The CA was wrong. Circling minima apply for all runways unless otherwise noted. I suppose some states vary, as shown on this thread.
The Jepp chart ref states that the circling MDH is based on the airport elevation, not the runway elevation. That's further proof that the circling minima wasn't developed with a specific runway in mind.
I wouldn't crucify the guy though, even if he's a training CA. He IS human right...?