Church's investigator grilled on independence, by Cameron Houston, Jane Lee, Sydney Morning Herald (August 20, 2014)

The Catholic Church's independent commissioner was unable to explain how he received confidential information from a victim of serial paedophile priest Kevin O'Donnell or why it was passed on to the church's lawyers in an apparent breach of confidentiality.

The Royal Commission also raised concerns about the independence of Peter O'Callaghan, QC, who has investigated allegations of clerical abuse for the past 18 years under the church's controversial Melbourne Response.

The church's law firm Corrs Chambers Westgarth was also questioned over its handling of files and sensitive information from three separate arms of the Melbourne Response, which claim to be independent of each other.

Corrs Chambers Westgarth partner Richard Leder denied any confidentiality had been compromised in his role as lawyer for the Catholic Archdiocese of Melbourne and the Melbourne Response, which he helped establish in 1996.

But Royal Commission chairman Justice Peter McLellan appeared unconvinced.

"You must have Chinese walls inside your head," Justice McLellan said.

Mr Leder was heckled by several victims attending the Royal Commission on Wednesday when asked why complainants had been forced to waive their common law rights in order to receive ex gratia payments of up to $50,000 under the Melbourne Response.

Mr Leder insisted the payments gave victims "finality", despite acknowledging they could have received significantly higher compensation if they had successfully sued the church.

Again, commission chairman Justice McLellan seemed unpersuaded.

"Why is it a benefit for someone to forgo their common law rights in return for a modest sum of money? Can you understand that this is a scheme that protects the church unfairly?" Justice McLellan said.

Mr O'Callaghan again faced accusations from counsel assisting the commission that he failed to encourage victims of their "continuing and unfettered" right to report clerical abuse to police.

In correspondence to one victim, known as AFA, Mr O'Callaghan warned he would stop investigating complaints against convicted paedophile priest Father Michael Glennon if the complainant went to police. Glennon abused at least 21 boys over 32 years as a parish priest.

"There's a real prospect for such a notorious fellow, that the court would find that he has done his time", Mr O'Callaghan said to the victim.

Mr O'Callaghan denied the claim and said there were "tonnes of files" that demonstrated he had urged complainants to report to the police.

"I want to reject any suggestion that I discouraged people from going to the police. I certainly have a desire that child abusers be brought to justice," he told the commission.