Six of Nativity's seven vestry members quit. Mattingly and secretary Louis N. Browning have also resigned as members of the congregation.

Sauls had warned in a Nov. 16 letter to parishioners that the vestry was taking "steps to make it possible for the church building to be removed from the Episcopal Church and from those of you who wish to remain Episcopalians."

Mattingly and other former vestry members deny the allegation.

Under the terms of a 1989 legal trust, the building currently belongs to the Maysville parish, but would become the property of the Lexington diocese if Nativity ever ceases "to affiliate with the Diocese of Lexington or with the Episcopal Church."

In January members of the vestry signed a document terminating the trust. In a "notice of termination" filed with the Mason County Clerk, vestry members said the termination was needed "to safeguard the property of the Parish." They also expressed concern about the Episcopal Church's direction and about the denomination's "future teachings and doctrines."

A majority of the board later voted to transfer the church building's title to a new non-profit corporation, 31 East Third Street Inc. (the corporation takes its name from the church's street address.)

Most Nativity members were not told about the title transfer. When the new deed was filed, a note was attached stating: "This is a conveyance from a church corporation to its real estate holding corporation. Please do not publish as it just causes confusion in the public."

In his letter to parishioners, Sauls said the vestry's legal moves "constitute a breach of their fiduciary duties to the parish and to the diocese. I wish to assure you that steps will be taken to correct the title to the church property and return it to its rightful beneficiaries (the people of Nativity)."

In a letter to Sauls days before they resigned, the vestry said it "has never discussed or considered any plans to leave the Diocese."

The goal, former vestry members say, was to shield the church and its assets from Sauls.

Former vestry members say Sauls and his deputies had threatened to revoke Nativity's parish status, a move that would allow him to fire Nativity's democratically elected governing board and stack it with his allies.

In an interview, Sauls said such a move, while possible, would only be a last resort and, he added, would not allow him to take the congregation's assets.

The Lexington bishop has removed only one vestry, at St. John's Episcopal Church in Versailles. The vestry at Church of the Apostles in Lexington voted to leave the Episcopal Church.

Relations between Sauls and some conservative members of his diocese have been tense, especially since the church's general convention voted to approve the ordination of openly gay priest Gene Robinson as bishop of New Hampshire. Sauls supported Robinson. Many in the Maysville, Lexington and Versailles congregations disagreed.

Sauls expressed regret that the Nativity vestry members had stepped down.

"It wasn't necessary. It causes pain and I'm sad about that," he said.

Mattingly, the former senior warden, says Sauls was difficult to work with, adding, "I don't want to have anything to do with him."

The resignations are a setback for Nativity, where average attendance is 15 to 20 people.

Among those who remain, Mary Frances Marshall, a Nativity member for 27 years, says the split is painful. "We have worked with them, grieved with them, celebrated with them and we're sorry to see that they're gone. And we certainly welcome them with open arms if they wish to come back," she said.

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