A well-known cafe in Douglas does owe its landladies more than ?56,000 but its two directors aren't liable for debt.

So say Appeal Judge Tattershall and Deemster Corlett after hearing an appeal by Dukes Diner against a judgement by High Bailiff John Needham.

The court heard the diner and its directors, John and Ann Morton, had been ordered to pay the rent arrears, rates and rent insurance to Alice Staniforth and Alice Morrison, after the Duke Street business closed down in 2010.

The two landladies had argued the Mortons had signed a lease as guarantors who would meet the unpaid debts.

During the hearing, the Mortons produced a letter showing they had never wanted to be guarantors when they signed the lease in 2003.

Mr Needham hadn't seen the letter, and in his judgement had said although the lease didn't have any guarantors' signatures on it, it described the Mortons as such.

But Appeal Judge Tattershall and Deemster Corlett said the letter cast new light on previous evidence from Mr Morton that he wouldn't have signed the lease if he had realised he was named as a guarantor.

They ruled Dukes Diner still owed the outstanding money, but that the two directors couldn't be held personally liable for the debt.