squidzilla, a sword and it's dead jim

[orfu]

So we've had some discussion during a game today where I had the sword that slays everything but squid.

I was battling a level 9 monster (for the winning level). Then someone added a wandering squidzilla.

So due to the sword this meant I had to run. However. I had the 'its dead Jim card'(dead, monster does not fight)

The argument we had was whether it was valid to use this card on squidzilla, as I should flee. My argument is that I could play the card at any time in any situation to kill a monster. Killing squidzilla in my mind meant that there was no longer a need to flee and I could continue combat against the other monster. However that I would not gain squidzillas treasure as I was not in actual combat with squidzilla.

We proceeded with that reasoning after some arguing, upon which I defeated the remaining level 9 and won. However am wondering whether my use of the it's dead Jim card was legal in this parsquidular situation. . thanks for helping out :-)