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Milodragovich,
Dale, Steinbrenner
& Nygren P.C.
620
High Park Way
P.O. Box 4947
Missoula, Montana
59806-4947
Telephone:
(406) 728-1455
Fax:
(406) 549-7077
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NOTICE OF FINAL HEARING ON SETTLEMENT AGREEMENT
AND HEARING TO APPROVE ATTORNEYS'
FEES AND COSTS
On
July 7, 2004, at the Federal Courthouse in Missoula,
Montana, a Final Hearing will be held for approval
of a Settlement concerning the Darby Lumber, Inc.
Employee Stock Ownership Plan ("Plan") and
Employee Stock Ownership Trust ("Trust").
The Settlement arises out of the litigation
currently pending in Federal Court as Behling, et
al. v. Darby Lumber, Inc., et al., Case No. 99-165
and related actions (the "Litigation").
The Settlement:
The
parties to the Litigation have agreed to settle the
case for the payment of $5,022,000.
The Settlement will result in the payment of
that amount to the Plan and the Bankruptcy Estate of
Darby Lumber, Inc., based upon an allocation to be
approved by the District Court and Bankruptcy Court.
$600,000 of the settlement amount is proposed
to be distributed to the Bankruptcy Estate of Darby
Lumber. $2,489,670.96
will be paid to counsel for the Plan Plaintiffs to
reimburse them for their out-of-pocket costs and
fees incurred.
The
Settlement will also result in the release of claims
against Robert E. Russell, Peggy Russell, Richard A.
Reep, Reep, Spoon & Gordon, P.C., James C. Buck,
Moss Adams LLP, John D. Menke, Western Services
Group and certain related entities and their
insurers. The
Settlement will also bar any additional or future
claims against these parties by the Trust, Plan,
Plan Committee, or Plan Participants based on
alleged violations of ERISA or arising out of or in
any way related to the circumstances, causes, or
claims at issue in the Litigation.
What is the purpose of the
hearing?
The
purpose of the hearing is to approve the Settlement
and the distribution of funds from the Settlement to
the Plan and the Bankruptcy Estate of Darby Lumber,
Inc. Also,
the Court will be requested to approve the
application for attorneys=
fees and costs by counsel for the Plan Participants.
Fees and costs in the total amount of
$2,498,670.96 are sought by counsel for Plan
Participants.
The
District Court will also appoint the Alaska Trust
Co. of Anchorage, Alaska, as Trustee of the Trust,
and sole member of the Plan Committee, and
administrator of the distribution of roughly $1.923
million to the Plan Participants.
Who is Affected?
The
Settlement affects the rights of Participants in the
Darby Lumber Employee Stock Ownership Plan, and also
affects the rights of the Bankruptcy Estate of Darby
Lumber, Inc. Any
person with an interest in either the Darby Lumber
Plan or in the Estate of Darby Lumber, Inc. may be
affected by the Settlement.
What if I agree with the
Settlement?
If you
agree with the Settlement, you do not need to do
anything further.
If you are entitled to a distribution from the
Darby Lumber Plan, that distribution will be made
according to applicable law and the Plan
administration documents .
What if I don=t
agree with the Terms of the Settlement Agreement
reached by the Parties?
If you
do not agree with the terms of the Settlement
Agreement reached by the parties, you must file an
objection with the Clerk of Court for the U.S.
District Court for the District of Montana, Missoula
Division, at 201 East Broadway, P.O. Box 8537,
Missoula Montana, 59807, no later than July 2,
2004, describing in detail all of the
objections you have.
You must also serve a copy of your objections
to the following address no later than July 2, 2004:
G.
Patrick HagEstad, Esq.
MILODRAGOVICH,
DALE
STEINBRENNER
& BINNEY, P.C.
620
High Park Way
P.O.
Box 4947
Missoula,
Montana 59806-4947
If
you do not timely file and serve your objections, your
objections are waived and will not be considered at
the Final Hearing.
Additional Information:
Additional
information concerning the Settlement is also
available by calling counsel for the Plan Plaintiffs,
Mr. HagEstad, at (406) 728-1455.
Do not call the Court.
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