I got irritated that they gave it to someone else, so I rejected that and kept it, now I am stuck in a bug. I make peace with Northumberland who is happy to do it because they got big problems, but then a few seconds later it says I declared war on Northumberland and it is back to battle. Then I declared war on Alban and started taking more castles and found out at that point I could not assign any fiefs to my companions. So I am stuck in some kind of unknown lord status.