That becomes a little more complex.
Perhaps it is best to create two dynamic named ranges
With "Sheet1"
Name:= Regarding_Party
Refers to:=
=Sheet1!$A$2:INDEX(Sheet1!$A:$A,COUNTA(Sheet1!$A:$A),1)
Name:= Status
Refers to:=
=Sheet1!$B$2:INDEX(Sheet1!$B:$B,COUNTA(Sheet1!$A:$A),1)
Then in "Sheet2" B2 this array formula
=IFERROR(INDEX(Regarding_Party,ROW(IF(ISERROR(INDEX(Status, SMALL(IF((Status<>"Open")+ISERROR(Status), "", ROW(Status)-MIN(ROW(Status))+1), ROW(1:1)))),"",INDEX(Status, SMALL(IF((Status<>"Open")+ISERROR(Status), "", ROW(Status)-MIN(ROW(Status))+1), ROW(1:1))))),1),"")
Confirm with Ctrl+Shift+Enter not just enter
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