Diane Cervelli and Taeko Bufford from Long Beach, California wanted to rent a room at a bed & breakfast while visiting friends in Honolulu. The owner, Phyllis Young, had refused their reservation because she was uncomfortable renting a room to lesbians.
The couple lodged a complaint. Hawaii prohibits discrimination based on sexual orientation.
A few years ago the Hawaii Civil Rights Commission ruled in favor of the women's couple.
The appeals court's ruling also supports this first decision.
But Young could ask the state's supreme court to take the case. If the court refuses, the case could go to the US Supreme Court because of her First Amendment claim.
Photo credit: AP Photo/Eric Risberg