Rules for 25 June 2001
A rules digest from the L5R CCG rules team, copied from the mailing list archive for Oracle of the Void. The askers' names are left out. Rulings are as they stood on this date; later rulings, the rulebooks and the Rules Archive may differ.
I just had a look at the Iaijutsu Art preview on the AEG site... and I'm a bit surprised. It doesn't explicitly state that the duel is non-lethal! (it just says to "Dishonor the loser")
It's still non-lethal. It states what happens to the loser, so that occurs in place of being destroyed.