As shown in the following screenshot, the Sovereign was unable to attack the spider with "0" Swords/Shields (no weapon) despite the fact the Sovereign had a powerful offensive spell (lightning).
http://screencast.com/t/Njg3Yzk0YjY
Of greater importance, during AutoResolve when the Sovereign was begin attacked in the same kind of circumstance, the Sovereign died as the AI did NOT use the Sovereign's offensive spells. This issue was resolved by eliminating autoresolve combat by setting the Slider to "0" in the game settings.