Penalty Doubles not alerted
Your comments please:
The bidding went 2H (announced by west as weak) - x- 3H -x (north) and after a lot of thinking South passed and all passed . The contract was 3Hearts doubled. During the Clarification Period , East (as declarer) asked South if the double by North was a penalty double and he said that he took it as such. East said that the double by North should have been alerted if it was for a penalty double and therefore East wanted to reserve his rights. The director was called and he ruled that there is nothing to reserve the rights. Director said South took it as a penalty double and even if it was alerted as Penalty, what could East have done - end up in 4 hearts and do down even more? South was not told by the director he should have alerted partner's penalty double nor he agreed to look at the hand at the end of the session nor would he allowed East to reserve his rights.
How should the Director have handled this call in terms of applying the law when he was called by East ?