Okay took him out earlier and no chest spawned. Hailed Ritald before the fight dropped him like a **** and no chest. Sooooo if there is some sequence thing that people are talking about what is it. As far as i can tell Captain Varns is the first fight in the quest and you dont have to kill him if you already have the 1.0 so whats the deal. I guess it doesnt matter since i have my drop but still pretty disapointed about the lack of chest loot after the fight <shrug>