The summer after this winter, when he became Earl Hacon's liegeman at Yuletide, Sigmund fared up country with the Earl to the Frosta-moot, and there Sigmund opened the case of Thorkel his father-in-law to the Earl praying him that he would inlaw him and give him his land to hold freely. And Earl Hacon quickly gave Sigmund his asking. Moreover, he let send for Thorkel and his kindred, and Thorkel and his wife stayed with Earl Hacon that winter, and Thurið their daughter also. She had brought forth a woman-child the summer that Sigmund went away, and the maid was called Thora. The next spring Earl Hacon gave Thorkel Dryfrost a reeveship out in Orkdale, and there Thorkel set up his homestead, and there he abode all the time that this story tells of. Soon after this Sigmund rode out to Orkdale to see Thorkel, and he welcomed him kindly. Then Sigmund did his errand and asked for Thurið in marriage. Thorkel took his request well, and thought that honour and worship would come of it both to himself and his daughter and to them all. Sigmund drank his bride-ale with Earl Hacon at Hlathe, and the Earl kept the feast up for seven nights; and Thorkel Dryfrost was made Earl Hacon's henchman and became a dear friend of his. After that they fared home, but Sigmund and his wife abode with the Earl till the harvest-tide, when he went out to the Færeys, and Thurið his wife and Thora his daughter with him.
There was peace in the islands that winter. In the spring men fared to the moot in Streamsey, and much people came thither, Sigmund also and his following with him. Thrond came thither, and Sigmund asked for the second third of his money, and told him that he ought by right to have all, but he would not, for the sake of them that begged him not to require it now. Thrond answered, "It hath so happened, kinsman," said he, "that the man named Laf the son of Ossur is abiding with me. I bade him to my home when we two were set at one. Now I pray thee, kinsman, give Laf some set-off for the sake of his father Ossur, whom thou slewest, and let me pay him the money of thine that I owe thee. ""I shall not do so," said Sigmund, "but thou shalt pay me my money. ""Nay, but it must seem best to thee [to do as I say]," said Thrond. Sigmund answered, "Pay thou the money or worse shall come of it. "Then Thrond told out a half of the third, and then said that he was not ready to pay any more. Then Sigmund went up to Thrond, and he had the silver-mounted axe in his hand that he slew Ossur with, and set the axe-horn to Thrond's breast, and told him that he would thrust it deep enough for him to feel it sorely unless he told him out the money then and there. Then spake Thrond, "A troublesome man art thou," said he, and bade his men go into his booth for the money-bag that lay there and see whether there was any silver still over. He went and brought the money-bag to Sigmund, and the money was weighed and it did not come up to what Sigmund ought to have had. With that they parted.
That same summer Sigmund fared to Norway with Earl Hacon's scot, and was welcomed of him there, and abode a short while with the Earl, and then fared back to the Færeys and sat there through the winter. His kinsman Thore was ever with him. Sigmund was much beloved out there in the islands. He and Swiney-Bearne kept the settlement that was between them well, and Bearne ever came between Sigmund and Thrond or worse would have happed. In the spring men fared to the Streamsey-moot, and much people came thither. Sigmund asked Thrond for his money, but Thrond asked for weregild in the name of Laf Ossursson for his father. And many men spoke up in the matter that they should make a good settlement. Sigmund answered, "Thrond will pay Laf no better than he pays me, but for the sake of good men's words the debt shall stand over, but I do not give it up and I do not pay it as weregild. "With that they parted and went home from the moot.
Sigmund gat him ready to fare to Norway in the summer with Earl Hacon's scot, and was late bound. He sailed for the deep sea as soon as he was bound. Thurið his wife stayed behind, but Thore his kinsman went with him. They made a good run, and made Throndham late in the harvest-tide. Sigmund went straight to Earl Hacon and was welcomed by him.
Sigmund was seven and twenty winters old when this happened. He stayed on with Earl Hacon.