A panel of the 9th U.S. Circuit of Appeals ruled 2-1 in favor of an unidentified non-Hawaiian high school student who was turned down for admission in 2003. The decision reversed a ruling by U.S. District Judge Alan Kay that the Kamehameha Schools could continue the Hawaiians-only admissions policy because of its unique historical circumstances.

"We ... find that the schools' admission policy, which operates in practice as an absolute bar for those on the non-preference race, constitutes unlawful discrimination," wrote 9th U.S. Circuit Court of Appeals Judge Jay Bybee.

Eric Grant, the Sacramento, Calif.-based attorney who represented the boy, said his client was "overjoyed by the decision" and expects to begin 12th-grade classes in two or three weeks.

Grant said the panel made a "common sense" decision in barring a "racially exclusive" policy.

"I think it is a terrific decision," added John Goemans, another attorney for the boy. "It is a very big event for Hawaiian history."

The Kamehameha Schools had no immediate response to the ruling but has scheduled a news conference later today. Its attorney, former Stanford Law School Dean Kathleen Sullivan, could not be reached for comment.

"It's not a great day for the Hawaiian community and the greater community as a whole," said Jan Dill, vice president of Na Pua a Ke Alii Pauahi, a 400-member support group that includes Kamehameha Schools parents, students and alumni.

"It's a decision that is not pono and it negates the intentions of Princess Pauahi."

Grant said he expects the Kamehameha Schools to appeal to the U.S. Supreme Court but believes that the high court may not hear the case.

The schools can also request a review by the full 9th Circuit.

The Kamehameha Schools were established under the 1884 will of Princess Bernice Pauahi Bishop to educate children of Hawaiian ancestry. The schools had argued that the policy aimed to remedy socio-economic ills suffered by Hawaiians since the overthrow of the Hawaiian monarchy.

About 5,100 Hawaiian and part-Hawaiian students from kindergarten through 12th grade attend the three campuses, which are partly funded by a trust now worth $6.2 billion.

The ruling comes after the Kamehameha Schools and Grant settled a 2003 lawsuit by non-Hawaiian student Brayden Mohica-Cummings, who was allowed to attend the Kamehameha Schools through the 12th grade.

In 2002, the school was forced to admit a non-Hawaiian student to its Maui campus after school administrators exhausted the list of applicants of Hawaiian ancestry that met the admission requirements.

Grant said he couldn't say if the decision would open the flood gates to the admissions of non-Hawaiian students but said "the admission process will have to change fundamentally."

"Kamehameha Schools is the last example of this sort of brazen racial exclusions," said Grant. " You had them in the south in the '60s and '70s but the civil rights statutes ended those."