Former sub‑postmaster Lee Castleton OBE is seeking £4million in damages from the Post Office and Fujitsu, with his legal team accusing both organisations of deliberately inflating costs and placing repeated obstacles in his way as he attempts to clear his name.
A preliminary hearing at the High Court on Friday was told that a series of “hurdles” had been placed in front of Mr Castleton to make his claim as “difficult, time‑consuming and expensive as possible”.
The court also heard that Fujitsu, the company behind the faulty Horizon IT system, has already accumulated more than £700,000 in legal fees.
Mr Castleton is the first individual to bring legal action against both the Post Office and Fujitsu over the Horizon scandal.
His case centres on events in 2007, when the Post Office pursued him for £25,000 it claimed was missing from his branch in Bridlington, East Yorkshire.
He denied any wrongdoing, but a two‑year legal battle left him bankrupt after costs spiralled to £321,000.
His legal team now argues that the Post Office’s original civil claim amounted to an “abuse of process of the court”, alleging that the judgment against him was obtained fraudulently.
They further claim that the Post Office worked with Fujitsu to pervert the course of justice, and that evidence relating to faults in the Horizon system was “deliberately and dishonestly” withheld.
Mr Castleton was one of 555 sub‑postmasters who took part in the landmark group litigation against the Post Office led by Sir Alan Bates.
Former sub-postmaster accuses organisations of inflating costs and blocking justice
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Although the group won the case in 2019 and reached a settlement, much of the compensation was consumed by legal costs, leaving many without what they consider proper redress.
Mr Castleton is now seeking to have that settlement set aside, arguing it was obtained through what his lawyers describe as “sharp practice” by the Post Office.
Neither the Post Office nor Fujitsu has yet filed a defence.
Both organisations asked the court to split the case into two trials, arguing that the first stage should determine whether the 2019 settlement prevents Mr Castleton from pursuing his individual claim — a move that could bring the proceedings to an early end if successful.
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Mr Castleton’s barrister, Paul Marshall KC, opposed the request, describing the claim in written submissions as being of the “utmost simplicity”.
However, Mr Justice Trower and Judge Francesca Kaye ruled that the case will be divided into two trials, with their full reasoning to be provided at a later date.
In a statement, the Post Office said it had made every effort to engage with Mr Castleton over overturning his civil judgment and remained willing to continue discussions.
However, it said it does not believe his current claim is valid and argued it has a duty to its shareholders to defend the case.
Alan Bates has led the fight for sub-postmaster justice
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PASpeaking outside court, Mr Castleton told the BBC: “We know what we need to do and we’re very happy where we are.
“We’ll get a defence and that’s what we’ve been waiting for. The facts aren’t going to change. It’s just the money.”
He said he is seeking “vindication” that the judgment which has “blighted” his family’s life for nearly two decades was dishonestly obtained.
Mr Castleton’s case remains one of the most prominent arising from the Horizon scandal.
Unlike other former sub‑postmasters whose criminal convictions have since been quashed, the civil judgment against him remains in force.
Anyone who is in emotional distress, struggling to cope or at risk of suicide can call the Samaritans anonymously for free from a UK phone on 116 123 or go to samaritans.org.