Nevertheless, the Upper Styrian House of Eppenstein had remained powerful in the Carinthian lands, making it difficult for foreign rulers appointed by the emperor to prevail against the local nobility.
Liutold regained the ducal title, as his predecessor, the Zähringen duke Berthold II had supported the German antiking Rudolf of Rheinfelden during the Investiture Controversy and therefore was deposed by King Henry IV in 1077.
The king, having returned from Canossa, appointed Liutold instead, who had given him safe conduct across Predil Pass and through his Carinthian possessions on his way back to Germany.
The Eppenstein domains however were significantly narrowed, as Henry gave the Veronese Friuli and Istria region to the newly established Patria del Friuli (Patriarchate of Aquileia), while the Carinthian March of Styria remained under the rule of the Otakars.
Liutold later accompanied Henry IV to his coronation in Rome and also had Eppenstein Castle rebuilt.