The most common and most likely answer to this crossword clue is the 4 plus 3 letter word MANX CAT
I've seen this crossword clue in The Guardian
M
A
N
X
C
A
T
Buddy explains!
The straight part
We know that "that’s docked in Douglas" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case that’s docked in douglas = manx cat.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.