Lieva Dourlily asked you to keep a watchful eye out for a goblin leading not only the goblins, but the many Wargs that bolster their number.
'Since you are headed north-east into the goblin infested hills and vales, I think I ought to ask you one more favour and issue you one more warning.
'There are Wargs among the goblins, and a good many of them. Old Mugwort -- a dear friend of mine and the cook here at The Forsaken Inn -- hates them fiercely. I hate the goblins, though, and seeing that I do, I want you to be mindful of the pack-master, Lûz.
'If you see him, steel your nerve and grab your steel. It will be a difficult battle, but you should defeat him. When you do, return to me with news of the fight!'
Seek out the goblin, Lûz, at the goblin-camps north-east of The Forsaken Inn.
Lieva Dourlily told you to be wary of the goblin pack-master, Lûz, and requested that you defeat him if you find him.
Lieva Dourlily is at The Forsaken Inn, south-west of the goblin-camps.
You found and defeated the goblin pack-master Lûz. Now you only need to return to Lieva Dourlily.