Yes, expect more of these types of stories as time goes on. Australia is considering passing legislation to force priests to report crimes against children heard in confession; expect other countries to follow suit in future years. I wouldn’t be surprised if this trend expands to other crimes as well.
It would be a mistake for Church leaders to do anything but resist to the fullest such efforts and avoid any attempt at compromise or negotiation with officials who would consider such laws. Any ground given is a complete and total defeat. At least if the Church stands its ground and such laws do end up passing anyway, there can be no doubt about the righteousness of its position.
This lawsuit doesn’t have to do with the seal directly anymore but in another U.S. state it might have taken a different turn.