QBE has been accused of intimidating families of victims of the Lockhart River air crash and forcing them to drop their US compensation claims.

All 15 people on board were killed when an aircraft approaching Lockhart River Airport in Far North Queensland struck a ridge in 2005.

The victims’ families pursued compensation in the US after claiming QBE, which insured both the operator and owner of the aircraft, “refused to pay any compensation”.

The families believe the aircraft owners were negligent in failing to equip it with an enhanced ground proximity warning system, which would have alerted the pilots to approaching terrain.

Now, a court order has been sought in the Supreme Court of Queensland, with QBE providing legal representation, to ensure the compensation claims are heard in Queensland, not the US.

US-based attorney for the families Floyd Wisner, of Wisner Law Firm, says QBE’s actions “intimidated the families into dismissing their claim”.

He says the insurer “intentionally interfered with a US proceeding” and could be held in contempt of court.

A QBE spokesman told insuranceNEWS.com.au there has been no action in the US proceedings for almost a year, and it is right for any further hearings to take place in Queensland.

“QBE has already paid compensation and costs, where appropriate, in respect of the claims by relatives of the deceased passengers against the operator of the aircraft,” the spokesman said.

“The relatives of the deceased pilots and [of] all but one of the deceased passengers commenced a separate proceeding in the Circuit Court of Greene County, Missouri, against Lambert Leasing, the vendor of the aircraft, the owner/lessor of the aircraft, and Les Wright, who was the principal and chief pilot of Transair.

“The only connection with Missouri was that the aircraft had been stored there prior to its operation in Australia. [The owners of the aircraft] and the estate of the late Mr Wright are seeking orders in the Supreme Court of Queensland to ensure that further claims for compensation are heard in Queensland.

“Given the accident occurred in Queensland, the proceedings involve Australian residents and an Australian company and the estate of an Australian resident, all evidence is in Australia, the accident and the proceedings have no connection with Missouri, and Australian law would apply even if heard in Missouri, it is clearly more appropriate for the proceeding to be heard and determined in the Supreme Court of Queensland.

“The relatives will still be able to pursue the case in Queensland.”

QBE says there is no contempt, as the application is not contrary to any US court order or ruling.