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"I already lost 40% of my business and more than half of my employees during the first case," Mr. Phillips said. "I still haven't regained that income, nor been able to resume creating custom cake art for weddings. During this current coronavirus, I've been hit just as badly as many other small business owners."

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The Alliance Defending Freedom, which represented Mr. Phillips, said that religious freedoms "don't disappear when a university, charity, or international nongovernmental organization enters into a contract with the federal government."

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