An appeal by Jonathan and Jamie Irving which relates to the winding-up of their company has been rejected by Appeal Judge Tattersall.
The pair had claimed an advocate acting on behalf of the Manx government had deliberately misled a hearing in February 2010.
They said this led to the winding-up of Street Heritage over outstanding tax liabilities of around £183,000.
Ed Oldham reports:
Sailings cancelled due to predicted gales
Yellow weather warning for Thursday
Have your say on the future of the Island's plantations
DEFA launches consultation on its plans to move towards mixed, multi-age woodlands
Warning for 'disorderly' parents attending schools
Police tell people to follow 'appropriate channels' with concerns
Yellow weather warning for gale force winds
Travel disruption likely
New board members sought for abattoir
Recruitment process now open