I'm white

well done!

was this in live chess? can you provide a link to the game?

By "I flagged him" do you mean, his flag fell?  If so, a draw is correct.  What's the bug?

http://www.chess.com/livechess/game.html?id=9074990

If black ran out of time then the draw is correct.  I think there used to be a bug on this site where it would award a win to white in that situation, but unfortunately for you it's been fixed. 

When you time-out, the other player wins

Not necessarily.  I'll find the rule... hang on...

"6.10

Except where Articles 5.1 or one of the Articles 5.2 (a), (b) and (c) apply, if a player does not complete the prescribed number of moves in the allotted time, the game is lost by the player. However, the game is drawn, if the position is such that the opponent cannot checkmate the player`s king by any possible series of legal moves, even with the most unskilled counterplay."

From here

But he can checkmate me

But you cant checkmate him, so he cant lose on time.  He can win on time if your flag falls though. 

ShinoAburame timed out but it wasn't a draw. Is it because it's not live?

Probably it was before they fixed the bug.  There was a post in the forums I think, pointing out the bug when someone lost when they should have had a draw.  Looks like it's been fixed. 

You mean bjering, and he posted in the forums here. 

oh, I see you have already posted in that thread.  Yes, that thread started on sept 8.  Guess they fixed it pretty quickly!