A police patrol stopped the 17-year-old youth's Honda Civic outside the Dunedin District Court in lower Stuart St as part of a routine traffic stop shortly after 9am.
The driver was asked to sit in the patrol car's passenger seat while the officer ran a check on his licence, which revealed he was driving while suspended, Senior Sergeant Mel Aitken said.
The unemployed youth, who was driving to the court for a scheduled appearance, then decided to run off, she said. The officer tried to detain him, pulling off his shirt in the process.
The youth ran back to his car. One of his two passengers, believed to be his mother, tried to exit the vehicle.
As the youth drove around the corner on to the one-way system, the officer returned to his vehicle and initiated a police pursuit.
Witnesses said the teenager's car was travelling at "high speed" for several hundred metres in Cumberland St, before colliding with a Foley Plumbers Ltd van near Queens Gardens, after the fleeing teenager drove through a red light.
The crash occurred before the officer turned the corner in pursuit of the vehicle, she said.
The van was shunted on to its side.
The alleged offender then left the scene on foot, but was apprehended by a passing patrol less than 50m away.
The sole occupant of the van, a 31-year-old apprentice plumber, sustained face and torso injuries and was treated at the scene by St John ambulance staff.
The alleged offender had surgery at Dunedin Hospital last night for an arm injury.
Snr Sgt Aitken said the youth faced a raft of charges from the incident, including escaping custody, two counts of reckless driving causing injury, driving while suspended and failing to stop to ascertain injury. More charges were possible.
He would probably appear in the Dunedin District Court next week.
A female passenger who remained in the vehicle was also taken to hospital with a suspected broken foot. She was helping police with their inquiries, Snr Sgt Aitken said.
The van driver - who was taken to Dunedin Hospital with a cut above his eye and bruised ribs - was lucky to survive after taking the impact of the crash, she said.
Police would not tolerate people who risked the lives of others.
"Police have no intention to hand the roads over to those who think they are above the law, and we will throw all our resources at these people and hold them accountable for their actions.
"This had the making of a fatal crash, and his actions were abhorrent."
Earlier this month, Labour leader Phil Goff told the Police Association drivers who fled from police should have their vehicle impounded and licence suspended on their first offence.
Police take part in 2500 pursuits each year, with one in four resulting in a crash.
