The story starts with the relationship between Odd son of Ufeig and Uspak son of Glum; Uspak is the nephew of Grettir. Odd, with little help from his father, became rich and Uspak was known for his difficult character. Uspak asks to live with Odd at the latter's home; Odd agrees because of Uspak's connections even though he is aware of the man's reputation. Things go well until Odd wants to make a trading trip. He has to talk Uspak into becoming his steward and priest, although Uspak actually wants to do those things. While Odd is away, Uspak woos a rich woman named Swala and moves to her lands after a falling-out with Odd over the priesthood after Odd comes home.
Although everything went fine while Odd was away, after Uspak moves out Odd's animals start to go missing and Vali, who was raised by Odd's father and now lives with Odd, promises to find out if Uspak stole them as Odd suspects. Vali tells Uspak that he is suspected, and is killed later when he and Odd visit Uspak's home by mistake for Odd. Odd tries to bring Uspak to trial but makes a legal mistake and fails.
Going home disappointed, Odd meets his father, who promises to take on the case if paid what Odd would have paid anybody else who could have fixed things. Ufeig gets the jurymen to agree to do what they want to do, condemn somebody as infamous as Uspak, and get paid into the bargain, in spite of the legal technicality.
The bribe is suspected by Thorarin, father of Uspak's wife, and his friend Styrmir, and they form a band with six other men to take Odd to court and hopefully fine him of all his money.
The rest of the story is about Ufeig's handling of the case and its outcome.