Opinion
In this case we are called upon to determine whether the expulsion of a person from membership in the Boy Scouts on the basis of his homosexuality constitutes a violation of both the common law right of fair procedure and the Unruh Civil Rights Act (Civ. Code, § 51). We have determined that using the status of homosexuality as a basis of expulsion is substantively arbitrary and therefore violative of the common law right of fair procedure. Moreover, before homosexuality may lawfully be used as a basis to expel, a rational connection must be demonstrated between homosexual conduct and any significant danger of harm to the association resulting from the continued membership of the homosexual person. We have further determined that the Boy Scouts is a business establishment within the meaning of the Unruh Act and is therefore prohibited from all discrimination in the provision of its services. Accordingly, we have concluded the *718 trial court improperly sustained the general demurrer without leave to amend and the judgment of dismissal in favor of defendant should be reversed.
Facts and Proceedings Below
Plaintiff Timothy Curran filed an amended complaint and petition for writ of mandate (complaint), containing two causes of action against defendant Mount Diablo Council of the Boy Scouts of America. The gist of the first cause of action is that plaintiff’s expulsion from, and rejection as “Scouter” by, the Boy Scouts of America, were based not only on an unfair procedure but also on an improper reason, plaintiff’s sexual preference of homosexuality. The second cause of action is for violation of plaintiff’s rights under the Unruh Civil Rights Act.
From the allegations of the first cause of action of the complaint the following facts emerge. Defendant is part of the Boy Scouts of America, a congressionally-chartered corporation (36 U.S.C.A. §§ 21-29). Plaintiff was a member of defendant in good standing for over five years immediately prior to November 28, 1980, and had attained the rank of eagle scout. Prior to November 28, 1980, plaintiff had submitted his application to defendant to become a “Scouter” of the Boy Scouts of America. Such an application by an eagle scout is routinely and uniformly approved by defendant. On November 28, 1980, Quentin Alexander, scout executive of defendant and acting on its behalf, informed plaintiff that plaintiff was no longer a member of the Boy Scouts of America and could not have “Scouter” status because plaintiff was a homosexual and hence not a good moral example for younger scouts.
Prior to his expulsion and rejection plaintiff was not given notice or a fair opportunity to be heard. After his expulsion and rejection, plaintiff made written request to the western region of the Boy Scouts of America, of which defendant is a subordinate body, for an administrative review of defendant’s decision. Defendant advised plaintiff that such a review would not be productive unless in fact plaintiff was not a homosexual. No other administrative remedy is available and, as a consequence thereof, all administrative remedies were exhausted.
Plaintiff further alleges in the first cause of action that membership in the Boy Scouts of America is of considerable financial value to its members in admission to institutions of higher learning, in employment, and in advancement in the business world.
*719 In the second cause of action of his complaint, plaintiff incorporates all the allegations of the first cause of action. Plaintiff further alleges inter alia that the Boy Scouts of America is the owner of the copyright of the Boy Scouts’ emblem and uniform, which are franchised to retail outlets throughout the United States. It derives great financial revenues from such franchising. In addition, the Boy Scouts of America is engaged in the book publishing business and publishes and sells a variety of books throughout the United States. Furthermore, defendant maintains a retail shop in Walnut Creek, California, where it engages in extensive commercial activities.
In addition to mandamus seeking plaintiff’s reinstatement in defendant and attainment of “Scouter” status, the complaint seeks a permanent injunction barring defendant from interfering with plaintiff’s rights under the Unruh Civil Rights Act and for damages.
This appeal raises the following issues:
(1) Does the first cause of action state a valid claim for wrongful denial of the common law right of “fair procedure”?
(2) Does the second cause of action state facts showing a violation of the Unruh Civil Rights Act (Civ. Code, § 51) in that (a) the Boy Scouts is a “business establishment” within the meaning of the Unruh Act and (b) plaintiff’s expulsion or exclusion from defendant on the basis of his sexual preference of homosexuality, which deprives him of defendant’s services, constitute a violation of the Unruh Act?
Our task on this appeal was stated by our Supreme Court in
Glaire
v.
La Lanne-Paris Health Spa, Inc.
(1974)
I
The First Cause of Action States a Valid Claim for Wrongful Denial of the Common Law Right of Fair Procedure.
Plaintiff argues that defendant’s action in expelling him from membership in the Boy Scouts of America and in denying him “Scouter” status on the *720 basis of his sexual preference of homosexuality was both substantively irrational and procedurally unfair.
Under common law, relief was afforded to any individual expelled from a private association who could demonstrate (1) that the society’s rules or proceedings were contrary to “natural justice,” (2) that the society had not followed its own procedures, or (3) that the expulsion was maliciously motivated. (Dawkins v. Antrobus (1881) 17 Ch.D. 615; see Chafee, The Internal Affairs of Associations Not For Profit (1930) 43 Harv. L.Rev. 993, 1014-1020.)
This common law principle authorizing judicial review of expulsions from associations became part of California law before the turn of the century. (See
Otto
v.
Tailors’P. & B. Union
(1888)
Taken together, these decisions establish that the expulsion of a person from membership in a private unincorporated association is deemed “arbitrary” and in violation of the common law right of fair procedure when the expulsion is substantively unreasonable, internally irregular, or procedurally unfair.
(Ezekial
v.
Winkley, supra,
In applying this common law protection against arbitrary expulsion, the courts use a two-step analysis. First, a judicial evaluation of the procedure followed by the association is made to determine if the procedure is fair. For example, in
Hackethal
v.
California Medical Assn., supra,
Secondly, judicial inquiry is made to determine whether the expulsion rests upon a rule which is substantively capricious or contrary to public policy. For example, in
Bernstein
v.
Alameda etc. Medical Assn.
(1956)
Defendant contends that plaintiff does not come within the ambit of this common law principle because there are no allegations showing plaintiff was divested of any vested right in specific property, which this principle requires for its application. Defendant cites
Otto
v.
Tailors’ P. & B. Union, supra,
While a superficial reading of these cases might suggest that defendant’s restrictive interpretation has some support, this attempt to confine these cases to such a narrow base ignores recent development in this area of the law. In
Ezekial
v.
Winkley, supra,
In this case, plaintiff alleges two important benefits which are entitled to legal protection. First, he was a member in good standing of the Boy Scouts at the time of his expulsion. Secondly, he had attained the rank of eagle scout, which ensures routine promotion to the status of “Scouter.”
Defendant, however, contends that this is not an expulsion case, but rather a case involving an exclusion from membership in a private association.
*722
Defendant argues that plaintiff was a Boy Scout until October 28, 1979, when he became 18 years of age. Defendant urges this court to take judicial notice of article VII, section 3 of the rules and regulations of the Boy Scouts of America. (See
Young
v.
Boy Scouts of America
(1935)
“On demurrer, it is not the function of a trial court, or of this court, to speculate on the ability of a plaintiff to support, at trial, allegations well pleaded.”
(Meyer
v.
Graphic Arts International Union
(1979)
We have taken judicial notice of this section, which provides: “A Boy Scout is a boy who has completed the fifth grade and is at least
lOVz
years of age or older and in either case is not yet 18 who . . . becomes a registered member of a Boy Scout troop. . . .” A reasonable construction of this section is that a boy must join the Boy Scouts before reaching the age of 18.
2
Thus, there would be neither a contradiction nor inconsistency between the allegation that plaintiff was a member in good standing of the Boy Scouts, and the facts judicially noticed. We conclude, therefore, that this is an expulsion, rather than an exclusion, case under the allegations of the first cause of action. Hence, the determination of whether a cause of action is stated turns on the application of the
“broader
principle” applicable to “an important benefit or privilege [that] has already been conferred.”
(Ezekial
v.
Winkley, supra,
*723 We now turn to whether the first cause of action states a valid claim for wrongful denial of the common law right of fair procedure. Here, the complaint alleges that, without notice or an opportunity to respond, plaintiff was expelled from the Boy Scouts on the ground he was a homosexual and hence, not a good moral example for younger scouts.
Based on a reasonable construction of these allegations, we find that an expulsion from a private association under such circumstances is both procedurally unfair and substantively unreasonable.
First, the elements of adequate notice of charge and reasonable opportunity to respond are basic to common law fair procedure.
(Hackethal
v.
California Medical Assn., supra,
Secondly, an expulsion from an association on the basis of a person’s status of homosexuality is both capricious and offensive to public policy. The mere status of homosexuality without more does not connote immorality. In
Stoumen
v.
Reilly
(1951)
In addition, inhibiting association members’ public and civic rights is contrary to public policy. (See
Mitchell v. Internat. Assn. of Machinists
(1961)
The essence of this right was expressed in
Sweezy
v.
New Hampshire
(1957)
In the instant case the allegations can reasonably be construed as charging that defendant’s action to expel rests on plaintiff’s political decision to “come out of the closet” and acknowledge his sexual preference of homosexuality. As so construed, the expulsion would be distinctly contrary to public policy. (Cf.
Bernstein
v.
Alameda, etc. Medical Assn., supra,
On the other hand, if defendant’s action to expel is based on plaintiff’s homosexual conduct, then plaintiff’s right of freedom of expression is qualified with respect to his participation in the activities of defendant. In this context, the association’s natural right of self-preservation comes into play. (See
Davis
v.
Int. Alliance etc. Employees
(1943)
Justice Tobriner, writing for the majority in each case, specified that the factors which may be considered in making such a determination are “the likelihood that the conduct may have adversely affected students or fellow teachers, the degree of such adversity anticipated, the proximity or remoteness in time of the conduct, the type of teaching certificate held by the party involved, the extenuating or aggravating circumstances, if any, surrounding the conduct, the praiseworthiness or blameworthiness of the motives resulting in the conduct, the likelihood of the recurrence of the questioned conduct, and the extent to which disciplinary action may inflict an adverse impact or chilling effect upon the constitutional rights of the teacher involved or other teachers.”
(Morrison
v.
State Board of Education, supra,
Applying this Morrison standard to the instant case, we hold that, before homosexual conduct, whether private or public, criminal or noncriminal, may lawfully be used as a basis to expel plaintiff from membership in defendant, a connection must be demonstrated between his homosexual conduct and any significant danger of harm (id., at p. 235) to the association resulting from his continued membership.
For the foregoing reasons, we hold that plaintiff has stated a valid claim for wrongful denial of the common law right of fair procedure in his first cause of action.
II
Violation of the Unruh Civil Rights Act Is Stated
Plaintiff further contends that either his expulsion or exclusion from defendant on the basis of his sexual preference of homosexuality deprives him of defendant’s services and thus, violates the Unruh Civil Rights Act (Civ. Code, § 51).
The Unruh Act provides in part: “All persons within the jurisdiction of this State are free and equal, and no matter what their sex, race, color, religion, ancestry, or national origin are entitled to the full and equal ac *726 commodations, advantages, facilities, privileges, or services in all business establishments of every kind whatsoever.” (Civ. Code, § 51.) 5
A. The Historical Perspective of the Unruh Act
To put the present inquiry into its proper historical perspective, our analysis must begin with an exploration of the development of public accommodation laws in California.
Under California’s early common law, enterprises which were affected with a public interest had a duty to provide service to all without discrimination.
(In re Cox
(1970)
From 1897 until 1959, when Unruh was enacted, the language of the public accommodation statute was amended on several occasions, with the Legislature listing additional specific places of public accommodation but always including the general category of “all other places of public accommodation or amusement.” (See Stats. 1919, ch. 210, § 1, p. 309, and Stats. 1923, ch. 235, § 1, p. 485.) Despite the broad language forbidding discrimination by “all other places of public accommodation,” certain decisions of appellate courts made in the late 1950’s reveal a judicial effort to “improperly” curtail “the scope of the public accommodation provisions” by narrowly defining the kinds of businesses that afforded public accommodation. (See
In re Cox, supra,
Out of a concern for, and in response to, these decisions restricting the scope of the public accommodations provisions, the Legislature in 1959 enacted the Unruh Act, which provided in part: “ ‘All citizens ... are free and equal, and no matter what their race, color, religion, ancestry, or national origin are entitled to the full and equal accommodations, advantages, facilities, privileges, or services in all business establishments of every kind whatsoever." ”
7
(In re Cox, supra,
B. “Business Establishments” Include All Entities, Whether Carried on for Profit or Not, Which Are Open to and Serving the General Public
With this historical perspective in mind, we are called upon to determine whether the Boy Scouts, of which the defendant is a part, comes within the meaning of the statutory phrase “all business establishments of every kind whatsoever.”
As with all statutes the Unruh Act must be construed in the light of its legislative purpose and design.
(People
ex rel.
Younger
v.
Superior Court
(1976)
The first step in our analysis is to determine the intended meaning of the word “business” as used by the Legislature.
Our Supreme Court considered the meaning of the word “business” in
Marin Municipal Water Dist.
v.
Chenu
(1922)
Defendant argues that, by expressly limiting the Unruh Act to “business, establishments,” the intent of the Legislature was to confine its application to commercial enterprises and activities under the
narrow
meaning of business. Hence, nonprofit and charitable organizations like the Boy Scouts are outside the scope of the statute. Moreover, the defendant argues that the definition of “business” given in
Burks
v.
Poppy Construction Co.
(1962)
Our examination of Burks reveals that the Supreme Court determined the Legislature intended the word “business” as used in the Unruh Act to reflect both a broad meaning to include noncommercial entities as well as a narrow meaning to include commercial entities.
First, the Supreme Court determined that the Unruh Act was adopted to include the prohibition against discrimination in places of public accommodation or amusement as provided by earlier common law and statutory public accommodations provisions as well as to extend the prohibition against discrimination to “ ‘all business establishments.’ ” (Id., at p. 471.)
Secondly, the Supreme Court implicitly presumed that the Legislature in enacting a statute such as the Unruh Act was familiar with both the relevant rules of statutory construction governing remedial legislation and prior judicial interpretation of particular words. Thus, when it couches its enactment of a remedial statute in such words without exception, the Legislature intends its broadest application.
(Id.,
at p. 468; see, e.g.,
Keeler
v.
Superior Court
(1970)
Thirdly, in determining the meaning of the word “business” as intended by the Legislature, the Supreme Court cited and relied on
Mansfield
v.
Hyde
(1952)
Fourthly, the Supreme Court determined that “[t]he word ‘establishment,’ as broadly defined, includes not only a fixed location, such as the ‘place where one is permanently fixed for residence or business,’ but also a permanent ‘commercial force or organization’ or ‘a permanent settled position (as in life or business).’ ” (Id., at pp. 468-469; italics added.) It goes without saying that the latter part refers to a noncommercial organization.
Finally, the Supreme Court determined that the use of the words “all” and “of every kind whatsoever” in referring to business establishments is indicative of an intent by the Legislature “that the term ‘business establishments’ was used in the broadest sense reasonably possible.” (Id., at p. 468.)
Although in
Burks
the court determined the word “business” included both commercial and noncommercial entities, its application in the broadest sense was unnecessary because the enterprise and activities involved there were both commercial. However, this was not the situation in
O’Connor
v.
Village Green Owners Assn., supra,
In O’Connor, the Supreme Court was confronted with whether a nonprofit owners association, charged with the responsibility of enforcing an age restriction on residency in a condominium complex, was a business establishment within the meaning of the Unruh Act. After quoting with approval the discussion in Burks as to the scope of the phrase “all business establishments of every kind whatsoever” the court compared the original version 8 of the bill presented to the Legislature with the final version enacted as the *730 Unruh Act. The Supreme Court found the broadened scope of “business establishments” in the final version of the bill “indicative of an intent by the Legislature to include therein all formerly specified private and public groups or organizations that may reasonably be found to constitute ‘business establishments’ of every type whatsoever.” (33 Cal.3d at pp. 795-796.)
Moreover, the Supreme Court further concluded that “[n]othing in the language or history of [the] enactment [of the Unruh Act] calls for excluding an organization simply because it is nonprofit.” (Id., at p. 796.) Although the Supreme Court found the owners association had “businesslike attributes” to come within the scope of “business establishment,” we construe this to mean that the association fits both the commercial and non-commercial aspects of the meaning of “business establishment.” Here, the same situation exists. There are allegations showing that defendant has certain “businesslike attributes.”
Despite this, defendant argues that any construction of the Unruh Act to bring the Boy Scouts within the meaning of “business establishment” would constitute an infringement of its rights of privacy and free association as a membership organization. The “governing principle,” defendant asserts, is found in the following dissenting opinion of Mr. Justice Douglas in
Moose Lodge No. 107
v.
Irvis
(1972)
Taking this principle literally as “governing” would afford protection to the most flagrant form of discrimination under the canopy of the right of free association. The answer is, of course, that those with a common interest may associate exclusively with whom they please only if it is the kind of association which was intended to be embraced within the protection afforded by the rights of privacy and free association. (See Note, Association, Privacy and the Private Club: The Constitutional Conflict (1970) 5 Harv.C.R.-C.L. L.Rev. 460, 466-467.) “The character and extent of any interference with the freedom of association must be weighed against the countervailing interests. ” (Note, Sex Discrimination in Private Clubs (1977) 29 Hastings L.J. 417, 422.)
*731
Accordingly, these constitutional provisions only restrain the Legislature from enacting antidiscrimination laws where
strictly
private clubs or institutions are affected. (See, e.g.,
Burks
v.
Poppy Construction Co., supra,
Our function here is succinctly stated in
Kramer
v.
Municipal Court
(1975)
To avoid the constitutional infirmity argued by defendant, criteria have been established to determine, in the context of the Unruh Act and similar statutes, whether a group is private or public. (See
Nesmith
v.
Young Men’s Christian Assn. of Raleigh, N.C., supra,
In determining whether an establishment is in fact a private club, there is no single test.
(Nesmith
v.
Young Men’s Christian Assn, of Raleigh, N.C., supra,
Since the essence of a private club or organization is exclusivity in the choice of one’s associates, we find this approach ensures that private organizations remain protected. However, those entities which are not in fact private must comply with the mandate of the Unruh Act.
*732
Moreover, we find that to allow an organization to offer its facilities and membership to the general public, but exclude a class of persons on a basis prohibited by law would be contrary to the public policy expressed in the Unruh Act. Although our research discloses no California cases directly on point, cases decided under the federal and sister states’ public accommodations statutes are persuasive here. For example, in
Tillman
v.
Wheaton-Haven Recreation Assn.
(1973)
We therefore conclude that the concept of organizational membership per se cannot place an entity outside the scope of the Unruh Act unless it is shown that the organization is truly private.
The Legislature’s intent to include organizations such as the Boy Scouts within the scope of the Unruh Act is also found in the enactment of the Fair Employment Practices Act and the Fair Housing Law. Both these civil rights acts were passed in 1959 during the same session as the Unruh Act. Unlike the Unruh Act, however, these two acts specifically excluded nonprofit entities. For example, the Fair Employment Practices Act 9 contained an express exclusion for social clubs, and fraternal, charitable, educational or religious associations or corporations not organized for profit. The Fair Housing Law 10 also specifically excluded housing operated by nonprofit religious, fraternal, or charitable associations or corporations.
We therefore conclude that the term “business establishments,” consistent with the Legislature’s intent to use the term in the broadest sense rea *733 sonably possible, includes all commercial and noncommercial entities open to and serving the general public. Accordingly, we hold the Boy Scouts, of which the defendant is a part, is a business establishment within the meaning of the Unruh Act.
C. Exclusion of Plaintiff on the Basis of His Sexual Preference of Homosexuality Is Not Permissible Under the Unruh Act.
The primary purpose of the Unruh Act is to compel recognition of the equality of all persons in the right to the particular service offered by an organization or entity covered by the act. (See
Marina Point, Ltd.
v.
Wolfson
(1982)
After reviewing the common law origin, the legislative history and past judicial interpretations of the act and its statutory predecessors, our Supreme Court in
In re Cox, supra,
Moreover, the statute’s focus on the individual precludes the exclusion of persons based on a generalization about the class to which they belong. For example, the statutory protections of the act bar exclusionary policies directed against (1) homosexuals
(Stoumen
v.
Reilly, supra,
Nor can an exclusion be justified only on the ground that the presence of a class of persons does not accord with the nature of the organization or its facilities. (See, e.g.,
Marina Point, Ltd.
v.
Wolfson, supra,
Here, plaintiff asserts that he was expelled from membership in the Boy Scouts, and excluded from “Scouter” status therein, on the claim that *734 he is not a good moral example for younger scouts due to his sexual preference of homosexuality.
In
Stoumen
v.
Reilly, supra,
Defendant argues, however, that the enforcement of the Unruh Act against it would violate the supremacy clause of the United States Constitution, article VI, clause 2. 11 Defendant contends that the Boy Scouts of America is authorized under the charter granted it by Congress in 1916 (see 36 U.S.C.A. § 21 et seq.) to employ membership requirements based on sex, religious beliefs, political beliefs and other criteria the organization has historically applied.
This argument rests on the premise that Congress, in granting the federal charter, intended to authorize the Boy Scouts to practice discrimination against homosexuals.
Contrary to the position of defendant, the language of the federal charter demonstrates the opposite intent: “The name of the corporation created by this chapter shall be ‘Boy Scouts of America,’ and by that name it shall have . . . power ... to make and adopt by-laws, rules and regulations
not inconsistent with the laws of the United States, or any State thereof.
. .” (36 U.S.C.A. § 22; italics added.) Thus, there is no supremacy clause problem. Moreover, the Unruh Act is not in conflict with the Boy Scouts’ charter. (See, e.g.,
Perez
v.
Campbell
(1971)
We therefore hold that the plaintiff has stated a cause of action for violation of the Unruh Act.
*735 Accordingly, the judgment in favor of defendant is reversed and the trial court is directed to overrule the demurrer of defendant.
Schauer, P. J., and Johnson, J., concurred.
A petition for a rehearing was denied November 2, 1983, and respondent’s petition for a hearing by the Supreme Court was denied January 6, 1984. Mosk, J., did not participate therein.
Notes
James
v.
Marinship Corp.
(1944)
This section has a patent ambiguity and thus, within the policy of liberality governing our review, we give this section a broad construction. At trial, extraneous evidence may be necessary.
Section 58 provided: “Every licensee or agent or employee of any licensee who keeps or permits to be used or suffers to be used, in conjunction with a licensed premises, any disorderly house or place in which people abide or to which people resort, to the disturbance of the neighborhood, or in which people abide or to which people resort for purposes which are injurious to the public morals, health, convenience or safety shall be guilty of a misdemeanor. ”
Twenty-one states, including California, have decriminalized private, consensual adult homosexual sexual acts. (See Rivera, Our Straight-Laced Judges: The Legal Position of Homosexual Persons in the United States (1979) 30 Hastings L.J., 799, 950-951; Cal. Pen. Code, §§ 286, 288a.)
Section 51 of the Civil Code provides that it shall be known as the “Unruh Civil Rights Act.”
The 1897 act provided: “That all citizens within the jurisdiction of this State shall be entitled to the full and equal accommodations, advantages, facilities, privileges of inns, restaurants, hotels, eating-houses, barber-shops, bath-houses, theaters, skating-rinks, and all other places of public accommodation or amusements, subject only to the conditions and limitations established by law and applicable alike to all citizens.” (Stats. 1897, ch. 108, § 1, p. 137; italics added.)
The Legislature in 1961 substituted “all persons” for “all citizens,” and in 1974, added “sex.” These amendments broaden the applicability of section 51.
The original version of the bill read in part: “All citizens within the jurisdiction of this State, no matter what their race, color, religion, ancestry, or national origin, are entitled to the fall and equal admittance, accommodations, advantages, facilities, membership, and privileges in, or accorded by, all public or private groups, organizations, associations, business establishments, schools, and public facilities; to purchase real property; and to obtain the services of any professional person, group or associations.”
(O’Connor
v.
Village Green Owners Association, supra,
Formerly Labor Code, section 1413, subdivision (d), enacted by Statutes 1959, chapter 121, section 1, page 2000; now Government Code, section 12926, subdivision (c).
Formerly Health and Safety Code, section 35710, subdivision (2), enacted by Statutes 1959, chapter 1681, section 1, page 4074; now Government Code, section 12927.
United States Constitution, article VI, clause 2 provides in part: “This Constitution, and the Laws of the United States which shall be made in Pursuance thereof . . . shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby, any Thing in the Constitution or Laws of any State to the Contrary notwithstanding.”
