More of a Franchise than a Church, really

From the Times:

The Vatican will today make its most detailed defence yet against claims that it is liable for US bishops who allowed priests to molest children, saying bishops are not its employees and that a document from 1962 did not require them to keep quiet.

The Vatican will make the arguments in a motion to dismiss a federal lawsuit on jurisdictional grounds filed in Louisville, Kentucky, but it could affect other efforts to sue the Holy See.

Jeffrey Lena, the Vatican's lawyer in the US, said the Vatican would assert that bishops are not its employees because they are not paid by Rome, don't act on Rome's behalf and are not controlled day-to-day by the pope — factors courts use to determine whether employers are liable for the actions of their employees.

I think this defence is... misguided. Or is this the wave of the future?