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He died soon after and was buried at Bjarg, where he had had a church built. All felt his loss deeply. Atli became a great bondi and kept a large establishment. He was a great dealer in household provisions. Towards the end of the summer he went to Snaefellsnes to get dried fish. He drove several horses with him and rode from home to Melar in Hrutafjord to his brother-in-law, Gamli.
At the same time Balki and Hallvard sailed westwards, to Iceland, where they had heard that good land was available for occupation. Balki took up some land at Hrutafjord, and had his abode in two places called Balkastad. Hallvard occupied Sugandafjord and Skalavik as far as Stigi, where he lived.
Thorsteinn said that his enemies were now becoming so numerous that few would care to take him in; but told him to go to Myrar and see what he found there. So in the autumn he went to Myrar. There lived in Holm Bjorn the Hitdale Warrior, who was the son of Arngeir, the son of Bersi the Godless, the son of Balki, who was the first settler in Hrutafjord, as has already been told.
Grettir was a first-rate hand at forging the iron, but was not often inclined to work at it. He was very quiet during the winter so that there is not much to relate. The men of Hrutafjord heard that Grettir was with Thorsteinn, and gathered their forces in the spring. Thorsteinn then told Grettir that he must find some other hiding-place for himself, since he would not work.
First he went to Melar in Hrutafjord and recounted to his brother-in-law Gamli all his adventure with Thorbjorn. Gamli begged him to betake himself away from Hrutafjord while the kinsmen of Thorbjorn were abroad with their men, and said they would support him in the suit about Atli's slaying to the best of their power.
There was a daughter named Thordis, who afterwards married Glum the son of Ospak, Kjallak's son from Skridinsenni. Another daughter was named Rannveig; she married Gamli the son of Thorhall of Vineland, and they dwelt at Melar in Hrutafjord and had a son named Grim.
Then Snorri the Godi spoke: "Men of Hrutafjord! Are you willing now to agree to the remission of the fine in consideration of Grettir's sentence being commuted? I expect that as an outlaw he will bite you sorely." Grettir's kinsmen welcomed this proposal, and said they did not care about the money if Grettir could have peace and freedom.
He was the son of Arnor Downy-Nose, the son of Thorodd who had settled in that side of Hrutafjord which lies opposite to Bakki. Thorbjorn was of all men the strongest, and was called Oxmain. He had a brother named Thorodd, called Drapustuf. Their mother was Gerd, daughter of Bodvar from Bodvarsholar. Thorbjorn was a great swashbuckler and kept a large troop of followers.
Kormak's men on one side and those of Bjarg on the other seized their arms, but the men of Hrutafjord and Vatnsnes came between them and parted them. They all went home in great wrath, but kept quiet for a time. Atli said very little, but Grettir rather swaggered and said that they should meet again if he had his way. There was living in Thoroddsstad in Hrutafjord a man named Thorbjorn.
Other outlaws heard of his having come there and wanted to go and see him, thinking that he would be a great protection to them. There was an outlaw from the North named Grim. This man was bribed by those of Hrutafjord to kill Grettir. They promised him pardon and money if he succeeded. He went to visit Grettir and asked for his hospitality.
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