Toby likely would have obeyed Claire, had he been able to. The moment Jareth's face showed that horrible sort of recognition, all of Toby's delusions about being able to protect Claire from the Goblin King vanished and he was so frightened that he was rooted to the spot. He literally could not move when Jareth stepped closer, not even when Claire fired the gun.
It was only when Jareth landed on the ground that the terrified spell Toby had been under was broken and he was free to move again. Wide eyed, he looked between Claire and the body, half expecting Jareth to leap to his feet like some sort of nightmarish apparition and attack them again. "Claire, is he..."
Toby yelped and went stumbling backward when the dead man vanished into thin air. That was NOT normal.