Apparently Kendo UI Mobile is trapping and handling the click() event. I was able mimic the click event using:
$("#modalview-open-button").mousedown().mouseup(); // send "click()"
expect($("#modalview-login").is(":visible")).toBeTruthy();
I am also finding that sometimes the expect() code following the .mousedown().mouseup() is firing before the .mouseup() has completed so I am putting my test code in the callback.
$("#modalview-open-button").mousedown().mouseup(function() { // send "click()"
expect($("#modalview-login").is(":visible")).toBeTruthy();
});