From a Diocese of San Diego press release:
On Wednesday, March 11, the California Supreme Court dismissed the petition for review that had been filed by the former members of St. John's Episcopal Church in Fallbrook. The Supreme Court remanded the case with instructions for the Fourth District Court of Appeal to republish the opinion it previously had issued in favor of the Episcopal Diocese of San Diego and the Episcopalians of St. John's Church. That opinion affirmed the right of the bishop to resolve intracongregational disputes over who is eligible to serve on a church board.
“I am overjoyed with this result which will finally allow the Episcopalians of St. John’s to return to their church,” said Bishop Mathes. “It is now time to bring to a close this unnecessary legal proceeding. The Episcopal Church will continue its ministry of following Jesus as an inclusive, servant church. All are welcome at St. John’s; there is room enough in God’s house for everyone.”
Read it all. The case is known as New v. Kroeger. See the Supreme Court's action here (one line).
ENS has a thorough report on the history of the case.