Help this Poor Guy with a foul tip question

[More Cowbell]

Gentlemen and Ladies,

Every few years a conundrum comes my way, and I must seek the knowledge of the experts. I looked but couldn't find/understand an answer--I was the interim manager, so I wanted to keep my 1-0 record in tact.

AAA LL (So Cal 10/11 year olds)Two strikes, inside pitch nearly hits batter, but ball nicks bat and is caught by our catcher. There was no swing...just trying to get out of way. Ruling on field is foul ball. I politely asked why wasn't it a strikeout...the umpire said, "it has to be a swing attempt for a caught third strike foul tip."

The umpire called a very good game, but I don't know what the correct call is. Opposing coaches offered the same opinion as umpire. What say you experts? (And is this "protest-able"? Or a win-able protest?)
Thanks and keep up the lively discourse!