I don't understand what you said here as more context really. You said they were Imperial guard, the PCs or the Elvish Navy? If the latter, then why would a lawful Paladin go up against lawful agents of an Empire?
So this half-elf said they were carrying the finest gladiators on board. Okay, but why did this fight happen? What slight did the Paladin face that they chose to fight for an apology? That is what I am missing.
I am not saying to dumb down stuff if a player decides to do something stupid. But the way it was stated in the initial post was that this guy was a bodyguard of an Imperial Naval Captain. Now they happen to be one of the finest gladiators in the Empire. Okay... And the PCs didn't recognize them? Or are they that unfamiliar with the Empire and its culture?
I agree. Some of this was no doubt a decision on the player. How it came to be is important in telling if this was due to a Lawful-Stupid Paladin, or just a dumb idea by a character who happened to be a Paladin.
Right now, it still sounds like the latter. I award you no points and may God have mercy on your soul.
The set up was this. They were approaching the harbor if Sasserine. It's a narrow opening and the Elven cutter basically assumed it had right of way.
They decided to try and beat them through into the harbour, wasn't really clear who cut who off.
They then raced them through the harbor and got the best berth zipping in front of them.
Said player demanded an apology from the captain of the ship.
The captain was escorting an unknown VIP to the Sasserine captain.
On the wharf they disembarked and the Paladin tried to pick a fight, the rest of the party was like un no. They had 12 Ja Din, two battle ogres, the captain and slaves carrying the palenquin.
The Imperium is arrogant but the party has never met an elf from the imperium before (still haven't).
Once he realized the rest of the party wasn't keen he went down the solo path route challenging the captain and asking him to apologise (not sure for what but hey).
The captain declined but offered him "you can fight one of my guards if you insist. They're done if our finest drawn from the ranks of our finest gladiators". *Chose one they're all the same".
They were there to guard the VIP. The VIP was there to issue an ultimatum which was to set up the next session and the backdrop for a potential war and privateering.
He did ask about playing an elf as well. I said it was fine just be aware they're not that popular. They're Imperialistic slavers. At best Sasserine has a dozen elves or so.
Well not all of them, as I said I modeled them after the East India Company.