Following his text and waiting for him to challenge and eventually give up a fight, I figured I would offer him a drink because he was "thirsty" after the mock battle. Keyword was "drink":
Clifus says, 'Oh, I don't know what he was drinkin' but I'm sure it were a woman's drink. Me, I like me a nice big barrel o' fish wine. It don't do much fer yer breath but it'll kick ya in the behind if ye're not careful. Hmmm, boy, I could sure go fer one right now. <cough>'
Give him a fish wine. Darts O'Gavin (another non-talking, non-responsive NPC) will turn to look at him.
Clifus happily accepts the drink and gulps it down. 'Thanks, lad! Ye know, I guess ye're all right'
You gain experience!!
(no money or faction reward)
No idea who Clifus is referring to, and he isn't involved with any NPC or quest, nor does he mention any hint of a name.