In this situation, I'd agree with the decision. Beyond the specific parameters, though, it gets tougher.
In a bigger event, he wouldn't get his buy-in back, nor should he.
On the meta level, life doesn't stop for poker (he had to leave) but neither should poker stop for life. Thus he theoretically should be out of luck. Go a little further down the road in the tourney, and the room can't make the decision they made and be fair to the other players.
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