The note you need is on the floor between a crate of skooma and some barrels in the basement's northwest corner, but be warned that the guard will object to you taking it if you're spotted.
If choosing to cause a brawl you can simply speak to Medyn again before anyone has died to receive the full reward.
The following Journal ID and Index codes can be used with the Journalconsole command to manually update the quest to a certain point.
High and Dry (TR_m7_HO_HighAndDry)
Index
Finishes Quest
Journal Entry
10
In the docks of Hlan Oek, I met Drissa Vendil, a captain of a ship called the Brave Coda. Drissa told me that she and her crew are stuck in town, waiting for her ship to be repaired. She asked me to find out why the ship's repairs are taking so long. She suggested I might learn something in the Shipbuilders and Sailors Hall.
20
In the basement of the Shipbuilders and Sailors Hall, I found a note alongside a crate of skooma. It appears that Ithis Randaro, who runs the Hall, is trying to smuggle skooma aboard the Brave Coda without alerting its captain or crew.
30
Ithis Randaro told me that the Brave Coda's repairs are delayed because he is trying to smuggle skooma aboard it to Andothren, on behalf of some "friends" of his. He hasn't been able to get the skooma aboard with Drissa Vendil's crew watching it.
40
Drissa Vendil was upset that she hadn't been cut in on Ithis Randaro's attempts to smuggle on her ship. She asked me to negotiate a cut with Ithis Randaro for herself and her crew.
50
I convinced Ithis Randaro to cut the shipmaster in.
100
Finishes quest
Drissa Vendil thanked me for convincing Ithis Randaro to cut her in.
110
Finishes quest
Ithis Randaro paid me 400 gold for distracting the Brave Coda's crew members from the ship.
150
Finishes quest
Drissa Vendil refused to do any business with me after the death of Ithis Randaro.
200
Finishes quest
Drissa Vendil refused to do any business with me when she discovered that one of the Brave Coda's crew members died by my hand.
210
Finishes quest
Drissa Vendil is dead.
High and Dry (TR_m7_HO_HighAndDry_a)
10
Ithis Randaro asked me to distract the Brave Coda's crew members, Qaidilwe and Tharkul gro-Sham, from watching the ship's repairs, so that his workers can stow their illicit cargo aboard.
20
I tricked Tharkul gro-Sham into starting a fight with Medyn Arns.
30
Qaidilwe has left the Brave Coda undefended in order to fight alongside her crewmate.