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Don't forget the three criteria that must be met before you can use deadly force - Opportunity, Intent, and Ability. (Some prefer the term Jeopardy instead of Intent.) Unless you can positively identify all three elements, you can't fire. As you described the scenario, this guy clearly had the Opportunity (lots of people around) and the Ability (a handgun). However, I see no evidence that he had Intent. Did he verbally threaten anyone? Did he point the gun at any one specific person (other than his sparring partner)? Did he order anyone to get down or take any other action? Remember that the burden is on you to establish that he has Intent. If all you can say is "Maybe" or "I don't know that he doesn't have Intent", then don't intervene.
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