 In July 1342 Douglas was granted the Earldom of Atholl, which had been retained by the crown for some years.He was only to hold the earldom for a matter of months, before being compelled to resign title to King David's uncle, the High Steward of Scotland Robert Stewart (later Robert II of Scotland).In September of the same year, perhaps in recognition of his loss of the earldom, King David granted the forfeited lands of Sir James Lovell, in Eskdale and Ewesdale, to Douglas.