Bannatyne v Overtoun 

[1904] AC 515 (also called General Assembly of

the Free Church of Scotland v Lord Overtoun: Macalister v Young 1904
7 F (HL) 1 and known as the Free Church case), was a protracted legal
dispute between the United Free Church of Scotland (which was a union in
1900 of the majority Free Church of Scotland with the United Presbyterian
Church of Scotland) and the minority of the Free Church who had remained
outside of the union (see Free Church of Scotland (post 1900)).

Facts

The minority of the Free Church, which had refused to join the union,
quickly tested its legality. They issued a summons claiming that, in altering
the principles of the Free Church, the majority had forfeited the right to its
assets, which should belong to the remaining minority, who were the true
‘Free Church’. However, the case was lost in the Court of
Session where Alexander Low, Lord Low (upheld by the second division)
ruled that the Assembly of the original Free Church had a right, within
limits, to change its position.

The Free Church was represented by their former Moderator, Very Rev Colin
Bannatyne. Their position was opposed by Lord Overtoun, hence Bannatyne
v Overtoun.

Judgment

An appeal to House of Lords, (not delivered until August 1, 1904 due to a

judicial death), reversed the Court of Session's decision (by a majority of 5-2)
and found the minority was entitled to the assets of the Free Church. It
was held that, by adopting new standards of doctrine (and particularly
by abandoning its commitment to ‘the establishment principle’, which
was held to be fundamental to the Free Church), the majority had
violated the conditions on which the property of the Free Church was
held.