The 2♣ bid was preceded by an insufficient 1♣ bid. The director was called, but on this particular night at the club, he was playing and neither he nor the other two club level directors in attendence had played the board yet. (This was the second round.) North said she was simply going to make the bid sufficient, and the director remarked that the new bid would not have the same meaning as a 1♣ opening bid. North-South play Michaels, so this is clearly the case.
I think that the ruling on the hand was not correct, once North bids 2♣ and that South should now be barred from the bidding for at least one round. (But I am not a director, so I may have this wrong. I assume just one round, but aren't there certain cases where IB's partner is barred for the rest of the auction?)
When South is not barred by the director, I would think that she has UI that North has a 1♣ and not a Muchaels bid. It would seem to me that if South treated 2♣ as Michaels, passing 2♠ is not a LA. In fact, I would think that once North bids 2♠, these is no LA to 4♥.
Would I be right in thinking that with a proper rulling, the final contract would likely have been 2♣ by North, most likely going down. Once South is not barred, 4♥ (or more) seems inevitable. This contract is almost certainly doomed.
Additioanl comments:
North had missorted her cards and had a spade amongst the clubs.
At the end of the night I considered asking the director to take a further look at this, but I found we already had a top. North found a way to take only 9 tricks when everyone else was taking 10 if they played in spades. One North played 3NT had made 5 (bad defense I suppose.)