Lawful Stupid Rears its Ugly Head... Again

Well, from reading everything, it seems like the DM just pushed this one out.
As LG there might be a problem with the looting of random passer-by, however, it's D&D, lookting a fallen foe is part of genre conventions. I also wouldn't have mentioned the purse the first time. After two or three occasions (assuming it was 'bonus loot' for the rogue) then I'd bring it up.

Lalato said:

I believe my character was the only one unconscious during the episode. One other party member was present. There were two characters that didn't see it... mine and another that was trying to escape from a burning building.

b. This one is a little harder to answer. I'll give a bit more background here to help this along. The Paladin himself did not complain about the looting at first. The DM pointed out that this was shady behavior and asked the Paladin what he planned to do about it.

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The paladin was unconcious. What character that did see the rogue loot the body and pocket the purse told the paladin about it when he regained conciousness? If it was an NPC (the DM) then the paladin can discuss it with the offended NPC and defend the rogue since he had never been seen to behave like that before. If there was no one to bring it up then it is a non-issue. Rewind and erase that part of the storyline.

Now, the dwarf may complain about having lost his purse in the fight but the authorities are not likely to care about that unless the gem is of some import.