Yes, I just found that giving the mantle to one of the feuding families is the only way to get the chainmail. Pickpocketing it would be impossible since Lord Alibakkar is wearing it and you cannot pickpocket items that are being worn or held by a character.
I've already got the Melodic Chain but could do with some more for my multi-classed mages (my party is composed of both NPCs and imported multiplayer PCs). Elven chain is the only thing F/M/Ts can wear and use ALL their skills.
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