Gurke is a 'crusty' old dwarf. He can be found at the back of the Jovial Juggler, although he will find you the first time you approach the bartender there to present you with a long rant and a side quest .
He recently had a cloak stolen from him by some tasloi in Cloakwood. As a result he is somewhat subject to mocking by passing travellers.
Aye, so everyone's heard, everyone's a rubbernecker then, is that it? Old Gurke had his famous cloak stolen right off his back by a batch of paltry tasloi. Yeah, yeah, it's old news and if you make one crack about the Cloakwood being an appropriate place to lose it, at least, I'll put your liver on the menu. Now move on and let the next people in line have their laugh.