In-party conflict- how do we tell which player's in the right and which in the wrong?

[Lvl 2 Expert]

This is an interesting dilemma. The paladin is probably the most out of line in character, while the dwarf appears more out of line out of character.

The paladin's act is worse because they're killing a person rather than an animal. I'd rate that as worse because while the ogre is an enemy, they're now helpless. The dwarf also has the minor excuse of acting second and out of revenge. And the paladin has the disadvantage of being a paladin, they're held to higher standards.

But the dwarf's action is worse because it's PVP. The prisoner was a prop in a scene, at best a future informant. The horse was not a class feature, but definitely an integral part of the paladin's equipment. They're also adding a threat going forward, not a good base for future adventures together. The revenge excuse also turns around here, revenge against fellow PC's is a nono. The dwarf's actions definitely go against the unwritten rules of the game.

So there are at least two competing viewpoints here. Picking which one is more wrong is kind of a choice on which aspect of the game you think is more important: having a consistent in character world, or having a fluent out of character game.