My party just reached the valley after stopping the army in town being the bastard that I am after the general surrendered he only gave them one of his items the armor as a sign of good faith. The rest of his stuff he took with him along with his army.
They basically had the choice stop the fighting and save the town or get stuff
Our Commander Heritage (NPC turned PC attached by King Gallo to keep an eye on Dassen's interests) would not let the party kill a surrendering general