Closer examination shows the halfling underneath his mail has no heartbeat; he doesn't appear revivable. The wardog (also wearing mail) has also expired. No blood is visible on either.
One of the Guard, overhearing Kith's comment, replies: "I haven't seen Palasant for awhile. I think he took off right after the big explosion awhile back. We're trying to find him.
"Marin, the paladin," the scarlet clad guard says, pointing to the halfling, "yelled some kind of battle cry, and called for help. By the time we got here, he was lying dead already."
The man looks genuinely sad. "I've known Marin for nigh on twenty years and he never raised a weapon against anyone he didn't know was evil."
The soldier makes some sort of superstitious warding sign under his cloak. "Whoever done that to Marin was probably some kind of demon."