Batting out of order - what is the proper action?

Batting out of order is anything but simple. Please allow me to change the names on your scenario for clarification.

Batting Order
#10 Abel
#5 Baker
Charles
Daniel
etc.

#10 Abel is due up.
#5 Baker steps in improperly

At this point, and until Baker completes the at-bat, if either the defense or the offense notice the batting out of order and bring it to the umpire's attention - no one is called out and #10 Abel takes #5 Baker's place at the plate and takes over any balls and strikes.

#5 Baker, the improper batter, is walked.

Here, before another pitch to the next batter or any play or attempted play, if the DEFENSE (only) appeals to the umpire #10 Abel is called out for not batting in his proper turn. #5 Baker is removed from the bases and #5 Baker bats again because he properly follows #10 Abel (the proper batter) in the batting order.

So in your situation, because the defensive manager called time after #5 Baker (the improper batter) completed the time at bat (walked) AND before any pitch to the next batter or any play or attempted play, #10 Abel is called out for batting out of turn, #5 Baker is removed from the bases and the next batter is the batter whose name follows #10 Abel in the batting order. In this case it is #5 Baker. As strange as it seems #5 Baker gets two at-bats in a row.

Now, if a pitch HAD been thrown to #10 Abel, that one pitch legitimizes #5 Baker's at-bat and #5 Baker is the proper batter. That makes #10 Abel an improper batter because Charles follows Baker in the batting order. Charles is the proper batter instead of Abel. Abel has lost his chance to properly bat when Baker's improper at-bat was legitimized by a pitch to the following batter.

I hope that's clear. This is awfully tough to explain. And don't be too rough on a Little League umpire who may blow this call. It is very confusing to everyone - the umpire is included.

Sincerely,
Jim Porter