The party briefly broke in to two groups. Dagarn and Mathan went ahead to scout and try to come up with a tactical plan; the rest stayed behind to rest.
A group of bandits, apparently wanting to make it to the base to drop off their booty, came across the party. Words were traded, and the bandits asked for protection money; the groups refusal took a bloody turn.
Scouted and reunited again, the party set out to the waterfall camp. There, they found the base, guarded by two chained drakes, two archers, and a heavier armored woman with a bastard sword.
Trill silenced the archers, but the true threat was the woman, who had a magical horn that alerted everyone to the circumstances. She blew it, and fled within the waterfall.
The party had to fight against the terrain, and move around the trained drakes. As the bandits roused themselves, those that were already awake, most notibly the yet-unnamed bandit leader, and a massive dragonborn named Karush, came immediately to the front.
As the party got in to position, so did the bandits; their leader, showing no small military training (perhaps suggesting a background prior to being a bandit?) had the archers draw, and fire, while Karush prepared to swing his massive, five headed flail.
Dagarn leapt through the waterfall, ahead of the group; the arrows, and Karush, brought him down.
The bandits called for surrender; the party rallied, although this gave the enemy time to recover as well. Kerith and Gerda plunged through the cold curtain of water, only to find themselves outnumered. They fought well, and when Marthan and Tully broke through the water barrier, it looked as though their fate might change; Marthan was able to injure the leader, and Tully protected him from many arrows, although the bear was hurt in no small way.
But Karush breathed out a noxious poison, dropping the women-warriors, and the leader was able to duel with Marthan. Marthan was going to be overwhelmed, when Melechor broke through.
Calling upon a power best left unexplored, the brand on the warlock’s body burst forth with rank fire; in addition to throwing down many of the bandits, the power knocked Marthan out.
Surrounded, outnumbered, with all of his friends down, Melechor surrendered.
Cunning Trill, though, was able to sneak away, taking a journey back to Whitehold to let Arak know of the fate of his foster-father, captain, and hirelings.
The party was taken captive; Tully, injured and seeming dead, was tossed in to the woods, while the bandits buried their men nearby.
The party was interrogated, although the specifics of each story belong to them to tell.