Another important religious-institutions case

Professor Friedman over at the (excellent) Religion Clause blog reports on a lawsuit, filed recently in California, raising "the issue of whether a religious school can avoid the anti-discrimination provisions of California's Unruh Civil Rights Act by invoking the school's right to freedom of religion and association."  Apparently, Cal Lutheran High "expelled two female students who were suspected of having a lesbian relationship with each other.  In a letter to the students' parents, the school said that the 'bond of intimacy' that exists between the two girls is 'unchristian'. The students' attorney . . . argues that the school is a 'business establishment' under the anti-discrimination law."