I'm playing the adventure in Leukish, in the Duchy of Urnst in the Greyhawk setting. The city is the nominal capital of the country, tough as a late feudal state, the ruling class is mostly rural and the city is run by a governor. The tradition of Leukish is lawful and ought to punish a crime like this severely, but the governor is corrupt - which will likely make him more strict in this case, to show a lawful facade. So, if the players report to the authorities, they are likely to want to hang the perpetrators in short order. If they can catch them.