Now I am confused. Are you quoting an unnamed elder who gave this info in an email to your sister? It is absolutely incorrect from the docs I've read. If the police were told, I don't see how a jury would find liability, let alone punitive damages.
We don't have a single law in the United States. Every state has its own body of laws. Each territory, colony (Puerto Rico, the District of Columbia has its own law. Most negligence law is state based. There is also an overlay of federal, United States, laws, although they are minimal in this field. Federal law would apply to military bases, federal property, etc. It becomes very confusing.
The Conti case is controversial. The JWs were under no legal duty at the time of the incident top report child abuse. CA is now a mandatory reporting state for child abuse that clergy find out about through nonconfidential settings. The statute still protects clergy/pentinent privilege, as in Roman Catholic confession. The Witnesses claim that Kendrick was entitled to the privilege which woud relieve the WT of any duty to the congregation. The judge ruled that a confession required only one clergy person and must be confidential to be sheltered under the privlege. There were multiple elders involved in this case and many players at Bethel. Kendrick could not rely upon confidentiality with so many actors.
One appealable issue is whether it is lawful to impose a legal duty that did not exist at the time of the incident. Another is the clergy/pentinent privilege. First Amendment concerns arise.Imposing a new legal duty is usually done by state legislatures today. It is a very interesting case.
I saw not a shred of evidence that the police were alerted. If they alerted the police, it makes it very difficult to claim privilege. Besides, I've read many posts here from JWs who left b/c of inaction by elders when child abuse was clearly pointed out to them. I look for details when determining credibility. These accounts seem authentic to me. Most of the time not only were the police not alerted but the elders had to call Bethel Legal Department as their duty and from a public phone. Use of private phones was discouraged. Elders threatened judicail committee action for anyone who reported it to the police. Why such secrecy? Elders are exposed to liability and are not receiving legal advice for their individual concerns. This is exactly the time of incident you want to document to the nth degree for legal protection.
The elder you quote may have a misunderstanding, based on his notions of fair play. The elders' manual and many accounts here are evidence that this policy is not followed. Perhaps a rare congregation follows his advice.
If I am incorrect, I hope that someone with more knowledge will correct me.
