Well other factions should not be attacking you nowhere near their fiefs...if you were near Ichamur LL had no business attacking you. They have a fief inside the steppe, but unless someone is a known enemy or taking their S&D, they shouldn't be attacking anyone in the steppe (nor should any other factions be policing the steppe)
I'll try to get a hold of Peppo or Aztek and see if they can straighten this out with LL (probably have them retreat once the battle starts, and then have you transfer the equipment back)