Read my page on timing. Basically, during the Damage Resolution mini-phase, it first checks ALL applicable units to see if they have a Close Skill that needs to go off. If it does, it puts it in the cue. Then it goes through the cue. This is done because sometimes a killing close skill triggers another close skill, and rather than interrupt it's added to the cue at the end. Because it was day when the Close Skills were added to the cue, Dagon's wasn't added in the first place.
"Scissors are overpowered. Rock is fine." -Paper