Because it is the D & D. I still think this has something to do with CA law regarding what is a "business". They might be appealing to a Constitution protection on religion but how CA law is written it comes out as a definition of a business. Anyone here practice labor law in CA?
Private Christian Schools must spell out entrance requirements and eligibility requirements. Some Christian Schools go so far to spell out demonination membership as a requirement. Some spell out Christian faith as a requirement thus excluding other religions and atheists. Others have very strict student and faculty policies. Private schools are formed for this very purpose. Pretty much all private schools spell out specific limiting standards for enrollment (for example gender exclusion) Many Muslim high schools such as Al Hadi in Houston have strict student policy. I don't know anything about the issue in the OP. But it is common for private schools to be very restrictive in enrollment and policy.
Are they any good at basketball? I know of a Christian school in Dallas that could use some student athletes. Probably wouldn't be too discriminating if they can play well.
If the court rules that they are not a for-profit business, then that's what the court ruled, and I have no problem with that. I believe gays and lesbians are a protected class as far as the law is concerned, so if the school were a business then the ruling should be automatic (whether or not we agree with it on moral grounds). That said, personally I don't understand why the school should be forced under any circumstances to admit gay students. They are a Christian school and they do not believe in or support that lifestyle. They do not hold a monopoly on education in that area. If the students want to be free to practice homosexuality, then they can go to a secular or public institution where they are free to do whatever they want without stepping on other people's toes. If for some reason the school held a monopoly on secondary education in the area, then perhaps. But this is why we have public schools -- the same people who fought to keep religion out of public schools should be defending a private school's right to conform to its own religious beliefs. Or is it anybody else's freedom but the Christians'?