Heh, I had that happen with the tanner in the Bridge District. I got so sick of him getting away, I told him we would leave, then summoned monsters, undead etcetera. I encircled him with them so he couldn't flee down the stairs and then re-initiated dialogue. He couldn't flee and we dealt out over 3000 points in damage before I finally gave up. He just can't be killed in his shop, I guess because you're not supposed to kill him until Trademeet. Your case though may be a bug, I had no problem with him. Anyone else?
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