The party tracked back the funeral attendees to the kobold lair. The lair is behind a beautiful waterfall and outside the lair kobolds are everywhere sunning themselves. Lindal scouts the area but trips and alerts the kobolds on his way back starting the battle.
The kobold rabble is organized by a dragonshield But Eddie sets a section of the forest on fire with burning hands eliminating a huge swath of the kobold tribe. Lindal gets trapped by a group and glued in place by a sling wielding kobold who then hucks a skunk at Eddie. The skunk hits Eddie and then sprays him causing him to gag and have trouble casting accurately due to his burning eyes. Kyloren faces down the dragonshield whom is standing on a tribal blessed site while Freya runs to save Lindal from being surrounded by kobold rogues and butchered. It is a close thing but Lindal manages to knock one of his main attackers over to Freya whom then ties the rogue down and soundly beats it while Lindal extracts himself from the glue trap.
The Dragonshield upon seeing the battle turn calls for his allies to raise the alarm and warn Irontooth but the party prevents any of the kobolds from escaping through the waterfall to alert the forces inside. The party bandages their wounds and a quick scout by Lindal revealed a bunch more kobolds inside the caves behind the waterfall and that there is a Wyrmpriest and some more dragonshields as well as a veritable horde of kobolds. The party plans to make a direct surgical strike on Irontooth who they take to be the kobold priest and successfully strike fast and deep and drop the priest before he can even act. But the kobolds still rally and attack and only after several waves of slaughter do the party meet the real Irontooth. Instead of a kobold it is a goblin!
Eddie defends the rear and prevents the party from being flanked by rogues but gets very beaten up in the process. Lindal deals a lot of damage but gets grouped up on by the rogues and also almost drops. Kylorin throws down some healing to save Eddie and the back is secured even as Irontooth even without the help of flankers proves to be a serious menace all on his own. He rages and swings a wicked axe as if it was nothing taking multiple attacks for each attack by a party member and slipping around the party each time someone misses an attack on him. It is quite a battle and he does a lot damage but in the end he is defeated and some correspondence and a key recovered. The correspondence reveals that the ritual is almost done and only a few more days are needed. It also reveals that Kalorial has spies inside the town.
The missing goods are discovered and some hefty treasure recovered and the party makes plans to hide the fact that they defeated the kobolds until they can identify the spies. The party bundles up the remaining weapons but leaves them stashed away and only takes the gold and a magic suit of chain they found. But upon returning to town it is discovered that somehow rebels smuggled weapons and armor into the town and have taken the lord and his staff hostage and have demanded 1000 gp ransom from the town as well as the sacrifice of 3 villagers to be named later.
The party earned 1825 xp alltogether and looted the following during the session :
29 kobold weapons (worth 145 gp from Lord Padraig currently bundled up and hidden in the cave)
1 grusome human sized battleaxe
suit of magical dwarven chainmail (+1 to ac and endurance, daily power of healing a healing surge as a free action)
424 gold
17 silver
Pile of food and goods stolen from the town