Hope

Despite these challenges, CARD has secured a vital grant from the CDC for asbestos health screening, which began on September 1, 2024, and is set to last until August 2029. This funding accounts for approximately 80% of the clinic’s $3 million budget, showcasing the continued importance of its services for residents grappling with the lingering effects of asbestos exposure.

A Community on Edge

As the future of CARD hangs in the balance, and with BNSF Railway’s influence looming large, residents in Libby remain anxious about their health and the availability of crucial medical services. The ongoing cleanup efforts from the EPA, following the area’s designation as a Superfund site since 2002, have yielded little reassurances for a community still bearing the scars of a devastating industrial legacy.

With all eyes on CARD, the unfolding situation raises critical questions about accountability and the long-term impact of exposure to asbestos fibers, reminding us that the battle against this silent killer is far from over.