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In the autumn Thorgils sent a messenger to Thorsteinn Kuggason to try and arrange a settlement. Thorsteinn was very disinclined to accept any money in atonement for the slaying of Thorgils, although for the others he was willing to follow the advice of men of counsel.

There seemed a prospect of his growing into something quite extraordinary, but he died when he was seventeen and there is no saga about him. After the death of Thorsteinn Kuggason, Snorri the Godi was on bad terms with his son Thorodd and with Sam the son of Bork the Fat.

Then Grettir rode to the West across the Laxardal Heath and did not stop before he reached Ljarskogar, where he stayed some time in the autumn with Thorsteinn Kuggason. Thorodd Drapustuf now made inquiries who it was who had killed Thorbjorn and his son. They went to Reykir, where they were told that Grettir had proclaimed the slaying.

He stayed there several days and heard of Thorsteinn Kuggason having been slain in the autumn before he went to Bardardal. Fate, he thought, was striking hard against him. Then he rode South to Holtavarda Heath, intending to revenge the death of Hallmund if he could meet with Grim. On reaching Nordrardal he learnt that Grim had left two or three years before, as has already been related.

Thorsteinn Kuggason was equally responsible in the blood-feud over Thorgils' death with Asmund Longhair, who now sent for him. Thorsteinn was a great warrior and very masterful. He came at once to his kinsman Asmund and they had a talk together about the suit. Thorsteinn was for extreme measures.

During the autumn Grettir returned to the South and did not stop till he came to his kinsman Thorsteinn Kuggason in Ljarskogar, who welcomed him. He accepted Thorsteinn's invitation to stay the winter with him. Thorsteinn was a man who worked very hard; he was a smith, and kept a number of men working for him. Grettir was not one for hard work, so that their dispositions did not agree very well.

Afterwards, Vermund, the son of Thorgrim, had Thorbjorg for wife. Their daughter was Thorfinna, whom Thorstein Kuggason had for wife. Olaf Peacock had many costly cattle. He had one very good ox named Harri; it was dapple-grey of coat, and bigger than any other of his cattle.

As the summer passed Grettir began to long for the habitations of men, and to see his friends and kinsmen. Hallmund told him to visit him when he returned to the South and Grettir promised to do so. He went westwards to Borgarfjord and thence to Breidafjardardalir and sought counsel of Thorsteinn Kuggason as to where he should go next.