Lord Liam is one of the nine original Sidhe, and founder of House Liam.
After he was killed by a dragon, Liam's fae nature was changed. He rejected the ways of rulership and formally disbanded his House [though this didn't actually result in the fundamental disruption of the House; neither Lord Liam's announcement nor Lady Fiona's rejection of the House could do that].
[The following is the story of Liam's death, in its original form (when it was more a story about the nature of Fiona). It takes place after the Battle of the Riven Mountain (and probably after the Siege of Arcadia as well, though perhaps not).]
The basic outline is as follows:
The Sidhe are holding a masqued ball in a castle on a hill. It's a winter's evening; there is snow on the ground, the moon is full, the sounds and lights of the festivities barely reach the village that lies below. The Sidhe are in their most ornate finery, faces hidden from each other, dancing to a music that comes from all around. Not a foot goes wrong, no toes are trodden on.
Down in the valley, a stranger enters the village. He goes to the inn, where there are few patrons, it being a chill night and late. The stranger asks who lives at the castle, and is told that the castle, and the hill it rests on, is the domain of Lady Fiona of the Sidhe, and that tonight she is holding a celebration to mark the assumption of the Sidhe to their position of rulership. The stranger is curious to see these new lords, and enquires whether anyone is willing to escort him up to the castle gates. Most of the patrons dare not do such a thing, for the castle lies outside the village, and is its own realm. However, one agrees to accompany him, and together they set off.
When they get to the castle gates, the stranger thuds the great knocker loudly. The music falters, the lights dim, and after a long while the gates open, and a Sidhe in a mask greets them. The villager soon runs off, back to the village, frightened by ??? The stranger gets himself invited in, and doffs his cloak to reveal a most suitable costume, complete with mask. He enters the ball room and joins the dance. At first all is well, and the Sidhe are much impressed by the newcomer's grace. But soon disruption occurs, for all the Sidhe wish to dance with this stranger; they fall out of step in their desire to be his next partner. The music falters (again) when one of the Sidhe stumbles and falls against the stranger, and drops to the floor dead. The stranger continues to dance, and the music starts up slowly, but it is changed. The other Sidhe find themselves dancing in a new style, in new steps, revolving around the stranger, spinning in closer and then out again.
But one Sidhe continues to dance according to the old music, knocking other Sidhe out of the way, pushing them to the edges of the ballroom. Soon it is only she and the stranger in the dance area, the two dancing completely differently. The Sidhe grows brighter and taller, while the stranger becomes larger and misshapen. Finally they end up face to face, and the Sidhe calls for the unmasking. Both of them remove their masks, and the Lady Fiona is revealed, and the stranger displays also his true form as a Dragon. The Lady Fiona invokes some custom (this is important; it's a deep custom that is in some way binding on both Sidhe and Dragons), and the two leave the hall and climb up onto the battlements. There they continue their dance, only now each is armed, Lady Fiona with her blade and the Dragon with tooth and claw. The Dragon is driven off, and descends to the village, where it begins to destroy homes and eat people. Lady Fiona follows, and once more drives off the Dragon. And in this way her realm is increased, and she becomes the ruler of both her castle and the surrounding lands.