Thorbfron Oxmain took up the suit arising from the death of Thorir's sons. He prepared his case against Grim and Atli, and they prepared their defence on the grounds that the brothers had attacked them wrongfully and were, therefore, "ohelgir." The case was brought before the Hunavatn Thing and both sides appeared in force. Atli had many connections, and was, therefore, strongly supported. Then those who were friends of both came forward and tried to effect a reconciliation; they urged that Atli was a man of good position and peacefully disposed, though fearless enough when driven into a strait. Thorbjorn felt that no other honourable course was open to him but to agree to a reconciliation. Atli made it a condition that there should be no sentence of banishment either from the district or the country. Then men were appointed to arbitrate: Thorvald Asgeirsson on behalf of Atli, and Solvi the Proud on behalf of Thorbjorn. This Solvi was a son of Asbrand, the son of Thorbrand, the son of Harald Ring who had settled in Vatnsnes, taking land as far as Ambattara to the West, and to the East up to the Thvera and across to Bjargaoss and the whole side of Bjorg as far as the sea. Solvi was a person of much display, but a man of sense, and therefore Thorbjorn chose him as his arbitrator.

The decree of the arbitrators was that half penalties should be paid for Thorir's sons and half should be remitted on account of the wrongful attack which they made and their designs on Atli's life. The slaying of Atli's man at Hrutafjardarhals should be set off against the two of theirs who had been killed. Grim the son of Thorhall was banished from his district and the penalties were to be paid by Atli. Atli was satisfied with this award, but Thorbjorn was not; they parted nominally reconciled, but Thorbjorn let drop some words to the effect that it was not over yet if all happened as he desired.

Atli rode home from the Thing after thanking Thorvald for his assistance. Grim the son of Thorhall betook himself to the South to Borgarfjord and dwelt at Gilsbakki, where he was known as a worthy bondi.