A Texas school-prayer case that fueled calls by Republican presidential hopeful Newt Gingrich to curtail the power of federal judges was settled Thursday, as our own Nathan Koppel reported in today's WSJ.

The case stems from a May lawsuit by a former student and one who was graduating from a San Antonio high school who demanded that federal judge block religious displays at the school, including a prayer at the graduation ceremony. U.S. District Judge Fred Biery ruled in their favor, finding that he prayers were likely to...