The party arrived in Phandalin where they set to meet with their contact, Sildar Hallwinter at the Stonehill Inn. Upon their arrival, they are told Sildar Hallwinter left out and should arrive in the early afternoon by the inn keeper, Toblen Stonehill.
While enjoying a meal and some ale (along with pricey wine for placeholder), they hear arguing outside and what sounds like someone crying. Miri heads out to see what is going out and finds a man being attacked by tough looking individuals wearing red scarves. Miri goes on and threatens the men to leave him alone and casts an Eldritch Blast towards one of them, which begins combat. After handling this situation, they assist the man who reveals to be a woodcarver in town. He thanks them for their kindness however warns them the group, the Red Ruffians, would retaliate and the whole town would likely have to pay.
The Red Ruffians are revealed to be taxing the inhabitants of Phandalin “for their protection”. After speaking with various folks in town (and receiving various pleads for help), the mayor reveals to them the Red Ruffians are no problem at all and are protecting the good people of Phandalin
The party ventures into Tresendar Manor. They stumble upon a nasty creature called a Nothic which warns them to leave as they are not welcome in the manor. A combat follows which results in the quick death of the Nothic at the hands of Madrac.