Never fear, a dude who worships FFT WOTL is here!
Anyway, I'm to assume you mean the merchant city of Dortor? It is most likely the first "tough battle".
My recomendation is when the fight starts, no matter how much you want to fight, go and follow Argath and Delita up that one building they love so much beacause there is strength in numbers and waiting on top of that building waiting on your enemy is easier then charging into the center of town and while distracted by the knight, getting blasted by magicks and arrows.
If you really just need leveling, I recomend finding enemies in the plains where you met argath. If there is a chocobo kill everything except it and surround it. Beat it to a pulp and when it gets ciritcal it will use chocobo cure and heal everyone around him.
(In case plan does not go perfectly, you can also get exp by beating up your own team. Keep chemists handy.)
Hope I helped!
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