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KleopatR, I don't understand your frustration. As I understand it, you were playing on a map with water and dwellings located in the corner of the map. There is indeed a lot of money to be earned on the water (and the fact that he cleared your water is a disadvantage for you). Plus, there's a dwelling there too. You encountered him with three dragons, while you didn't have any angels. BUT you didn't take into account that: a) he might not have had all the dragons at the time of the encounter; the hiring might not have been completed. b) the dwelling gives a +1 bonus in the castle. c) the creature portal is decisive.
So, 3 dragons initially (1 in the first week of construction and 2 in the next) +