As it turns out, it was the Chief, and he was cooperating without any complaints with the captain. After having been persuaded by them, he had figured out that he had been fed lies, and spoke of the many less-than-just deeds that they had done to the court. It caused a heavy stir, as they had been travelling through many towns with him. Things such as killing an innocent clown, and lying over their great feat of killing the dangerous beast of the woods were all listed, this being after they had sung about their deeds at the nearby tavern.
It was all for naught however, as they managed to lie their way through a large portion of it, and change the focus of the court onto one of the corrupt judges who they had uncovered dirt on. Due to a lack of evidence, they were found not guilty concerning the burning of the boat, or the murder of the dwarf.
However, they did end up having to pay a fine of 20 silver coins to the Chief. While he had no real evidence that the acts he claimed had been performed against him were true, it was clear that they had caused him some sort of damage.
At the end of it all, they were given praises by an underground resistance group who hated the large presence of dwarves within the city, and became symbols because of their accidental murder. They did not find this out until way later, as they ditched the town pretty fast in order to avoid any possible follow-up to said trial, as the burned down ship had been salvaged, meaning potential evidence for the havoc they had caused before burning it.
Because of their urgency, the Chief wasn't recapture by them, and instead got picked up by the Captain and those which remained of the crew.