That's what I assume they are saying, but there is ambiguity in the statement. Since they don't explicitly state when the RotWF was given to Shody in the original statement one could also interpret it as Barthaur hands in pipe 1 and Shody hands in pipe 2 but doesn't get the robe until Cumulo hands in his RotLC. This is what I am trying to clarify because I am hoping to MQ this soon, and if the turn-ins are being done properly but the second person doing a turn-in is getting the robe after the third item is turned in I think I'll wait until it's fixed.
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Shody could unequivocally answer this by looking at his/her log to see if the second time Balatin says "May you have the correct items or lost forever will be all" is immediately proceeding the quest completion text of "Brother Balatin holds his arms out and a fine robe materializes before your eyes. You grab it just in time to see the skeleton fade from existence."
Edit: I'm not trying to be a dick here, I'm just trying to get absolute clarification to help all those future MQers!