Wow. I'm kind of shocked that a play-off level umpire would call this, too. The rules don't prescribe an out here at ANY level of baseball or softball.
That a runner is out just for being touched by a player or coach is an age-old RULE MYTH. Yet it is a myth that just won't die. I can understand parents and casual fans, and maybe even coaches and players, not understanding this. But I absolutely cringe when I hear about an umpire enforcing this imaginary rule!
Besides this forum, I post on several other baseball, softball and umpiring discussion boards. Just in the last couple of weeks alone, I have seen this same issue raised in no fewer than a half-dozen different threads, from all over the country. And the season is still young! I expect it will rear its ugly head many more times before the season is over.
Thankfully, this bogus call didn't affect the outcome of the game. Still, I would really hope that the school's A.D. or coach would follow-up with whoever assigns umpires for their games. Any umpire that makes this call is in need of some serious re-education!