A FORMER sub-postmaster who claimed a £25,000 deficit at his post office was due to computer errors, has been left facing homelessness and destitution after losing his High Court fight.

Lee Castleton, 37, was hit with a £25,000 claim by the Post Office after the cash was registered as "missing" from the Marine Drive Post Office, in Bridlington.

But, during a two-week hearing at London's High Court, he argued the alleged losses were "not real" and that flaws in the Post Office's own computer system were to blame.

However, yesterday a judge dismissed those claims and Mr Castleton must now not only pay the £25,000, but also enormous legal costs bills, estimated at over £200,000.

He was appointed sub-postmaster of the Marine Drive Post Office in June 2003 but, following an audit in March the following year, he was suspended and later removed from his post over what the Post Office said were "large unexplained shortages" of more than £25,000. The Post Office sued him for the money back, but Mr Castleton insisted the "losses" did not really exist and the problem was caused by problems with the Post Office's computer accounting system.

Mr Castleton, a married father-of-two who still owns and lives above the shop, counter-sued the Post Office for thousands of pounds in compensation for alleged wrongful dismissal and fought his case tooth and nail in court.

Judge Havery said: "The losses must have been caused by his own error or that of his assistants."

Judge Havery also ordered that Mr Castleton pay the legal costs run up by the Post Office in bringing the case as well as interest on the £25,000 debt.

Mr Castleton said after the hearing he will now sell his home and the shop to cover the costs of his debt to the Post Office and his disastrous legal fight. He said: "I'm going to have to sell my home and the shop now to cover the costs. I don't know what the future holds for me, but that's life."