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4166 REVIEW DENIED In coverage litigation, the bankruptcy court's fashioning of a trust for the benefit of future creditors of a bankrupt asbestos supplier was not the result of an evidentiary hearing and therefore does not bind the bankrupt's insurer; ordinarily, a settlement by the insured to which its insurer has not expressly consented does not bind the insurer, but an insurer should not be permitted to hover in the background of critical settlement negotiations in bankruptcy court and thereafter resist all responsibility on the ground it did not consent unless the settlement and bankruptcy plan were unfair, unreasonable, or the product of fraud or collusion.
FULLER-AUSTIN v HIGHLANDS INS (Bankruptcy Plan) 135 CA4 958 [See: 11 USC 524(g); Wolkowitz v Redland 112 CA4 154, T/AT 11/03]
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