After the party awoke from the rest, the innkeep downstairs bid them to follow him behind the bar. He revealed a trap door leading down to a secret meeting room where they were confronted by Dagmaer Suljack, leader of ship Suljack, along with Trogar and Otto.
Trogar explained that his real name is Leo, the one Otto had tasked the party with finding. He explained that his hanging at the Prisoner's Carnival was staged to look like he was killed, but he was taken to the ruins unexpectedly by the Mages the party defeated earlier. Otto explained he did not tell the party for fear of the truth of Leo's death at the Carnival being revealed to the rest of Luskan's powers.
Suljack offered the party a chance to help them rid Luskan of those they described as asserting control over the freedoms of the citizens, specifically the Arcane Brotherhood and Ship Kurth.
She offered the party a chance to discuss the matter amongst themselves. Leo discreetly told the party to find some place private to talk, implying that Suljack had ears in the tavern.
The party found themselves holed up in the Cutlass, weighing their options.