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In another thread I read you have to enter the room where Scabban originally was to get the reward for the quest. This room is in the top of the Asylum, probably two floors above where you found him. (You probably found him in the water. That means he already fell down the hole in his room.) You need to go to his room anyway to find the lever to open the gate in the water: that's the way out.
(You can use the search option for Scabban for more details.)
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