The plaintiff, former Calwell man Dylan Yates, was transporting a Ford Falcon XB GT from Shepparton to Canberra in November 2018 as part of his employment when the interaction with NSW Police occurred.

In his statement of allegations against the state of NSW, the 28 year old said that when he stopped at the Shell Service Station in Gundagai, two officers - a constable and senior constable - pulled up behind him.

Then senior constable Andrew Murphy made a comment that implied Mr Yates was a motorcycle gang member, to which he denied, and asked if he had any 13s tattooed on him.

He then grabbed and twisted both of Mr Yates' arms before being told the two officers would search his truck for guns and drugs.

The senior officer then pushed Mr Yates onto the road. The latter also realised $5000 in his bum bag was later missing.

Senior constable Murphy then served him a defect notice for Mr Yates' truck, but an inspection four days later in Fyshwick revealed no defect.

Two months after the incident, the same officer charged him with failing or refusing to comply with a search.

Mr Yates pleaded not guilty and in October 2019 at Goulburn Local Court, the prosecution withdrew the charge.

He said the incident left him with psychiatric injuries, including PTSD, major depressive disorder, hurt, humiliation and distress.

The hearing of the case began on Monday in the ACT Supreme Court and on Thursday, the parties came to a settlement after the defendant requested it.

New Chambers lawyer James Sheller SC, representing Mr Yates, tendered a notice of discontinuance, or withdrawal, that was executed by legal parties on both sides.

Chief Justice Lucy McCallum said no orders were required to be made and only an acceptance of the notice.

She then spoke directly to Mr Yates to acknowledge the four years since the incident and the time it has taken to have his case finalised.

"I've seen a lot of material in the medical documents, indicating that the processes of the court during that time exacerbated the stress that you suffered," she said.

"I would like to extend an institutional apology on behalf of the justice system for the time ... for that to resolve for you and the impact that that had on you."

The Chief Justice said the medical material also expressed hope that the resolution of the legal proceedings would help Mr Yates' recovery.

"I sincerely hope that the resolution of these proceedings gives you the strength to recover and move towards a happier way of life," she said.

Mr Yates responded with "thank you".

Outside court, he said he was "fighting for my rights".

"I've accomplished what I had set out to," he said.

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He had given evidence earlier in the week, saying senior constable Murphy "did shove me" and "he pushed me".

His mother, Marion Yates, gave evidence about seeing his psychological spiral following the incident.

She said her son progressively withdrew 12 months after the incident and that she had attended counselling appointments with him.

The court heard Mr Yates was also hospitalised for mental health matters.

The settlement came during the cross examination of senior constable Michael Smith, who was the constable in the incident in late 2018.

During examination in chief, the Parramatta-based officer said he did database checks of Mr Yates before getting out of the car when the plaintiff told senior constable Murphy, who was conducting the "search with a sense of hostility", they needed a warrant to search him and his truck.

Among its defences, the defendant said the use of force at all times was reasonably necessary in the circumstances.

The Supreme Court last August ruled for the hearing to be held in the ACT with a main reason being that doing so was least likely to exacerbate Mr Yates' psychological health matters.

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