The mercenaries assigned me to accompany a group from the Hold in Stalheim to Eldara. As we neared the bridge separating the dwarven and elven lands, Balane started blowing up trees for some reason. A moment later, arrows started darting out from the trees. Ambush. I ran over and climbed the nearest tree to find the enemies, but nothing was there. In fact, once I was in the tree I couldn't see or hear anything else. Clearly some form of magic.
I climbed down to see a full battle in progress. I raced over to the bridge and, with my acrobatic prowess, kicked a bandit off into the river below. The mercenaries killed off the bandits quickly. Balane accidentally destroyed some bridge supports in his fervor.
At this point, the dwarven and elven militaries arrived. The bandits were laying in wait with another ambush on the elven side of the bridge. Many elves and humans died, but eventually we were victorious. The elves escorted us the rest of the way to Eldara with no more excitement.