In the case of Maryland and Virginia Eldership of the Churches of God et al. v. Church of God at Sharpsburg, Inc., et al., 1969, the U.S Supreme Court ruled in favor of a local church's autonomy over its property against claims by a national religious organization. The dispute arose when members from both factions claimed ownership rights to church property after doctrinal disagreements led to schism within their congregation. The court held that civil courts should not involve themselves in ecclesiastical controversies and must defer to decisions made by appropriate religious bodies regarding internal governance matters unless they violate established law or public policy. This ruling reinforced First Amendment protections for freedom of religion and emphasized non-interference by state entities in internal affairs concerning faith-based organizations.

In the dissenting opinion for Maryland and Virginia Eldership of the Churches of God v. Church of God at Sharpsburg, Inc., Justice William O. Douglas argued that courts should not be involved in religious disputes or determining what constitutes a "church" within a specific faith tradition. He believed this was an inappropriate entanglement between church and state, violating the First Amendment's Establishment Clause which prohibits government involvement in religious affairs. Instead, he suggested such disputes should be resolved internally by members of the respective religious communities themselves without judicial interference. This approach would respect both freedom of religion and separation between church and state as enshrined in U.S Constitution.