I just checked the notes on Despair. Despair does damage equal to 4x the level of the targets (but only half damage if resisted).
For my level 10 sovereign, It should only be doing 40 damage without resistance, but it seems to do 80 damage without resistance, outright killing any non-hardy Sovereign. I'm pretty sure it's a bug.
I managed to finally beat the Dark Sorcerer by using Mana Shield with 200 mana. If they are going to leave despair the way it is, it should be an epic-rated quest as it was much harder than other epic quests (not a medium quest).
That said, I'm going to have to find me a despair spell. It's practically auto-win with it.