Recently my players were raiding a criminal headquarters. These were not nice people: drug runners, loan sharks, things like that. However, as the fight went poorly and they were unable to run away, a number of the criminals surrendered. One literally ducking into a cabinet and curling up to hide, even when it was opened.
The paladin proceeded to directly kill one of these surrendered foes, and advocate the rest, reasoning that their involvement with the gang was reason enough. While they were in the criminals base, they were still within the city. This Paladin is also lawful good and a paladin of Bahamut.
They were working with the guard, and have a friend that is Captain of the district they were in, so legally they should be able to clear this up, but I'm trying to decide if there should be a greater consequence. Would it be wrong to have a temporary dampening of his Paladin powers to show his God's displeasure?
For the record, the group is level 5-10 at this point.