So, the parents were informed of this and they are still looking to sue because it wasn’t reported?
I’m just not getting this.
I suppose a cynical point of view is that they've fallen under the influence of the Plaintiff's Bar, and are looking to cash in. The same cynic might also believe that the church is hiding behind an ancient principle to avoid paying-up.
A charitable perspective might be that the girl and her parents have been harmed, and have a need for some kind of restitution. The same charitable perspective might allow that even if that's true, the church has a sacred obligation to protect its sacraments.
My point was, I don't think there is [yet] a serious assault on the First Amendment in this case, and that even if there is, it might be necessary for the priest to accept secular sanctions to uphold his religious duties and protect his soul.