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The other day, I had a player who was playing a paladin to fall. Details below, spoiler'd for spoilers from #6-22, Out of Anarchy.
Was I right in ruling that the player's paladin fell from grace, and requires spending 8 PP (or buying spellcasting services) for an atonement spell to regain his paladin-hood?

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Can't speak to exactly what happened but based on your summary, I would be particularly careful about it and would hesitate to make a paladin fall. Paladin/party interactions and whether a paladin can and should fall for the actions of party members (in PFS especially) is a bit of a controversial subject... as evidenced by some recent threads in the general PFS forum.
There's also the metagame question of whether the player was actually paying attention, were they distracted, etc.
Generally Ragoz is correct, so if you didn't explicitly warn them, that's a problem. Also keep in mind that PFS paladins are generally expected to work well with other party members, including clerics of evil deities, necromancers, thieves, devil summoners, and the like. The level of behavior needed to fall is usually expected to be more dire in PFS due to the number of things that are out of the paladin's control.

outshyn |

Here is the relevant section from the PFS rules:
Alignment infractions are a touchy subject. Killing an innocent, wanton destruction, and other acts that can be construed as evil might be considered alignment infractions. Ultimately, you are the final authority at the table, but you must warn any player whose character is deviating from his chosen alignment. This warning must be clear, and you must make sure that the player understands the warning and the actions that initiated the warning. The PC should be given the opportunity to correct the behavior, justify it, or face the consequences.
If infractions continue in the course of the scenario or sanctioned module or Adventure Path, an alignment change might be in order. If you deem these continued actions warrant an alignment change, you should note it on the character’s Chronicle sheet at the end of the session in the notes section. The character can remove this gained condition through an Atonement spell.
If Atonement is needed, players are supposed to resolve that before going home after the game. Being a "fallen paladin" isn't allowed to carry over into the next game. The player forks over cash immediately at the game conclusion, and goes back to being a normal paladin in good standing.
If you didn't warn the player outright, by flat-out stating exactly what would happen and what was at risk, then you cannot make the paladin fall, according to PFS rules.