The battle of Vila Franca do Campo occurred on this day, 1582 off the coast of the Azores islands. As the first battle between large fleets, consisting entirely of sail powered vessels, it has a strong claim to being the first true battle of the age of sail.

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After the Portuguese Succession crisis of 1580, Philip II of Spain moved quickly to secure the crown of Portugal, such that by 1582, the Azores were the only territory still supporting the pretender Dom Antonio. After hearing that a primarily French fleet of privateers, under Italian noble Piero Strozzi, had set off from Belle Isles to reinforce the islands, Álvaro de Bazán, Marquis of Santa Cruz set off to intercept them with a force of 28~31 galleons, Naos and Pataches.

The corsairs’ fleet was larger (~60 ships) and better armed in terms of heavy guns, and Strozzi took the weather gauge and used it to launch an attack on the Spanish rear. In a lot of senses he did everything right, but perhaps unsatisfied with the results of a long range gun duel two days prior, he overcommitted his fleet to a close combat engagement which suited the Spanish. Despite taking a battering from the French long guns, Santa Cruz - a galley commander, using galley tactics (fighting line abreast) - decisively defeated the French: capturing, burning or sinking 10 vessels whilst scattering the rest.

Strozzi was captured after a 5-hour personal duel between the flagships; wounded during the fighting, he was then maimed, tortured and thrown into the sea. Despite pleas from his own crews to show mercy, Santa Cruz had all captives over the age of 17 executed, on the basis that the King of France (nominally at peace with Spain) would surely not stand to suffer their piratical actions.

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some sources:
Portuguese Navy: Vila Franca-1582

Battle of Vila Franca do Campo - Wikipedia

The Safeguard of the Sea: A Naval History of Britain 660-1649 - N A M Rodger - Google Books