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BNSF Railway says it didn't know about asbestos that's killed hundreds in Montana town

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BNSF Railway says it didn't know about asbestos that's killed hundreds in Montana town
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BNSF Railway says it didn't know about asbestos that's killed hundreds in Montana town

2024-04-20 08:10 Last Updated At:08:20

HELENA, Mont. (AP) — BNSF Railway attorneys told a Montana jury Friday that the railroad should not be held liable for the lung cancer deaths of two former residents of an asbestos-contaminated Montana town, one of the deadliest sites in the federal Superfund pollution program.

Attorneys for the company say the corporate predecessors of the railroad, owned by Warren Buffett’s Berkshire Hathaway conglomerate, didn't know the vermiculite they hauled over decades from a nearby mine was filled with hazardous microscopic asbestos fibers or that asbestos was dangerous.

BNSF attorney Chad Knight said the railroad could only be held liable if it could have foreseen the health hazards of asbestos based on information available decades ago when the alleged exposures happened.

“In the 50s, 60s and 70s no one in the public suspected there might be health concerns,” Knight said.

The case in federal civil court is the first of numerous lawsuits against the Texas-based railroad corporation to reach trial over its past operations in Libby, Montana. Current and former residents of the small town near the U.S.-Canada border want BNSF held accountable for its alleged role in asbestos exposure that health officials say has killed several hundred people and sickened thousands.

The seven-member jury met briefly Friday and planned to resume deliberations on Monday morning. They were instructed to decide if the railroad was at fault in the deaths and if so, the amount of damages to award to their estates. If the jurors find that the railroad should also face punitive damages, a separate hearing would determine that amount.

Looming over the proceedings is W.R. Grace & Co., a chemical company that operated a mountaintop vermiculite mine 7 miles (11 kilometers) outside of Libby until it was closed 1990. The Maryland-based company played a central role in Libby's tragedy and has paid significant settlements to victims.

U.S. District Court Judge Brian Morris has referred to the the chemical company as “the elephant in the room” in the BNSF trial. He reminded jurors several times that the case was about the railroad's conduct, not W.R. Grace's separate liability.

How much W.R. Grace revealed about the asbestos dangers to Texas-based BNSF and its corporate predecessors has been sharply disputed. The plaintiffs argued that railroad higher-ups were aware, but that workers on the ground in Libby were left out of the loop.

“We're here to make a party that accepts zero responsibility accept an appropriate amount of responsibility,” plaintiffs' attorney Mark Lanier said. “This is the fault of the bigwigs in the corporate office.”

The judge instructed the jury it could only find the railroad negligent based on its actions in the Libby Railyard, not for hauling the vermiculite.

The railroad said it was obliged under law to ship the vermiculite, which was used in insulation and for other commercial purposes. It said W.R. Grace employees had concealed the health hazards from the railroad.

Former railroad workers said during testimony and in depositions that they knew nothing about the risks of asbestos. They said Grace employees were responsible for loading the hopper cars, plugging the holes of any cars leaking vermiculite and occasionally cleaned up material that spilled in the rail yard.

The estates of the two deceased plaintiffs have argued that the W.R. Grace’s actions don’t absolve BNSF of its responsibility for failing to clean up the vermiculite that spilled in the railyard in the heart of the community.

Their attorneys said BNSF should have known about the dangers because Grace put signs on rail cars carrying vermiculite warning of potential health risks. They showed jurors an image of a warning label allegedly attached to rail cars in the late 1970s that advised against inhaling the asbestos dust because it could cause bodily harm.

Family members of Tom Wells and Joyce Walder testified that their lives ended soon after they were diagnosed with mesothelioma. The families said the dust blowing from the rail yard sickened and killed them.

In a March 2020 video of Wells played for jurors and recorded the day before he died, he lay in a home hospital bed, struggling to breathe.

“I’ve been placed in a horrible spot here, and the best chance I see at release — relief for everybody — is to just get it over with,” he said. “It’s just not something I want to try and play hero through because I don’t think that there’s a miracle waiting.”

The Environmental Protection Agency descended on Libby after the 1999 news reports. In 2009 it declared in Libby the nation’s first ever public health emergency under the federal Superfund cleanup program.

The pollution in Libby has been cleaned up, largely at public expense. Yet the long timeframe over which asbestos-related diseases develop means people previously exposed are likely to continue getting sick for years to come, health officials say.

Brown reported from Billings, Montana.

FILE - Environmental cleanup specialists work at one of the last remaining residential asbestos cleanup sites in Libby, Montana, in mid-September. BNSF Railway attorneys are expected to argue before jurors Friday, April 19, 2024, that the railroad should not be held liable for the lung cancer deaths of two former residents of the asbestos-contaminated Montana town, one of the deadliest sites in the federal Superfund pollution program. (Kurt Wilson/The Missoulian via AP, File)

FILE - Environmental cleanup specialists work at one of the last remaining residential asbestos cleanup sites in Libby, Montana, in mid-September. BNSF Railway attorneys are expected to argue before jurors Friday, April 19, 2024, that the railroad should not be held liable for the lung cancer deaths of two former residents of the asbestos-contaminated Montana town, one of the deadliest sites in the federal Superfund pollution program. (Kurt Wilson/The Missoulian via AP, File)

FILE - Dr. Lee Morissette shows an image of lungs damaged by asbestos exposure, at the Center for Asbestos Related Disease, Thursday, April 4, 2024, in Libby, Mont. BNSF Railway attorneys are expected to argue before jurors Friday, April 19, 2024, that the railroad should not be held liable for the lung cancer deaths of two former residents of the asbestos-contaminated Montana town, one of the deadliest sites in the federal Superfund pollution program. (AP Photo/Matthew Brown, File)

FILE - Dr. Lee Morissette shows an image of lungs damaged by asbestos exposure, at the Center for Asbestos Related Disease, Thursday, April 4, 2024, in Libby, Mont. BNSF Railway attorneys are expected to argue before jurors Friday, April 19, 2024, that the railroad should not be held liable for the lung cancer deaths of two former residents of the asbestos-contaminated Montana town, one of the deadliest sites in the federal Superfund pollution program. (AP Photo/Matthew Brown, File)

FILE - In this April 27, 2011, file photo, the entrance to downtown Libby, Mont., is seen. BNSF Railway attorneys are expected to argue before jurors Friday, April 19, 2024, that the railroad should not be held liable for the lung cancer deaths of two former residents of the asbestos-contaminated Montana town, one of the deadliest sites in the federal Superfund pollution program. (AP Photo/Matthew Brown, File)

FILE - In this April 27, 2011, file photo, the entrance to downtown Libby, Mont., is seen. BNSF Railway attorneys are expected to argue before jurors Friday, April 19, 2024, that the railroad should not be held liable for the lung cancer deaths of two former residents of the asbestos-contaminated Montana town, one of the deadliest sites in the federal Superfund pollution program. (AP Photo/Matthew Brown, File)

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Stock market today: Wall Street ticks higher to trim its losses for the week

2024-05-03 01:37 Last Updated At:01:40

NEW YORK (AP) — With a meeting by the Federal Reserve out of the way, U.S. stocks are ticking higher Thursday as Wall Street waits for reports on profit at one of its most influential stocks and on the health of the country's job market.

The S&P 500 was up 0.6% in afternoon trading, a day after swinging sharply when the Federal Reserve said it's likely delaying cuts to interest rates but not planning to hike them. The Dow Jones Industrial Average was up 221 points, or 0.6%, as of 1:19 p.m. Eastern time, and the Nasdaq composite was 1.1% higher.

The bond market was also relatively quiet ahead of Friday's report from the U.S. government on how many jobs employers added last month. It's one of the most highly anticipated economic reports each month, and economists expect it to show a slowdown in hiring.

Apple, meanwhile, will say how much it earned at the start of 2024 after trading ends Thursday. It's the latest to report among the group of stocks known as the “Magnificent Seven,” which drove the majority of the market's gains last year. Apple stock gained 1.9%.

Earnings reports from other companies were helping to drive the market. Qualcomm rose 9.6% after topping forecasts for profit and revenue in the latest quarter. The tech company also gave forecasted ranges for upcoming revenue and profit whose midpoints topped analysts’ expectations.

Carvana revved 30% higher after the used-car seller reported much better results for the latest quarter than analysts expected, boosted by better-than-forecast sales.

MGM Resorts International roared 2.7% higher after likewise topping forecasts for profit and revenue. It credited stronger traffic at MGM China, which ramped up as COVID-19 restrictions fell away in Macau.

They helped to offset a 14.3% drop for Etsy, which only roughly matched analysts’ expectations for results and revenue. It cited a “still challenging” environment where customers broadly are more selective about the non-essentials they’re buying.

DoorDash sank 11.5% after reporting a worse loss than expected. The company, which has been spending more on personnel and research and development, also gave a forecasted range for underlying earning trends in the current quarter whose midpoint fell short of analysts’ expectations.

Peloton Interactive swung from an early gain to a loss of 9.6% after it said it would cut roughly 400 jobs as part of a program to save $200 million in costs annually. It also said its CEO, Barry McCarthy, is stepping down. The company’s stock had fallen to a record low last week.

Linde was one of the heaviest weights on the S&P 500, sinking 5.5%, despite reporting stronger results for the latest quarter than expected. Revenue for the industrial gases and engineering company fell short of Wall Street’s expectations, as did the midpoint of its forecasted range for earnings in the current quarter.

In the bond market, which has been helping to dictate much of the stock market’s movements recently, yields were easing following some economic reports.

One showed that fewer U.S. workers applied for unemployment benefits last week than economists expected. It’s the latest signal that the job market remains solid despite high interest rates.

A separate, potentially more disappointing report suggested growth in how much U.S. workers produced per hour worked was weaker at the start of 2024 than economists expected. A measure comparing labor costs to productivity, meanwhile, rose by more than expected in the preliminary report. That could put upward pressure on inflation, which is one of the biggest fears on Wall Street.

The economy is in a tight spot, where the hope is that it remains strong enough to stay out of a recession but not so strong that it worsens the already stalled progress on inflation.

Stubbornly high readings on inflation this year are what pushed Federal Reserve Chair Jerome Powell to say on Wednesday that it will likely take “longer than previously expected” to get enough confidence inflation is under control before it can cut interest rates.

The Fed’s main interest rate has been sitting at its highest level since 2001, and cuts would release some pressure on the economy and financial markets.

After coming into the year forecasting six or more cuts to rates in 2024, traders are now largely betting on just one or two, if any, according to data from CME Group.

The yield on the 10-year Treasury fell to 4.58% from 4.63% late Wednesday. The two-year yield, which moves more closely with expectations for the Fed, fell to 4.89% from 4.97%.

In stock markets abroad, indexes were mixed across Asia and Europe. Hong Kong’s Hang Seng jumped 2.5%, while other markets in China were closed for a holiday.

AP writers Matt Ott and Zimo Zhong contributed.

Traders work on the floor at the New York Stock Exchange in New York, Wednesday, May 1, 2024. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange in New York, Wednesday, May 1, 2024. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange in New York, Wednesday, May 1, 2024. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange in New York, Wednesday, May 1, 2024. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange in New York, Wednesday, May 1, 2024. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange in New York, Wednesday, May 1, 2024. (AP Photo/Seth Wenig)

A person looks at an electronic stock board showing Japan's Nikkei 225 index at a securities firm Thursday, May 2, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person looks at an electronic stock board showing Japan's Nikkei 225 index at a securities firm Thursday, May 2, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person stands in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm as pedestrians are reflected on a glass window Thursday, May 2, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person stands in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm as pedestrians are reflected on a glass window Thursday, May 2, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person looks at an electronic stock board showing Japan's Nikkei 225 index at a securities firm Thursday, May 2, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person looks at an electronic stock board showing Japan's Nikkei 225 index at a securities firm Thursday, May 2, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

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