But you don't need a looting rule for this. Party the guy you've knocked, ask him if it's ok that you take what ever item it might be from him, then making a scenario out of it. I had this happen to me, and I've done something similar myself.

What does not create any scenarios or fun is when you're knocked out. You walk to a healer, get ressed, return to body and the attacking army has left and you find your corpse with less items in it then when you started the battle.

In my opinion instead of there being consequences to each individual player after a battle there should be consequences to the guilds as a whole instead. But this has been discussed before, and the Minoc campaign was a flop in my eyes. Three guilds claim they won the city, yet no one ever RPs there lol.