...it doesn't actually look like Paul is guilty of anything but refusing to accept a settlement that was unreasonable in the first place.
RTFA - he was found gulity of reverse domain name hijacking, which isn't stealing a PTR record as one might think, but accusing someone of domain squatting when you demonstrably know they aren't squatting (in this case because they offered it to you).
I also fail to find any reference to a settlement.
RP: Give me both A and B, or else.
Owners: It's our property. You can buy A or get B for free.
That's not a settlement.