A well-known asbestos screening clinic in Libby, MT – one of the hotbeds of asbestos mining and exposure in the United States – closed last week.
The Center for Asbestos-Related Disease, often shortened to CARD, closed after a lengthy court battle that ended with the clinic ordered to pay a railroad company more than $3 million in damages. The judgement was based on allegations of fraudulent benefits claims for Libby residents.
The clinic filed for bankruptcy in August 2023. Filing for bankruptcy allowed CARD to operate while filing an appeal. However, the clinic closed as part of the payment, putting a significant snag in the strategy.
History of the CARD Clinic and Asbestos in Libby, MT
CARD is a national clinic dedicated to addressing health care issues associated with Libby asbestos. The nonprofit organization provides treatment, health screenings and other benefits to people impacted by asbestos exposure caused by Libby mining operations. The clinic operated for more than 20 years and served as a symbol of the damage of asbestos in Libby.
During the 20th century, a vermiculite mine operated in the town of approximately 3,000 people. This mine included asbestos, which was a mineral prized for durability and resistance to heat. Miners collected asbestos, which was shipped across the country for industrial and commercial uses. Asbestos was part of construction, insulation and electrical work, along with building automobiles, military ships, and aircraft.
Exposure to asbestos can lead to inhaling or swallowing loose fibers, which can cause a rare cancer called mesothelioma. This cancer forms in the thin tissue linings of the lungs and abdominal cavity. Approximately 3,000 people in the U.S. develop this cancer each year, and the average survival time after diagnosis is 1 year.
Exposure to asbestos can also cause lung cancer, ovarian cancer, and a deadly lung-scarring disease called asbestosis.
Miners in Libby were exposed daily to asbestos. Residents were also exposed to the toxic air. The result of the mining was mounds of asbestos dust parked throughout the town. The rates of asbestos-related diseases – mesothelioma, lung cancer, ovarian cancer and asbestosis – were much higher in Libby compared to other towns with similar populations.
CARD offered screenings to help detect and treat people with signs of asbestos-related diseases.
Why the CARD Clinic Closed
Courts in Montana found the BNSF Railway Company – among many other companies – responsible for the pollution of Libby when it brought contaminated material from the mine through the town. The railway faces asbestos and mesothelioma lawsuits from victims in Montana.
However, the BNSF Railway Company filed a lawsuit on behalf of the federal government claiming the clinic committed fraud by signing some residents up for government benefits despite not being sick. Courts found that 337 of more than 2,000 cases brought forward in the lawsuit were false.
The railway sued under a legal provision that allowed it to bring the civil suit on behalf of the federal government. It could only do so after federal officials declined to take the case.
According to court documents, CARD has certified more than 3,400 people with asbestos-related diseases and the clinic has received more than $20 million in federal funding.
The current amount owed to the railroad company is approximately $3.1 million. According to ABC News, the clinic declared bankruptcy after the judgment and kept operating while reaching a settlement. The clinic operated for more than 18 months while in bankruptcy.
According to Montana Public Radio, the Lincoln County District Court ordered the seizure of the CARD Clinic building to pay the judgement amount. The clinic stated on its Facebook page that the closure was temporary.
Montana U.S. Attorney Kurt Alme’s office said the railway is not authorized to collect money on behalf of the federal government and the Lincoln County District Court has no legal authority to seize the property. The reason for the attorney’s objection is the CARD clinic receives federal funding.
Sources & Author
- Libby asbestos clinic shuttered after court order. 8KPAX. Retrieved from: https://www.kpax.com/news/western-montana-news/libby-asbestos-clinic-shuttered-after-court-order. Accessed: 05/12/2025.
- Asbestos clinic forced to close in Montana town where thousands sickened by dust. ABC News. Retrieved from: https://abcnews.go.com/Business/wireStory/asbestos-clinic-forced-close-montana-town-thousands-sickened-121623070. Accessed: 05/12/2025.
- Court settlement costs force closure of Libby asbestos clinic. Montana Public Radio. Retrieved from: https://www.mtpr.org/montana-news/2025-05-09/court-settlement-costs-force-closure-of-libby-asbestos-clinic. Accessed: 05/12/2025.
- Montana health clinic must pay nearly $6 million over false asbestos claims, judge rules. PBS. Retrieved from: https://www.pbs.org/newshour/health/montana-health-clinic-must-pay-nearly-6-million-over-false-asbestos-claims-judge-rules. Accessed: 08/24/2023.
- Montana clinic files for bankruptcy following $6 million judgment over false asbestos claims. Associated Press. Retrieved from: https://apnews.com/article/asbestos-clinic-false-claims-bankruptcy-ce194fae7b5c03ed53bee9a234c29b79. Accessed: 08/24/2023.
- U.S. Attorney: court overreached in Libby asbestos clinic seizure. Montana Public Radio. Retrieved from: https://www.mtpr.org/montana-news/2025-05-15/u-s-attorney-court-overreached-in-libby-asbestos-clinic-seizure. Accessed: 05/16/2025.
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