The problem is caused by a little obscure difference in HTML/CSS web standards. I suspect that you are using an XHTML 1.0 Transitional DOCTYPE. In this case inline-block elements ignore the vertical-align property if they have no sibling text nodes. The issue is not exhibited with other DOCTYPEs. You have two options:
+ change the DOCTYPE to XHTML 1.0 Strict, XHTML 1.1 or HTML 5
+ use the following CSS rule to add a phantom text node:
Since there have been a couple of reports for this phenomenon, we will include the fix in future versions of Kendo UI.
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