Why not? He tricked the hero, escaped, bought more troops, and attacked again. It's not necessary to make the quest about the 'hero surviving'.
Heroist, the xdb and lua files should not be in intermediate folders.
Here are their actual paths (not the ones you need to write in the function)
\Maps\map1.h5m\CombatScript.xdb
\Maps\map1.h5m\CombatScript.lua
