The Kleins stated that they would contest the Bureau's decision. However, after appealing for 6 months, Aaron Klein paid the final order with interest, though still stating he would continue to appeal the order on free speech grounds. In December 2017, an appeals court upheld the amount of the penalty, as well as making a determination that the original decision did not violate the Kleins' freedom of speech, as it simply "requires their compliance with a neutral law." The opinion issued by the court contained several interpretations on matters of contention. First, the court rejected the Kleins' argument that there was a distinction between sexual orientation and "gay conduct" (i.e. a same-sex wedding) and found "we hold that their refusal to serve the complainants is the type of discrimination 'on account of sexual orientation' that falls within the plain meaning" of the state law. Second, the court found the Kleins' failed to demonstrate their wedding cakes are protected speech, art, or expression under the First Amendment. Third, it rejected their argument that the state's statute violates the Free Exercise Clause. Fourth, the court rejected the Kleins' argument that the commissioner issuing the original order was biased and that the fine was excessive. The final part of the opinion concluded that there was insufficient evidence the Klein's violated a specific state law (ORS 659A.409) regarding threatening or advertising they would unlawfully discriminate against persons in the future, though there was no fine associated with this specific charge.
