In Pasadena TX and officer got suspended for a week for not shooting someone. The guy had a knife and he talked him into surrendering. The stated reason was he could have thrown the knife and the officer was taking an unneccessary risk.
Can't win for losing.
Is this the case you were thinking of?
http://flyservers.registerfly.com/members5/policecrime.com/misconduct/Texas2_police.html