09/29/2020

Case Number: AC 17-0694

IN THE ASBESTOS CLAIMS COURT OF THE STATE OF MONTANA

IN RE ASBESTOS LITIGATION, Cause No. AC 17-0694 Consolidated Cases ORDER APPROVING SETTLEMENT (Robinson Insulation Receivership)

Receiver Nancy Gibson and Allan McGarvey on behalf of certain Libby Plaintiffs have jointly filed a motion (the "Motion") asking this Court to authorize the Receiver's settlement of the insurance coverage clairns by Robinson Insulation Company against Horne Insurance Cornpany (in liquidation), including liability coverage of the claims against Robinson Insulation Cornpany and Grogan Robinson Lurnber Company (herein, collectively "Robinson"). A copy of the Settlement Agreernent and Mutual Release (herein "Agreement ") between the Receiver and Christopher R. Nicolopoulos, Insurance Comrnissioner of the State of New Hampshire, solely in his capacity as Liquidator ("Liquidator") of The Horne Insurance Cornpany ("Horne") has been reviewed by this Court. I The court has reviewed the following docurnentation and makes these findings based thereon: (a) Exhibit A is a copy of the Agreement settling liability coverages in the policies.

(b) Exhibit B are the orders of the Superior Court of the State of New Hampshire, Merrimack County establishing the procedures and priorities of claims in the Horne Insurance Company liquidation proceeding.

The court concludes as follows: (A) This Court's March 23, 2018, Order (the "OrdeC) creating the receivership granted authority for the Receiver to rnake demands that the insurers settle clairns against Robinson (Order 111(c)). The Order, at Order ¶2 (a),(b) requires that the Receiver obtain this Court's approval of"specific proposals" for settlement.

Unless defined separately herein, all capitalized terms in this Order have the meanings ascribed to them in the Agreement. (B) The proposed settlement entered into by the Receiver and the Liquidator is appropriately rnade subject to this Court's approval. (C) The settlement is in the best interests of the receivership estates of Robinson Insulation Company and Grogan Robinson Lumber Cornpany because it effectively exhausts the recoverable value of the Horne Insurance policies covering liability claims against the two dissolved companies. (D) The Agreernent allows the Receiver to liquidate Robinson's insurance coverage under the Home policies for distribution to persons asserting claims against Robinson, subject to the establishment of a Trust that would, once approved by this Court, fairly and equitably distribute the insurance settlement proceeds to those claimants against Robinson who satisfy the Trust's requirements. (E) The Agreement provides, at paragraph 3.A, that Proofs of Claim be allowed in the amount of $1,412,291 (the "Recornrnended Arnount") as a Class 11 priority claim under N.H. RSA 402-C:44. (F) The Receiver has demonstrated good, sufficient, and sound business purposes and justifications for the relief requested in the Motion. (H) The execution of the Agreement is a valid and proper exercise of the reasonable business judgment of the Receiver and represents an exchange for reasonably equivalent value. The releases to be given by the Receiver under the Agreernent are appropriate and should be approved, as the Liquidator could not agree to the resolution of the Receiver's claim in the liquidation proceeding without the benefit of obtaining the releases contained in the Agreement and the Injunctions contained in this Order. (I) This court has inherent equitable authority sufficient to permit it to enter the Injunctions contained in this Order. The Injunctions are essential to give effect to the settlements and compromises set forth in the Agreernent. The Liquidator has asserted that the Injunctions, set forth in Paragraphs 4 and 5 below, are a necessary prerequisite for entry into the Settlernent Agreernent, and the Liquidator has informed the Receiver that he will not consummate the settlement and compromises set forth in the Agreernent, or rnake the payments thereunder in the absence ofthe Injunction.

Wherefore, IT IS HEREBY ORDERED: (1) The Motion is granted. (2) The Agreernent settling and releasing the insurance coverage clairns of Nancy Gibson, as court-appointed Receiver for Robinson Insulation Cornpany and Grogan Robinson Lumber Cornpany, against Home Insurance Company and the Liquidator is hereby fully and finally approved. The Receiver is directed to execute the Agreement on behalf of both Robinson Insulation Company and Grogan Robinson Lumber Company. (3) Settlement proceeds shall be paid to the Qualified Settlement Fund Trust established by this Court to hold proceeds of liability insurance proceeds until such time as this Court approves the establishrnent of a appropriate procedures for the Trust to distribute the settlernent proceeds to Asbestos Clairnants. (4) Pursuant to the Court's inherent equitable authority,(a) all Persons who hold or assert, or rnay in the future hold or assert, any Claim against Robinson, Grogan, or the Receiver arising in connection with the activities covered by the Policies, or in connection with the activities of Robinson or Grogan giving rise to the Claims that have been made or that could be made under the Policies,(b) all claims by third party claimants and by other instu•ers alleging they are entitled to contribution, indemnification, or subrogation with respect to the Policies including any clairns for defense or indemnity for claims rnade under the Policies against the Liquidator or Horne by other insurers of Claimant, or by any individuals or entities asserting "direct action" claims arising or relating to the Policies; and (c) all persons who rnay clairn to be an insured, additional insured, or otherwise entitled to any benefit under the Policies, are perrnanently stayed, barred, restrained, and enjoined fi•om asserting any such Clairn or right to entitlement, frorn commencing a proceeding, or taking any other action against Horne or the Liquidator for the purpose of obtaining any recovery or other relief frorn Home or the Liquidator based on, under, arising out of, related or attributable to, and/or in connection with the Policies.