It sounds like it is a really a question about "force majure"...
Which seems like it is a very subjective issue. Is "covid response" completely out of UCLA's control?
It seems to me that if this goes to trial, it would matter a TON where the trial takes place. In Texas or Florida, no one would think UCLA's COVID response was "completely out of their control". But in San Francisco, probably they do think that COVID response was completely justified.
What do you think happens....