The California Supreme Court has let stand a ruling that allows parishes to take their property with them if they leave their denomination, notwithstanding any denominational trust clause or canon. The court’s decision may impair the Episcopal Church’s ability to use the Dennis Canon in church property disputes in California.

On Dec. 1, the Supreme Court declined to hear the appeal and let stand a Superior Court decision that gave title to a Fresno church property to a breakaway congregation. In 2000, St. Luke’s declared its independence from the United Methodist Church, citing concerns over the liberal drift of the denomination and in protest over the failure of the local conference to discipline pastors who performed blessings of same-sex unions. The Methodist Church sued the breakaway group which had kept control over the property, arguing that under its canons local congregations held the property in trust for the denomination.

After a Fresno County Trial Court ruled in favor of the denomination, the Fifth Circuit Court of Appeal ruled in August that the breakaway group could, under California law, keep its property.

Robert Shannon, attorney for the Methodist Church, stated the decision “not only impacts the United Methodist Church but other mainline denominations with similar methods of holding property. These other denominations could potentially see their own trust clauses challenged and invalidated using the St. Luke’s case.”

Under the Episcopal Church’s Title I.7.4 (the Dennis Canon) all “personal and real property held by or for the benefit of any parish, mission or congregation is held in trust for this Church and the diocese thereof …”. Under California law, the Dennis Canon’s power is subordinate to state law, allowing in certain circumstances congregations to depart from the Episcopal Church and to take their property with them.