Illegal dribble?

[just another ref]

whole thing, but I remembered the whole story. The play in question occured during a 11-12 year old boys scrimmage. I was coaching one of the teams and calling the game by myself from the center of the floor. Other team point guard dribbled the ball off my players foot. He sprinted all the way across the court and recovered the ball at the sideline with two hands. He started a new dribble and about this time I saw that he had stepped on the sideline. I whistled the play dead and told the other coach (the player's dad) "Out of bounds, and that would have been a double dribble anyway."
He immediately said, like others here, "No! Not if the defense touched it." There was no question of this being called a pass. I told him I thought I was right but would double check the rule. I really don't remember if I checked on it at the time or not, but it has never come up again that I recall until now, and only in discussion this time.