Insurer Defeats Scripps Health in Suit Over Mold Cleanup Costs

A W.R. Berkley Corp. insurance unit is off the hook for the costs of mold cleanup at a California hospital facility that failed to give timely notice to the insurer and didn’t comply with maintenance procedures, a federal court ruled.

Scripps Health’s suit against Nautilus Insurance. Co.—filed in state court in 2021, and removed to the US District Court for the Southern District of California—alleged the insurer was responsible for the cleanup costs. It asserted claims for breach of contract and breach of the covenant of good faith and fair dealing.

But coverage was contingent on a warranty that required ...