Judging the Axe is part of the Story of the Axe questline, where you're supposed to hand over axes dropped by dark axe stumps to the God of Mountains NPC. The quest works, but only when you have one axe in your inventory, if you have more than one, you'll receive an error. The solution is to drop the rest of the axes so that you only have 1 in your inventory whenever you start the quest. I'm assuming that this isn't how it was intended to work, nonetheless a minor bug.
