Use the emote /soothe on Medrod to complete the quest.
According to Minfilia, there has been another potential sighting of Lahabrea in the North Shroud. Speak with the sylph Noraxia for the details.
Noraxia tells you that a miner named Medrod witnessed an unsavory masked character in the wood. Take yourself to Fallgourd Float in the North Shroud, and learn all you can from him.
You find Medrod at Fallgourd Float, but the man is too perturbed to speak of his experience. Perhaps his companion at the table can help to settle him down.
According to Aideen, nothing calms Medrod like a serving of lentils and chestnuts, his mother's speciality. Obtain a sample of this dish and bring it to him.
You have brought Medrod his favorite dish, but it will take a bit more effort on your part to calm his frayed nerves. For want of a better idea, try to /soothe the man.
Medrod finally settles down and recounts his blood-curdling experience seeing the masked man, whom he swears is Death incarnate. As Minfilia mentioned, it appears that this individual is indeed connected to the recent spate of mysterious deaths.