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After completing the Contract: The Phantom of Eldberg you’ll return to the inn at Arinbjorn to meet Jorund for your reward. You’ll be confronted by Kori and Kraki who will force you into a fistfight. It quickly escalates into a swordfight and Jorund is fatally wounded.

Finish off Kori and Kraki and then leave the inn. Their father, Leif, will cry out for justice because you killed his two sons. The other patrons of the inn won’t stand up for you so you’ll faced with a drunk mob of villagers. With no other option Geralt will agree to face trial and you’ll be locked in Madman Lugos’ Keep.

You won’t be allowed to see the Jarl so to escape you’ll need to either cast Axii (Level 3) on the Guards, beat up the other 4 prisoners or offer to help the prisoners in return for their help. This starts An Unpaid Debt.

Go and see Madman Lugos and he’ll convict you of two counts of murder, punishable by death. He says there is another way to make up for the crime, to pay for your freedom. As you don’t have enough silver to buy your freedom you can instead help Blueboy Lugos in his quest Cave of Dreams.

This ends the quest and begins Cave of Dreams. If you’ve already completed this quest than it will be accepted as your payment and you’re free to go.

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