Insurer blocks air crash law suit

FAMILIES of the victims of one of Australia’s worst aviation disasters have been blocked by insurance giant QBE from long- running legal action in the United States.

Fifteen people died in the 2005 Lockhart River crash on Cape York but relatives yesterday told News Corp Australia they were “shocked” and “appalled” by a court order to end a nine- year- long lawsuit in the US against part- owners of the ill- fated Cairns- based Aero Tropics airline.

Lawyers for QBE obtained an order from the Supreme Court in Queensland restraining the Lockhart River families from taking any action other than to dismiss the damages claim before the US courts.

Twelve years on from the tragedy, the father of police officer Sally Urquhart, who died in the May 6, 2005 crash, said families had been victims of “bully boy tactics” and “intimidation” by Australia’s biggest insurance company.

Brisbane school teacher Shane Urquhart said none of the families or their lawyers were notified of the latest legal action before the court order.

QBE provides insurance to airlines, aircraft, airports, pilots, refuellers, baggage handlers and maintenance operators.

Reverend Mary Eseli’s son, Fred Bowie, and sister- in- law, Mardie Bowie, were among six victims of the air crash from the tiny indigenous communities of Injinoo and Bamaga at the tip of Cape York.

“It has been an open wound in our hearts that has never healed,” the 63- year- old said.

A QBE spokeswoman said any action should be brought in Queensland not Missouri, where the doomed aircraft was stored before it was bought by the Australian owners.

“The accident occurred in Queensland, all evidence is in Australia,” she said.

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

“QBE is presently seeking orders in the Supreme Court of Queensland to ensure that further claims for compensation are heard in Queensland.”