Dist.Ct. erred in denying motion by one class member seeking disgorgement of $130,000 in settlement proceeds that three other class members received in compensation from proceeds that class had received in settlement of class action, where said class members had objected to terms of class action settlement, had appealed denial of their objections, and had dismissed said appeals in exchange for instant settlement payments. While Dist. Ct. found that objectors had not intended or committed illegal act nor taken money out of common fund by taking money in exchange for dismissal of their appeals, Ct. of Appeals, in reversing trial court, found that settling objections to proposed class action settlement where objections asserted class’s rights in return for private payment to objectors is inequitable, and that disgorgement is most appropriate remedy. Moreover, said objectors who settle their objections for amounts in excess of their shares as class members are not paid for anything they actually owned. As such, objectors’ settlement proceeds belonged in equity to class.
