National Catholic Reporter has run a piece on the Church ownership issue: Who owns the real estate? It's a real legal mess, but my earlier observations (link) appear to be borne out: The Church has simply taken inconsistent positions on the matter.
If the Diocese doesn't want to be deemed the owner, perhaps the Diocese shouldn't take title in the name of the Bishop, on behalf of the Diocese. In the vast majority of transactions, the Deed's title will be dispositive on the issue of ownership.
Maybe a diocese ought to consider this: Get off the Deed, now! Before the law suit is threatened or started.
But then again, that might cause the Diocese to lose control over that asset, and it doesn't want that. Based on my experience with "Diocese" property, it wants to control the property (including its use and disposition), but it doesn't want to own it. Unfortunately, use and disposition are major components of ownership. You can't have it both ways.
Thanks to Open Book for the NC Reporter link.