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In a game played recently where two Chaos armies were facing my Inquisition guys, we had a problem with a deepstrike. As per normal, one of the Chaos players chose a spot to land, did the scatter roll and it veered on top of his ally's squad. In the rulebook it says:

"You may not place models within 1" of any enemy. If you are unable to complete a circle of models without any of them coming within 1" of an enemy, entering impassable terrain, or going off-table. the surplus models are destroyed."

I reasoned that although it was an Allied squad, it wasn't his squad so the rules should be applied so that the model (a Dreadnought) should be treated as an enemy and be destroyed. Only other way is that as per the Movement rules the infantry don't allow vehicles to drive through them, hence making them impassable 'terrain'. We allowed it to land and models under the Dread' were removed but I'd like some thoughts if this has happened to anyone else.

Little note: We allowed the Dread' to land out of compassion... the ally was Nurgle and had already killed several people with Nurgle Rot, exploding vehicles and 'friendly' Ordnance fire. Some rolls are meant to create tears.

This is covered by the online GW rulebook FAQ: Friendly models count as impassable terrain for Deep Striking models.

There are no rules for multiple player games. But is seems to make sense to treat the allies as if they were of the same army.

I think you would have a hard time convincing anyone that their teammate?s models were in fact enemies. It seems to be a direct contradiction there. Regardless, the GW faq does in fact state that friendly models count as impassable terrain (so no dropping your squads on top of each other). The important distinction here is that you don?t' have to be 1" away from friendly models, so you can squeeze in a few extra deep striking troops before they start dieing due to lack of room.