The Tale of the Dark Knight (DRK Spoilers)

[Mieck]

the maelstorm guard is actually still referring to Fray at that point.

It can be read two ways;

Mieck, madam, I... You have every right to be upset, but...

Styrnlona looks at the overbearing trader in despair. The use of the word "madam" (or "sir", I suppose), is the part with two meanings. Does he mean Fray? Or is he simply addressing you formally because he's just heard you chew the merchant out and he might get the same treatment if he appears over-familiar? Fray has already disappeared from shot and your character is facing away. Styrnlona then addresses the only person remaining.

...I think he understands, madam.

Your character's perception is what is important here - just because people seem to be addressing Fray, we know afterwards they are not. I know it seems like I'm twisting in knots to follow this line of thinking, but (and I accept this can be put back to me as a counter argument) text that comes from NPCs is pretty unreliable in this quest line because of the state of mind your character is in. In effect, they see what they want/expect to see.
To reinforce the Tyler Durden role, Fray actually even quotes him, almost word for word in the scene immediately afterwards on Moraby Dry Docks

Only when you have renounced everything are you free to do anything.

It's only after we've lost everything that we're free to do anything.