In the first decision of its new term, the Supreme Court by a narrow majority overruled two lower court decisions to find in favor of the navy. The decision (available here) was authored by Chief Justice Roberts and was joined by Justices Scalia, Alito, Thomas, and Kennedy. It is a disappointing decision, but not unexpected given the tone of the questioning during oral argument. How Appealing has a post on the decision here, which contains a link to this AP report. The NY Times reports on the decision in an article here.