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So this may be a stupid question, but it came up in our game the other day and am really trying to see what's right. I ended up catching some fire dragons with cleansing flame and killing 2 of the 5. The other 3 then proceeded to fail morale and begin running away. At the end of turn I rolled for soul blaze and they ended up losing another model to it. The question arose at this point of do they automatically fail another leadership and keep running, or do they even take a leadership test because they took wounds in no phase? We ended up playing it as they didn't take a check since there was no end of a phase and they ended up failing to rally anyways and fled off table.

If the unit is already fleeing then there is no need to take another morale test for casualties inflicted.

The question is do they test after soul blaze inflicts 25% or more casualties?

If they're not already running away, then yes.