Mr Parviz Yousefi, an Iranian man, was awarded a record compensation payout for psychiatric damage suffered whilst in Woomera detention.

Mr Yousefi fled Iran in October 2001 with his wife, Mehrnoosh, and then nine-year-old son, Manoocher. They arrived by boat at Ashmore Reef in April 2001 and were flown to Woomera detention centre where they were split up. His wife and son were then transferred to a housing project, while Mr Yuosefi was forced to remain in the detention centre two kilometres away.

Mr Yousefi gained national attention for sewing his lips together, attempting suicide four times and going on a hunger strike after he was separated from his family. During his time in detention, authorities ignored 15 reports from medical experts and 11 from psychiatrists describing his illness and suicidal tendencies, and recommending that he be released from detention.

In August 2005, Mr Yousefi lodged a claim in the Supreme Court of NSW for compensation due to permanent psychiatric damage suffered as a result of his experiences in detention. He was awarded $800,000 compensation for wages, and lifelong medical care. As a result of his ordeal in detention, Mr Yousefi could never work again and would require medical care for the rest of his life.

Prior to this payout, the highest award paid by the Federal Government was made in March 2006 in the amount of $400,000 to Shayan Badraie, a five-year-old held in detention who suffered post-traumatic stress due to harsh treatment. In that case the Department of Immigration fought for 63 days, with legal costs topping $4million, before reaching a settlement. But in Mr Yousefi's case, the Government did not even bother to counter his claim.

According to his lawyer, Miranda Nagy of Maurice Blackburn, "It's clear the whole thing had become too embarrassing and they didn't want to be open to scrutiny."