Quote
Our card says double through 4H is takeout.
IMO, what's on the card refers to doubles in
direct seat, not all doubles, anywhere. You didn't double 1
♥ so you don't, apparently, have a takeout double at that level. Yet in the passout seat, after a weak raise to game by responder, you did double. I would have expected it to be penalty, as well. If you had a hand which might have doubled 1
♥ but didn't because it was flawed somehow (not ideal distribution, lack of high cards, too many trumps) I don't see how the auction now being at the four level makes a takeout double any less flawed.
If this hand has a penalty double of 1
♥, it would pass because double would be takeout, hoping partner might make a reopening (takeout) double, which can be passed.
"Nice spades" might also consider a 1
♠ overcall. Yes, I know it's a four card suit. Read Mike Lawrence's book on overcalls - though I think he'd opt for double on the hand as described.