Tactically, you should have thought it out quite a bit sooner. Two things you could have done.
1) Pinched up a bit way before the layline. This would backwind the boat on your hip and they would have fallen lower. Then you would have been free to tack on your own layline call.
2) Drive off until you have enough room to make the tack to starboard without the possibility of them calling you for tacking too close.
Rick