I'd be curious to know which companions you are using in this battle, that they are being defeated so quickly. Swashbucklers? Did you try it with some buccaneers with some range of movement, like Ratbeard? Or ranged attackers like Bonnie Anne? If you are using the same team over and over again, your solution may be to change it up.
IGNORE THE ENEMIES and concentrate on the fires. The reason we have companions of differing abilities is that some of them are better in certain situations. Avoiding training them, either via tomes or the Brawling task serves only to handcap your team in the long run. At higher levels, gold is plentiful -- the daily Party Barge quests at your level 21 will give you 20,000 gold per day.
Alternatively, you can make a friend and form a group, thereby going into the instance with more than one pirate. This would give you twice as many allies who could put out fires.

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