Dead men of Dunharg

[Henry]

The card hits any Army of Sauron and forces it to retreat. The German card said ".. then(!) recruit three normal units".

Now, when the area was occupied from Sauron, it is not possible to recruit units there, even when the army retreated, right?

[Krieghund]

Yes. Normally you may not recruit in a Settlement that's controlled by the enemy. However, the card overrides the rules and allows you to recruit there, returning the Settlement to your control.