Libby, Montana — Authorities have closed the Center for Asbestos Related Disease, a crucial screening facility in this small town grappling with the health repercussions of asbestos exposure from a nearby mine. The abrupt closure followed a court order granting the railroad BNSF the right to seize the clinic’s assets to satisfy a legal judgment.
On Wednesday, the Lincoln County Sheriff’s Office enforced the closure of the clinic, which has been instrumental in providing care to the local community, where around 3,000 residents live under the shadow of long-standing asbestos contamination. The area is notorious for its history with asbestos dust, which has plagued the health of residents for decades.
BNSF Railway has faced scrutiny over its role in exacerbating the pollution problem in Libby. Courts have ruled that the railroad contributed to the contamination by transporting materials from the mine that contained asbestos. The railway company is also facing multiple lawsuits from residents suffering from asbestos-related illnesses in Libby and neighboring regions.
In a separate case, BNSF successfully argued in a 2023 lawsuit that the clinic had fraudulently enrolled certain patients in government benefits programs despite knowing they were not legitimately ill. The court found that out of more than 2,000 diagnoses made by the clinic, 337 were determined to be false. This lawsuit was initiated to ensure that the federal government, which provides specialized Medicare services for Libby’s asbestos victims, was not defrauded of resources.
As a result of the fraud ruling, BNSF is entitled to a share of a $6 million judgment against the clinic. After considering legal fees, court costs, and accrued interest, the railroad claims it is owed approximately $3.1 million.
BNSF spokesperson Kendall Kirkham Sloan mentioned that the court’s decision regarding damages establishes the legal framework for recovery, emphasizing that the process was decided in accordance with existing laws.
Tracy McNew, the clinic’s Executive Director, expressed grave concerns about the impact of the closure on public health in Libby. She emphasized that fewer screenings for asbestos-related health issues could significantly affect the community, where continued vigilance is necessary for identifying and treating affected individuals.
“CARD is dedicated to our patients and the Libby community and is committed to fighting for our ability to reopen as swiftly as possible,” McNew stated.
The clinic has served the Libby area for over two decades, providing essential health screenings and ongoing treatment for asbestos exposure. Despite declaring bankruptcy after the fraud ruling, it continued operations while navigating a settlement in bankruptcy court that involved the federal government and BNSF.
James “Andy” Patten, the attorney for the clinic’s bankruptcy case, contended that BNSF’s efforts to enforce the fraud judgment conflicted with the bankruptcy settlement sanctioned by a federal court.
Sloan, representing BNSF, chose not to comment on the specifics of the bankruptcy settlement.
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