At that time there came over Iceland a famine the like of which had never been seen before. Nearly all the fisheries failed, and also the drift wood. So it continued for many years.

One autumn some traders in a sea-going ship, who had been driven out of their course, were wrecked at Vik. Flosi took in four or five of them with their captain, named Steinn. They all found shelter in the neighbourhood of Vik and tried to rig up a ship out of the wreckage, but were not very successful. The ship was too narrow in the bow and stern and too broad amidships. In the spring a northerly gale set in which lasted nearly a week, after which men began to look for drift.

There was a man living in Reykjanes named Thorsteinn. He found a whale stranded on the south side of the promontory at the place now called Rifsker. It was a large rorqual, and he at once sent word by a messenger to Flosi in Vik and to the nearest farms.

At Gjogr lived a man named Einar, a tenant of the Kaldbak men whom they employed to look after the drift on that side of the fjord. He got to know of the whale having been stranded and at once rowed across the fjord in his boat to Byrgisvik, whence he sent a messenger to Kaldbak. When Thorgrim and his brother heard the news they got ready to go with all speed to the spot. There were twelve of them in a ten-oared boat, and six others, with Ivar and Leif, sons of Kolbeinn. All the farmers who could get away went to the whale.

In the meantime Flosi had sent word to his kinsmen in the North at Ingolfsfjord and Ofeigsfjord and to Olaf the son of Eyvind who lived at Drangar. The first to arrive were Flosi and the men of Vik, who at once began to cut up the whale, carrying on shore the flesh as it was cut. At first there were about twenty men, but more came thronging in. Then there came the men of Kaldbak with four ships. Thorgrim laid claim to the whale and forbade the men of Vik to cut, distribute, or carry away any portion of it. Flosi called upon him to show proof that Eirik had in express words given over the drift to Onund; if not, he said he would prevent them by force. Thorgrim saw that he was outnumbered and would not venture on fighting. Then there came a ship across the fjords, the men rowing with all their might. They came up; it was Svan of Hol from Bjarnarfjord with his men, and he at once told Thorgrim not to let himself be robbed. The two men had been great friends, and Svan offered Thorgrim his aid, which the brothers accepted, and they attacked valiantly. Thorgeir Bottleback was the first to get on to the whale where Flosi's men were. Thorfinn, who was spoken of before, was cutting it up, standing near the head on the place where he had been carving. "Here I bring you your axe," said Thorgeir. Then he struck at Thorfinn's neck and cut off his head. Flosi was up on the beach and saw it. He urged on his men to give it them back. They fought for a long time and the Kaldbak people were getting the best of it. Most of them had no weapons but the axes with which they were cutting up the whale and short knives. The men of Vik were driven from the whale on to the sandbanks. The men from the East, however, were armed and able to deal wounds. Their captain Steinn cut off the leg of Kolbeinn's son Ivar, and Ivar's brother Leif beat one of Steinn's men to death with a rib of the whale. Then they fought with anything they could get, and men were slain on both sides. At last Olaf came up with a number of ships from Drangar and joined Flosi; the men of Kaldbak were then overpowered by numbers. They had already loaded their ships, and Svan told them to get on board. They therefore retired towards the ships, the men of Vik after them. Svan on reaching the sea struck at Steinn their captain, wounding him badly, and then sprang into his own ship. Thorgrim gave Flosi a severe wound and escaped. Olaf wounded Ofeig Grettir fatally, but Thorgeir carried him off and sprang on to his ship with him. The Kaldbak men rowed into the fjord and the two parties separated.

The following verse was composed on these doings:

After this they made peace, and the dispute was laid before the All-Thing. On the side of the Kaldbak men were Thorodd the Godi, Skeggi of Midfjord, and many others from the South. Flosi was exiled, along with several others who had been with him. He was put to great expense, for he insisted upon paying all the fines himself. Thorgrim and his brothers were unable to show that they had paid any money either for the land or for the drift which Flosi claimed. The Lawman was Thorkell Mani, and the question was referred to him. He declared that by law something must have been paid, though not necessarily the full value.

"There was a case in point," he said, "between my grandfather Ingolf and a woman named Steinvor the Old. He gave her the whole of Rosmhvalanes and she gave him a dirty cloak for it; the transfer was afterwards held to be valid. That was a much more important affair than this. My advice is that the land be divided in equal portions between the two; and henceforward it shall be legally established that all drift shall be the property of the owner of the land upon which it has been stranded."

This was agreed to. Thorgrim and his brothers were to give up Reykjarfjord with all on that side, and were to keep Kamb. For Ofeig a large sum of money was paid, and Thorfinn was assessed at nothing at all; Thorgeir received compensation for the attack made upon his life, and all the parties were reconciled. Flosi went to Norway with Steinn the captain and sold his lands in Vik to Geirmund Hvikatimbr, who lived there thenceforward.

The ship which Steinn's sailors had built was rather a tub. She was called Trekyllir—Tree-sack. Flosi went on his journey in her, but was driven back to Oxarfjord; out of this arose the saga of Bodmod the Champion and Grimolf.