He's in act 2 at the town there. If you lose the town he's gone.
It's an inn not a town.
Semantics.
Was also half awake when I posted that.
It is not semantics, an inn and a town are two entirely different things. The town in Act 2 is Reithwin and the OP will not find Dammon there.
Was also half asleep when I wrote that.
