Someone did catch him only to be teleported to a spot they weren't supposed to be at yet and had to restore their game.
You do not need to catch him at all. You can, though you do not need to, kill him. The leprechaun treasure quest (from the pawn shop) is resolved by finding his treasure chest which is beyond Anephas' pyramid.

Wyv

The little leprecaun in chapter 3 (well after the third town) He's walking around and keeps teleporting. can you catch him? I tried putting him to sleep and binding force.

Yea, i catched that bastard.Then he teleported me.And then I got mad and killed him hes worth like 40 ooo exp to each of your party members (i have 6!)

Bit of advice-----area spells doesnt work, better to use incrinate and lighning and anything else that has fast attack speed......I used like 30 lighings and 50 incrinates but got him nailed down.Took 2 hours, but was worth it