It's part of the Imperial Quests. A really corrupted one even as far as I can see.
Arrghh Captain, there be spoilers ahead!
You get a mission from the Imperial Legion captain in Gnisis to go some lady and demand her land deed. Apparently her husband recently died and therefor she no longer has the right to their land. When speaking with her she tells her husband disappeared into mines when seeking for food. So you can choose to do the right thing and go search for him or take her land deed anyway and report back to the captain. Searching for her husband will you leed to the Orc (I just ran past him through door before he got to ten 
) and finally to her husband's ghost who tells the truth and tells about the axe. When the Captain is shown the axe he admits a crime has been commited and sends you after the orc and tells you to leave the widow alone.