prosfilaes
Adventurer
I think this amounts to bad communication.
To me, it would be clear that that was an RP encounter. Like you see in the movies, the good guy storming bruised and battered and "threatening" the bad guy without actually harming him.
However the scene failed. You should have hinted more that that was an RP encounter.
Perhaps a narrativist style would make the distinction, but I would find it a frustrating distinction in play. If my character feels offended by being manhandled to the point that he kills the paladin (and I do get the feeling that it was part of an 'evil cool' that the player was going for), then that's what he should get to do. Defining it as a RP encounter is artificial.