So i've seen this happen before but didn't really know if it was a bug. Medal of Valor says upon the equipped champions death it goes onto the closest enemy champ. Well if the champ that it swaps to is the same one that kills the enemy champ with Medal of Valor, Battle Leader also procs simultaneously. Since the champion didn't technically have battle leader via the equipment until after having already killed the enemy champ for it to then switch over to him, surely it shouldn't then also proc battle leader?
I witnessed that as well, but I think it's less of a bug and more of a neat, intricate feature / semi-punishment for you for mishandling the medal. It gives your opponent some extra space for planning by choosing which champion he wants to finish your medal carrier with in order to secure it for himself.