It won't be appealed because Bush didn't lose. If anyone appeals, it will be the plaintiffs.
Here's the deal. The Executive Order at issue concerns designating or listing various terrorists and terrorist groups for purposes of sanctions or asset seizures and whatnot. When Bush signed the E.O., he kick-started the list himself via an annex to the E.O. That annex listed 27 persons or groups: Al Qaida, Osama, al-Zawahiri, Abu Sayyaf, etc.--all totally obvious without-a-doubt terrorists.
Since the E.O. was signed, about 350 more names have been added to the list based on determinations by the Sec. of State, the Sec. of the Treasury, and the A.G. Those 350 designations were all authorized by the E.O. and based on particular criteria mentioned in the E.O. Bush himself hasn't put any names on the list since his original 27 in the E.O. annex.
What the judge is saying is that Bush selected those first 27 names without any findings or explanation of the criteria used to make the selection and without giving the designees any opportunity to challenge being listed. That *manner* in which the original 27 were listed is what the judge says is unconstitutional, the reasoning being that some innocent group or person could theoretically be put on the list and the President wouldn't even have to justify the designation. Essentially the judge is telling Bush he can't do something that he hasn't even been doing, at least not in over 5 years. All Bush has to do now is relist the original 27 (using the procedures that have been used for every other designation since the E.O. was signed).
The plaintiffs lost. They wanted the judge to either rewrite the E.O. or throw it out completely. That didn't happen, not by a longshot. The judge rejected the plaintiffs' *main* arguments completely. Bottom line, the groups which the plaintiffs want to aid and abet--the Kurdistan Workers' Party and the Liberation Tigers (or whatever it's called)--were legally designated as terror groups and remain so designated today. Meaning, the plaintiffs *still* can't legally consort with them. They lost. Really. This news article is either deliberate bullspin or just plain ignorance.
Anyway, you can read the decision here: Humanitarian Law Project v US Dept of Treasury.
And here's the E.O. at issue: Executive Order 13224.
Hey, thanks for clearing that up. I stand corrected. :)