High School boys varisty game last night. Player from Team A jumps to catch the ball as he is going out of bounds, and calls a time out. My partner, who is the lead and is at the baseline, grants the time out. Is that correct? Is there a rule that says, you can't call a time out to save the ball?

Your partner made the correct call as long as 2 things were met......1. the players last step was in bounds, and that the player got control of the ball in the air. If those 2 things were met, then yes the time out should be granted, the same applies for NCAA, just not in the NBA.