Court orders fertility clinic Livio to pay doctor 25 million krónur

The Icelandic Court of Appeal has upheld a district court ruling, ordering fertility clinic Livio to pay fertility doctor Ingunn Jónsdóttir approximately 25 million Icelandic krónur, plus interest and legal costs. The dispute centered on the remaining 20% of the purchase price for Ingunn's stake in Livio's parent company, IVF holding ehf.

Ingunn's employment with Livio was terminated in July 2019. She challenged the dismissal, leading to a settlement in November 2020 that included a purchase agreement for her shares. The agreement stipulated that Livio would pay 80% of the share value within 20 days of its determination by an independent party, with the remaining 20% held in escrow. This was contingent on Ingunn adhering to confidentiality and non-competition clauses for three years.

Livio contested the final payment, claiming Ingunn violated the non-compete agreement by co-founding companies with her husband in early 2023 and late 2023, allegedly in preparation for a new fertility clinic. However, the court found no evidence that Ingunn participated in such activities during the three-year restriction period. The court noted that non-compete clauses are often interpreted narrowly and that the burden of proof lies with the party alleging a breach. The establishment of companies by her husband did not constitute a breach, especially since they had not commenced operations within the specified timeframe.