My issue with this is not who is right and who is wrong. It is about one character going behind the back of another character. I think your paladin should at least call the dwarf on the carpet about not being able to trust him.
As for the goblin kids what a cool idea the book of exalted deeds has rules on how to go about redeeming evil characters.
I prefer playing a world where most senient creatures get some kind of choice about being good and evil.
In a 3.0 game we found some kobold babies my character insited that we take them and care for them. I tried to teach them right from wrong. And it was working one of the kobold was good the other though took the taunts and meaness the other party members did to him and he was well on his way of becoming evil.
I like moral dilema's in my games.
As for the goblin kids what a cool idea the book of exalted deeds has rules on how to go about redeeming evil characters.
I prefer playing a world where most senient creatures get some kind of choice about being good and evil.
In a 3.0 game we found some kobold babies my character insited that we take them and care for them. I tried to teach them right from wrong. And it was working one of the kobold was good the other though took the taunts and meaness the other party members did to him and he was well on his way of becoming evil.
I like moral dilema's in my games.