Dropped 3rd Strike with bases loaded and 1 out

Question
In a U12 ASA girl's fastpitch game last night, a situation occured that caused some questions. Bases were loaded, there was one out, and a strike out occured, but the catcher couldn't hold onto the ball. She retrieved it and stepped on home plate. The batter kept running and the catcher threw the ball down to the 1st baseman. The catch was made and the base was tagged. When the ball was thrown the runner on 3rd advanced and scored. What is the correct call on this?

The umpire originally called it 2 outs and no run scored. Then the other team balked and he over turned it and said the run count and the batter was the only out.

Thank you for your input!

Answer
Hello Carolyn

A batter is automatically out when a third strike is not caught by the catcher and when first base is occupied with less than two outs. The runners are not forced to advance but they can run at their own risk. And if they do so, a tag is required since this is not a force play.

Without this rule a catcher could intentionally drop a third strike and create an easy double play.