The Colorado Civil Rights Commission on Tuesday dropped its latest case against Christian cakeshop owner Jack Phillips, handing him a second victory against state officials over his refusal to create cakes for certain LGBT events. Mr. Phillips, owner of Masterpiece Cakeshop in Lakewood, Colorado, agreed in exchange to drop his lawsuit against the state, which he filed last year after the commission took action against him for declining to make a blue-and-pink cake to celebrate a transgender transition. Kristen Waggoner, who represents Mr. Phillips as Alliance Defending Freedom senior vice president, called the outcome “great news for everyone.” “We’re pleased...