hmmm... well I think just to start they both were at fault for having dogs off leash when they shouldn't - I love dogs, but it bothers me when people take their dogs out without a leash, no matter how well behaved they are things happen!
As for the rest, I don't know, it seems much of "he said, she said" kind of story, but I do think he shouldn't have hit the dog, I am sure he could have given a loud no and the dog would have moved. I also hope he didn't really punched that lady