A personal injury claimant has been ordered to pay Allianz $670,000 after falsely stating he had suffered a debilitating decline in mental health after a car crash.

Soo Yeon Yu made false declarations to the insurer and doctors about the “nature and extent of his alleged psychiatric injury” after the 2013 crash, the NSW Supreme Court has found.

The deceit led Allianz to pay him $750,000 following a settlement conference in 2015.

But when Mr Yu’s wife also made a claim alleging a psychological injury arising from her husband’s accident, Allianz began inquiries and ultimately sued Mr Yu to reclaim the portion of the payout relating to his misleading claims.

“I find that for approximately one year – from April 2014 until settlement on March 9 2015 – the defendant, aided by his wife, knowingly and falsely misrepresented his psychiatric condition,” Justice Richard Weinstein said in his judgment.

Mr Yu told doctors that after the crash, he suffered a lack of motivation, energy and confidence, and had a sense of powerlessness; could not read or follow complex instructions and had cognitive impairment; could not work or drive and spent most of the time in his own room unable to meet his basic needs; required a carer and struggled with daily activities including washing, cleaning and eating; and had little contact with people, including family.

But lawyers for Allianz presented evidence that he engaged a contractor to build him a house in Thornleigh, NSW, was regularly present at the job site, and was seen driving. They said his “appearance, presentation, mental acuity, ability to interact and actively engage in negotiations and discussion, to concentrate, process and problem solve, as well as his regular attendance at the building site (more often than not alone) cannot sit with the representations made by the defendant of impoverished mental faculties, being barely able to function and requiring a carer for the most basic daily activities”. 

They also showed he had run his family’s finances, taught at a Korean school and completed the Australian citizenship process.

They argued his credibility had been “destroyed” during cross-examination. The judge agreed and ordered Mr Yu repay the partial payout, plus costs.

The full ruling can be read here.