That's generally the law in every state (unless it's a public place, with no presumption of privacy, and you're voluntarily there). He obviously has a very strong civil case. And his lawyers likely have already begun the process.
Maybe I'm missing something, but I really don't think people should be punished for their personal opinions - regardless of how offensive - unless they're actually hurting someone/something financially/physically. It's like with that Duck Dynasty fiasco. I don't agree with his beliefs, but he didn't physically harm anyone cause any problem beyond having a differing opinion, so why should he be chastised for that? Not everyone agrees with the majority, and while homophobia and racism aren't widely acceptable, they do exist, and I won't say anything negative against someone who keeps those negative opinions from harming others and lets them thrive only in their personal lives.
Just as Sterling has the right to state his racist beliefs, the NBA has the right to disassociate itself from people with those beliefs.