The Dwemer and Chimer attacked the Nords at Red Mountain, driving them from the land with "great slaughter."Jurgen Windcaller and his fellow Tongues, according to Emblem VII of High Hrothgar, "went away humbled."
The Nordic armies of Windcaller were annihilated, leading him to believe that the gods were punishing the Nords for their arrogant and blasphemous misuse of the Thu'um. 
This battle was a considerable setback for the Nords and was one of the factors leading to the end of the First Empire of the Nords.
The Elder Scrolls Online website lists the "Dwarves and Orcs" as having been allies of the Nords at this battle. However, other sources indicate that the Dwemer were allies of the Chimer, and fought against the Nords.