In the 1975 case Serbian Eastern Orthodox Diocese for the United States of America and Canada et al. v. Milivojevich et al., the U.S Supreme Court ruled in favor of a church's autonomy to manage its internal affairs without interference from civil courts, even when disputes arise within religious organizations. The dispute began when Dionisije Milivojevich was removed as bishop by his church’s hierarchy due to alleged administrative mismanagement and disobedience towards ecclesiastical authority. He then sued in Illinois state court, arguing that his removal violated both state law and the constitution of his own diocese. However, citing First Amendment principles separating church and state, Justice Brennan delivered an opinion stating that it is not within judicial purview to challenge such decisions made by hierarchical religious bodies on matters involving doctrine or governance.

In the dissenting opinion for Serbian Eastern Orthodox Diocese v. Milivojevich, Justice Rehnquist argued that the majority's decision to grant absolute deference to hierarchical church decisions in matters of property and leadership disputes was a departure from previous precedent. He contended that this approach could potentially infringe upon civil courts' ability to resolve such disputes based on neutral principles of law without delving into religious doctrine or ecclesiastical governance. Furthermore, he suggested that by granting complete autonomy to church authorities in these matters, it might lead to potential abuses of power within religious organizations with no legal recourse available for those affected. Thus, while acknowledging the importance of First Amendment protections for religious freedom and non-interference in doctrinal issues by secular courts, he advocated for a more balanced approach where civil courts can still play a role when necessary.