Rival lord in same faction.

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So there's the lord in the faction I'm in (Jarl Bagsecg) and everyone hates him. He owns a castle right near my village and my relation with him is like -30. I've plotted against him with other lords like Sigurd and Sigfrid by asking how do we advance our standings in the realm. I've duelled with him twice and told the King what we think about him twice (denounce lord and tell King quests). And now I have a dialogue  option when talking to this lord that goes something like this, "Jarl Bagsecg, I have had enough of your insolence, it's time to teach you a lesson once and for all!" And I battle his army. Do I get his castle after this? I tried doing it and when I defeated him nothing happened he just lost his army so I loaded a previous save. Can I get his castle by defeating him? What's the point of this feature? What can I get by defeating my rival in battle?
 
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