Thanks for these posts Barbara, darkspilver and John Redwood. It's all very enlightening. I can see exactly why the WTS chose to settle. From the early information I had thought that their position was quite strong to create an argument that their liability was limited in this case but it seems they simply led themselves up a blind alley through continued obfuscation and misdirection.
Instead of simply explaining that the organisation has a legal, corporate side and an ecclesiastical side which has an overlap and building an understanding of how their legal and ecclesiastical responsibilities work, they seem to have once again tried to use the blurred lines to avoid any definition at all. The result - they end up looking stupid, obstructive and two faced.
To be frank, I think if you explain many of these things openly then it does have a certain logic to it. Someone may not agree with you but at least the pathway from A to B is clear (e.g. JWs position on homosexuality, the need to call Bethel legal when an allegation of abuse is made). Instead of being clear, concise and logical, with at least some confidence in their own position, the WT seems consistently unable to avoid complicating things by having no clarity and consistency.
It's almost like they don't believe their own bullshit.