A Painful Reminder  

Batarra sends you to talk to Miala, a barmaid in The Hole (a nearby tavern).

Miala will send you to Melai, an armsdealer near the North Freeport Gates. Melai relays a story of an Erudite attack upon his brother. He can't take vengeance himself as he's watched non-stop, but that you should go talk to Bowyer Thindel, a friend of his that has vowed to avenge Melai's brother. Bowyer Thindel sends you to listen in on the Erudites that killed Melai's brother. They apparently meet nearby.

Head to the room near the docks, across from the sage. Work from left to right in the broken down rooms until you hear a whispering Erudite talking. You'll overhear them a bit, and the quest will update.

Return to Batarra.