Exactly. Exactly the way it should be handled.
It's not a tough job...you either deliver the package to the correct person...or you don't... not rocket science...
I work in finance and I've seen people canned for a lot less- and we consider it serious... what if those were important legal documents, something sentimental or irreplaceable, etc? Maybe yours was "just" a watch but what about the next guy?
I'd make that case to him and wait for your 450 Euro...it's the least you should be reimbursed- this was no fault of your own- there is an identifiable party clearly "in the wrong".