That's a problem with AI (neutral AI/charmed/mad). AI don't have the concept of friendly fire. Instead they consider player is a legit target. If AI ultimately can do damage to the enemy, they don't mind hurting the players or your companions.
ooh, I like it. I have the same view on the game. if I can kill enemies I have no problem killing all friendly targets nearby
and sometimes I deliberately kill friends with 1 ap spell to proc executioner.
as for justinia, the only problem I saw when I had a fight(from a point that you want to let her survive) is that you can't use teleport on her (it damages her), though nether swap works I think. though I've never though about letting her live after all she did. even if she was deceived. so I haven't tried.
