Wolfson v. Dugout Northbrook, LLC

2025 IL App (1st) 232257
CourtAppellate Court of Illinois
DecidedNovember 12, 2025
Docket1-23-2257
StatusPublished

This text of 2025 IL App (1st) 232257 (Wolfson v. Dugout Northbrook, LLC) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wolfson v. Dugout Northbrook, LLC, 2025 IL App (1st) 232257 (Ill. Ct. App. 2025).

Opinion

2025 IL App (1st) 232257 SECOND DIVISION November 12, 2025 No. 1-23-2257

______________________________________________________________________________

IN THE APPELLATE COURT OF ILLINOIS FIRST DISTRICT ______________________________________________________________________________ ROSS WOLFSON and MATT MAHAY, ) Appeal from the Circuit Court ) of Cook County. Plaintiffs-Appellees, ) ) v. ) No. 17 CH 3384 ) DUGOUT NORTHBROOK, LLC; GK HOLSTE, LLC; ) KENT KNEBELKAMP; and PLAY BALL USA- ) NORTHBROOK/GLENVIEW, LLC, ) Honorable ) Thaddeus Wilson, Defendants-Appellants. ) Judge Presiding.

PRESIDING JUSTICE VAN TINE delivered the judgment of the court, with opinion. Justices Ellis and D.B. Walker concurred in the judgment and opinion.

OPINION

¶1 In 2014, Ross Wolfson, Matt Mahay, and Kent Knebelkamp formed Play Ball USA-

Northbrook/Glenview, LLC (Play Ball), which provided little league and baseball-related services.

Wolfson and Mahay (collectively “plaintiffs”) together owned 50% of Play Ball while

Knebelkamp owned the other 50%. At the beginning, the three owners co-managed the company.

However, disagreements on how to run the company arose, and ultimately, plaintiffs sued 1-23-2257

Knebelkamp to involuntarily dissolve Play Ball and divide its assets according to respective

percentage ownership. Plaintiffs eventually moved for summary judgment, and the circuit court

granted their motion on the involuntary dissolution claim, among others. The court also awarded

plaintiffs compensatory and punitive damages. Knebelkamp appeals the court’s summary

judgment order as well as its decisions to award compensatory and punitive damages. 1 For the

following reasons, we affirm.

¶2 I. BACKGROUND

¶3 A. The Complaint

¶4 On August 26, 2021, plaintiffs filed their fifth amended complaint, which is the operative

complaint in this appeal. They alleged as follows.

¶5 Plaintiffs and Knebelkamp formed Play Ball in November 2014. Play Ball provided little

league and baseball-related services to the community. Plaintiffs and Knebelkamp co-managed

Play Ball at the beginning. Plaintiffs collectively owned 50% 2 of the company, and Knebelkamp

owned the other 50%. In forming Play Ball, Wolfson invested $20,000.

¶6 Play Ball leased a facility located on a property owned by defendant GK Holste, LLC

(Holste), which Knebelkamp partly owned and managed. Holste agreed to pay all utilities and

provide approximately 6,400 square feet (about 25% of the entire property) in exchange for $4,000

per month in rent.

¶7 In 2016, disputes arose between plaintiffs and Knebelkamp regarding the management of

Play Ball. That same year, Knebelkamp took control over Play Ball’s accounting and finances.

1 In this decision, we use “Knebelkamp” to refer to Knebelkamp himself as well as his companies Dugout Northbrook, LLC, and GK Holste, LLC. 2 It is not clear from the pleadings exactly what percentage Wolfson and Mahay each owned, but it appears Wolfson’s share of Play Ball was close to 50%.

2 1-23-2257

Due to the disputes, the three owners agreed to divide Play Ball’s assets and alter its management

structure. That is, plaintiffs would terminate their positions as managers upon division of Play

Ball’s assets, and Knebelkamp would continue to run Play Ball, albeit under a different name.

Plaintiffs would retain rights to “Play Ball,” and Knebelkamp would refrain from using that name.

In late 2016, the three agreed that Play Ball would operate as “The Dugout” after the division of

assets. In other words, all three would continue to own The Dugout, but only Knebelkamp would

have managerial rights. Based on Knebelkamp’s agreement with plaintiffs as to the division of

assets, plaintiffs ceased managing the day-to-day operations of the business in November 2016.

¶8 However, Knebelkamp, after taking full control of the business, refused to divide the

company’s assets as previously agreed. He instead attempted to reduce Wolfson’s ownership

interest in the company from nearly 50% to 25%, stating this would be the only way that he and

Wolfson would continue as business partners. Wolfson refused the reduction.

¶9 At the time the initial disputes arose, Play Ball possessed the following assets: customers,

including both individuals and teams; computers; a HitTrax machine; catch nets; softball and

hardball pitching machines and mats; bats, balls, and helmets; plyo equipment; stretch bands; L-

screens; office and waiting room furniture; cameras, radar guns, and TVs; and softball and hardball

padding. Although Wolfson invested $20,000 in Play Ball’s formation, nearly all of Play Ball’s

equipment was paid for through ongoing business revenue.

¶ 10 Plaintiffs continued to attempt to find a resolution, but Knebelkamp refused to act in good

faith and participate in efforts to reach an agreement. On February 24, 2017, plaintiffs served

Knebelkamp a demand for the formal dissolution of Play Ball via U.S. mail, electronic mail, and

certified mail. Knebelkamp ignored the demand and continued to operate the business himself.

3 1-23-2257

¶ 11 In March 2017, Knebelkamp formed Dugout Northbrook, LLC (Dugout), which operated

until its dissolution in September 2018. Dugout’s business was identical to Play Ball’s and was

managed solely by Knebelkamp. Upon plaintiffs’ information and belief, Knebelkamp transferred

all of Play Ball’s assets to Dugout. This was all done to exclude plaintiffs from any control over

Play Ball’s assets.

¶ 12 Also in March 2017, Knebelkamp utilized his holding company, Holste, to lease the newly

founded Dugout entity the entire property that Play Ball had partially leased. That is, he leased the

entire 22,400 square foot property to Dugout (as opposed to the 6,400 square foot portion that Play

Ball previously rented). Upon plaintiffs’ information and belief, there is no way Knebelkamp could

have used the entire property for Dugout’s operations. Rather, he rented unused portions of the

property to other businesses. In exchange for renting himself his entire property through his

holding company, he collected $15,000 a month in rent from Dugout (while Play Ball’s rent was

previously only $4,000). Also, Knebelkamp agreed on behalf of Dugout to pay Holste’s monthly

utilities for the entire property in the amount of $15,000 (while Play Ball did not pay any utilities

as the utilities were covered by the $4,000 rent payment). In short, Knebelkamp agreed to pay

Holste — that is, himself — $30,000 a month to operate Dugout. That is, he operated a business

essentially identical to Play Ball, but for $26,000 more per month, and all the money was funneled

into his own holding company.

¶ 13 On September 16, 2018, Play Ball, through Knebelkamp, filed its 2017 partnership tax

return. The return indicated the company had a base income of $101,531. The return also indicated

that Wolfson, as a member of Play Ball, had a distributable base income of $50,022. Play Ball,

which was under the sole control of Knebelkamp, did not distribute Wolfson his portion of the

base income.

4 1-23-2257

¶ 14 Pursuant to the above-mentioned allegations in the fifth amended complaint, plaintiffs

alleged seven counts. 3 Knebelkamp does not challenge the rulings on counts VII and VIII, which

were decided in his favor. Additionally, there is no indication in his brief on appeal that he seeks

to challenge the court’s rulings on counts I and VI.

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2025 IL App (1st) 232257, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wolfson-v-dugout-northbrook-llc-illappct-2025.