Scoring: IMP
E..... S(you) W..... N
1NT* Dbl Pass 2♦
Pass Pass 3♦** Pass
3♥ 3♠ 4♥ 4♠
Dbl Pass Pass Pass
* Alerted, not asked. Apparently 10 - 13.
** Alerted and explained as Lebensohl, Stayman without stopper in ♦.
Pass did not force Redbl.
West meant 3♦ simply as any forcing and had a ♦ stopper. Partner had no HCP with 3163.
South's argument: the "no stopper" made it more attractive to bid and he would not have bid 3♠ if the explanation had been "general forcing".
4♥ can be made or go down depending on trump decision (8 ever 9 never or finesse vs you): -620 / +100. 4♠x was -800.
Your decision as director?

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