A BUSINESSMAN from Warrington is facing bankruptcy and homelessness despite winning a court battle against petrol giant Shell.

Steve Fallon, of Penmark Close, Callands, took the oil company to court for allegedly misleading him in a business venture which left him £285,000 in debt.

But despite the judge finding in his favour, Mr Fallon was awarded just less than one fifth of his total losses.

In 1986, Mr Fallon set up a limited company to run petrol filling stations and he took over a Shell site in Partington, Manchester.

By the time he was introduced to the Shell share scheme in 1990 he was running four stations for the company.

After signing up to the new scheme and completing a three-week intensive training course with flying colours, Mr Fallon took over a site in Bolton.

"The site was very slow to pick up any business," he said. "I was constantly assured that it would come good and told not to worry."

He claims that a profitability model from Shell painted "a very rosy picture", but proved to be misleading as the site never picked up and made substantial losses instead of profits.

He also says that an independent accountant's report prepared by the company's bankers found that the problems lay in Shell's figures being too optimistic and that without any assistance from Shell, Mr Fallon's company had a bleak future.

The site went on to lose £8,000 in its first year and, despite a second, similarly optimistic profitability model, things did not work out and Mr Fallon eventually wound up the company in 1992.

"I was on the scrap heap at the age of 35," he said, "and tried frantically to get a job but I found it very difficult indeed."

Soon afterwards, Mr Fallon served a writ on Shell and, after having his case thrown out in 1998 only to be reopened in 1999, a split trial took place one for liability and one for damages.

But after finding in favour of Mr Fallon, the judge began a damages trial, the result of which has left Mr Fallon in tatters.

The judge believed that Mr Fallon should have cut his losses sooner and he consequently awarded damages of only £43,500, despite a claim for £285,000.

"This will be swallowed up in legal costs and I will not see one penny," said Mr Fallon. "I will now have to find the money to pay off the company's bank overdraft.

"They have a charge over my family home and my retired parents' home, so we could well be forced to sell both properties and become homeless.

"I took on the might of one of the world's most respected companies and beat them in court but now I stand to lose everything."

A spokesman for Shell said: "We consider the matter to be closed and have nothing more to add."