be penalized.

That was the judgment from the U.S. Supreme Court today in one of the highest-profile

cases of this term.

The 7-2 decision was a significant, but narrowly tailored victory for advocates of religious

freedom.

The court ruled in favor of Colorado baker Jack Phillips, who refused to design a wedding

cake for a same-sex couple.

Advocates on both sides reacted to the news this morning:

MICHAEL FARRIS, President, Alliance Defending Freedom: Justice Kennedy's opinion can be

summed up as tolerance is a two-way street.

Religious freedom is to be respected, just as he's respect gay rights decisions in many

other contexts.

WOMAN: We are saddened, but we're not shocked.

And, really, the case is a loss, but it's a narrow loss.

It's a limited loss.

AMNA NAWAZ: Six years ago, when Charlie Craig and David Mullins were planning their wedding,

they visited Phillips' cake shop.

DAVID MULLINS, Plaintiff: As soon as we sat down with the owner, he asked who the cake

was for and we told him it was for us.

JACK PHILLIPS, Owner, Masterpiece Cakeshop: So, I'm thinking, OK, how can I politely tell

these guys that's an event that I can't participate in?

I said, I will make you a birthday cake, cookies, brownies.

I will sell you anything in the shop.

It's just an event that I can't create a cake for.

CHARLIE CRAIG, Plaintiff: When we left the bakery, we cried together.

You know, it was really emotional.

It was really sad.

AMNA NAWAZ: Last year, Phillips told the "NewsHour" that designing the wedding cake would have

violated his religious belief that marriage is between a man and a woman.

JACK PHILLIPS: All I'm trying to do is use my art, use my craft to create cakes to help

people celebrate special occasions in their life.

I never turn anybody away, just events that I turn away.

AMNA NAWAZ: But the couple claimed the baker discriminated against them based on their

sexual orientation.

DAVID MULLINS: He turned us away because of who we are and because of who we love.

AMNA NAWAZ: Mullins and Craig brought their complaint to the Colorado Civil Rights Commission,

who sided with the couple.

But today, justice Anthony Kennedy disagreed.

He ruled the commission didn't act as a neutral party, that it had been hostile to the cake

maker's religious beliefs.

The decision didn't resolve the issue of whether a business may ever invoke religion to refuse

service to gays and lesbians.

We will talk about the significance of the decision after the news summary.