I pretty much got chastised by a few of you for suggesting the non-hollywood retreat and avoid conflict approach. If the LEO's would have been called at the time of the incident, I am sure, barring a recording device , the gang-banger guy would have claimed that the guy with the gun was waiving it around and threatening to kill him with it(oh surprise someone lies to the police). That is why having a gun present for a verbal argument is not a good idea, and displaying it is a really bad idea without trying to retreat first. Also calling the police may not work to your benefit either if you are the only armed person present. Maybe reporting later, but if the LEO's show up and you are deemed the aggressor because of false statements , you are screwed and going to jail, probably never seeing your gun again, along with a big legal defense bill (and in this type case possibly loose your job). Retreating to the car was a reasonable move to make under the circumstances, and does not show being a sheep.