I've encountered a situation that cost me a game. Where I had a single 1 point of health and made a lethal attack on a figure that had counter attack. The lethal damage was applied they went to zero health, but instead of playing the death animation and giving me their GG and ending the game the game chose to then apply the counter damage bringing my attacking characters health to zero and then playing MY characters death animation.
That is not the order that things should have happened. They should have died first, they were at zero. Only spell effects get applied before damage.