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Michael Landry and his partners in a joint venture with a Danish firm are suing Belgium-based insurer QBE Europe SA/NV for more than $18 million, claiming the insurer failed to resolve their dispute in good faith. The lawsuit, filed Monday in Massachusetts federal court, centers on QBE's handling of a breach of contract case involving the construction of vessels for the wind farm industry.

Michael Landry $18M Trial : The Dispute

The plaintiffs—Michael Landry, Treadwell Franklin Infrastructure Capital (TFIC), and Patriot Offshore Marine Services—allege that QBE mishandled their insurance claims related to a failed joint venture with World Marine Offshore (WMO), a Danish company. The venture, launched in 2020, aimed to build support vessels for wind farms, with deals in place to construct vessels for General Electric and Vineyard Wind. However, WMO backed out of the agreement in 2022, leading to significant financial losses for Landry and his partners.

Allegations Against QBE Europe

The lawsuit claims that QBE Europe, instead of offering a reasonable settlement, wasted limited policy funds on a motion to dismiss the breach of contract case, a move the plaintiffs argue was both pointless and unsuccessful. Furthermore, the plaintiffs accuse QBE of unfairly leveraging its settlement stance by arguing that a U.S. judgment might be difficult to enforce in Denmark, a tactic the plaintiffs deem deceptive and illegal.

"Such a position is an unfair claims settlement practice and advocates prohibited and illegal conduct," the plaintiffs stated in their complaint.

The plaintiffs argue that QBE failed to properly investigate their claims and did not attempt a "prompt, fair, and equitable settlement" as required under Massachusetts' consumer protection and insurance laws. They also claim that QBE's failure to disclose its coverage of the former WMO executives, who allegedly misled them during the partnership, further complicated their efforts to recover losses.

Michael Landry $18M Trial : Background of the Joint Venture

Landry, who had an existing boat business in Massachusetts, partnered with WMO to comply with the U.S. Jones Act, which mandates that domestic shipping be conducted on vessels owned predominantly by U.S. citizens. TFIC, based in Maine, was brought in to assist with financing and capital raising for the venture. However, by 2022, the relationship had soured, with WMO allegedly breaching noncompete clauses, unilaterally replacing board members, and dismissing the CEO who had negotiated the original deal with the plaintiffs.