In 1196, Harold Maddadson, who through the ambition of Gormflaith had, as we have seen, designs on Ross and Moray, sent an expedition southwards to occupy those districts, of which probably Gormflaith’s father, Malcolm MacHeth, had been Earl at his death after 1160.  But William collected an army,[37] and, after defeating Harold’s son Thorfinn near Inverness, crossed the Oykel, entered Sutherland, subdued it and Caithness, and pursued Harold up to his castle at Thurso, and destroyed it in his sight.  Harold then submitted, and promised to surrender his son and heir, Thorfinn, as a hostage, with others of his friends to be delivered to the king at Nairn.  Harold left all his hostages close by at Lochloy, and went alone to the king at Nairn, and endeavoured to excuse himself by offering two grandsons to the king and stating that Thorfinn was his heir[38] and could not therefore be given up; but was taken prisoner himself and lodged in Edinburgh Castle, till his son Thorfinn came to take his place.  On this occasion Harold Maddadson was deprived of Sudrland or Sutherland, which had been given to Hugo Freskyn; and in the next year, or soon after, half of the earldom of Caithness, which the Flatey Book states Jarl Ragnvald had held,[39] was conferred by King William the Lion on Harald Ungi or The Young, as grandson of Jarl Ragnvald, and son of Eric, who, however, had to make good the grant by conquest.  Harald Ungi had, as stated above, already obtained a grant from King Sverri of half Orkney by a visit to the Norwegian Court.

In order to enforce his rights under both these grants, Harald Ungi collected a force, and, together with Sigurd Murt, and Lifolf Baldpate, the first husband of his youngest sister Ragnhild, invaded Orkney, while Harold the Old fled to the Isle of Man; but, on his namesake following him thither, he doubled back to Orkney, and, after killing all the adherents of his enemies there, crossed over to Caithness with a strong force.  In a pitched battle “near Wick,” said to have been fought at Clairdon near Thurso, he slew Harald Ungi, and utterly defeated his army, in 1198.[40] Harold the Old then endeavoured to make terms with the king, and offered him a large sum for the redemption of Caithness.  The king, however, attached as conditions to any regrant, that the earl should put away Gormflaith, the daughter of MacHeth, and take back his wife, Afreka of Fife, and deliver up Laurentius, his priest, and Honaver, son of Ingemund, as hostages.[41] The earl, on his part, refused the terms; and, the earldom thus remaining forfeited, King William at once invited Ragnvald Gudrodson, the great Viking king of the Sudreys and Man, and then his friend and ally, to assemble a force and drive Harold out of Caithness, promising to confer that earldom upon his general, if successful in the campaign.