The entry to the paladin's Divine Sanction mentions that an enemy takes damage the first time it makes an attack that does not include you (the paladin) as a target.
Normally it's not a huge issue (he's taking damage at some point, hooray!) but this scenario came up the other day. Say an enemy is sanctioned. He makes an attack against the party member. This activates the divine sanction and the monster takes retributive damage and would die from this retributive damage.
However since divine sanction doesn't state it's an immediate interrupt or anything, does the enemy attack still damage the party member if it's attack hit succesfully? Or is the enemy struck down before it could get the damage off?