| Brightmantle |
Much as many others here: I see no wrongdoing on the part of the Paladin. The player did nothing blatantly evil or outside of his code as written in the core book.
I'd say that as a G.M. you should establish in advance the particulars of your expectations that reach beyond the strictures written in the rule book. Read "house rules". To have a conversation with an evil outsider for the purpose of information gathering for the furtherance of Good and reaching the ultimate goal isn't an intentionally evil or chaotic act in my opinion. He's not in league with the demon. If he willingly gave over his mind; that's something entirely different. He simply placed his hands upon a table and questioned a creature for information.
I'd also question my GM should he attempt a "jedi mind trick" such as the one you put on his p.c. with- no written rule allowing such, no idea of the consequences involved, no p.c. knowledge of the creatures intent to take over his mind or posses his soul, and no saving throw to prevent it.
I wonder at why you as the GM appear to be setting the p.c. on the road to ruin with a opportunity to return to his quest and are simply bypassing his free will by saying "The demon enters your mind" and then blaming him for allowing it to take place. He put his hands on a table not pledged his soul for trading information, nor did he invite demonic possession.
Sadly:I see this as a betrayal of trust between a player and his Game master. I am uncertain if this was intentional or if your intent is to ruin the Paladin in question. I think you as his GM should rectify this situation and refrain from such conduct in the future as a sign of renewed commitment to mutual trust. In my view: you removed his agency from the situation with this scenario and are asking if you should further penalize him by convicting him of a moral failure because it happened. This is your doing, your encounter, your narrative ( a railroad to possession), and it was your choice to make him submit to the infiltration of his mind. The responsibility falls on you.
This Paladin should not fall.