scorp
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Let's look at the picture, discuss it, and share our thoughts. According to the rules of Life (Captain Black Knight) that Bayazet posted on the forum, you can't pick up a pile of sulfur without defeating the Orcs first. However, as we can see from the screenshot, it's impossible to attack the Orcs without picking up the sulfur first (the sulfur itself isn't particularly useful, but the Orcs are also guarding the Dwarves). It's located on the only tile that allows you to approach them.
If situations arise that are NOT described in the rules, you should ask your opponent. If you're not satisfied with the answer, ask the judge/captain (if there's such a provision in the rules!). If there's no provision for seeking help, then the interpretation is that if it's not prohibited by the rules, it's allowed, but you also need to use common sense here (and not just take the sulfur, the Dwarf, and leave).
Solution: He took the sulfur and killed the Orcs in the same turn (my interpretation).
Rules (I haven't seen them myself*): You can't pick up a pile of sulfur without defeating the Orcs first. This rule was written for normal/standard/un-bugged guards. If someone says that this rule was written specifically for blocked guards (where a direct attack is not possible)... draw your own conclusions about it.
P.S.: Why "not described in the rules" - there are no interpretations in the rules for this situation/blocked guards. (minor clarification)