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South didn't say anything after the biding was over. I don't know if he must alert opponents of this, or he just "should". Or if he might face any penalties for not doing so.
'must': Law 20F5B. It is not normal to penalise for this, but the benefit of doubt will be towards the opponents now: if he had told them at the right time, and then they went wrong in the defence he would have got the benefit. But this assumes the explanation was wrong.
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EW argued that the first 2 mistakes were greatly influenced by the missexplanation given by north but Director decided that the defence was so horrible that it deserved to stand the result.
Oh yes? And where is this in the Law book, may I ask? Law 12C1B gives a standard for denying part or all of the redress for the non-offending side, but the TD is still required to adjust against N/S. N/S appear to have found a very generous TD!
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I see a couple of problems here. First, North made a bare-minimum bid with a huge double fit for partner; his actions are suspicious at best.
In England we look at fielded misbids, and this looks a bit like one. Elsewhere [where was this?] the concept seems unknown, but a fielded misbid is a breach of Law 40.
Putting it simply, there are only two reasons why North bid only 2
♥. Either he is an extremely poor player ["I only had four points"

] or he has seen this partner get this 2
♣ bid wrong before. If the latter we have a concealed partnership understanding.
I suppose there is another possibility: despite what he told the opponents, perhaps he was not sure himself what the 2
♣ meant. This excuses the 2
♥ bid but not the explanation.
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However I do believe that there was a "failure to play bridge" on defense here, because with a void in dummy, a singleton in hand, and south with 2 (or maybe 3 at the most if the michaels bid was made with 5-4), east must have at least 9 clubs, and quite possibly 10. This is impossible according to the auction so west should have woken up and asked what's up with the 2♣ bid.
A "failure to play bridge" is only a reason to deny redress in the ACBL: the standard elsewhere is shown in Law 12C1B. Was this in the ACBL?
N - E - S - W
ps-1♣-2♣!-ps
2♥-ps-2♠-ps
3♠-ps-4♠-X
ps-ps-ps