Help - major hair problem!

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Hey all - I am a hair stylist in Dallas, Texas.  I was out for some drinks with some friends of mine that work in various salons, and one told me she may be getting sued in the future.  The case sounds completely outrageous, but since I use the same products that my friend did, and I'm suddenly worried that this can happen to me. 

 My friend (let's call her Melody) was seeing a client (let's call her Joanne) for a hair-coloring appointment.  Joanne told Melody during a consultation that she had virgin hair.  Melody reccomended Goldwell Colorance.  Her hair was clipped up and foils were applied.  Melody then brushed Joanne's hair with a mixture of Goldwell 20 volume developer and Oxyplantin, and applied the mixture to her hair.  Each section of hair was then folded over into a small package with the aluminum foil.  While Melody was applying the foils, Joanne told her that a spot on the top of her head was painful.  She indicated it felt like a curling iron was on her head, or so she says!

Joanne claims that Melody went to get cotton.  According to Joanne's outrageous story, she then reported that she saw smoke rising from the top of her head.  She flipped her head over and started slapping the top of it.  Melody returned with the cotton and took Joanne to rinse out her hair.  None of the foils were removed from her head.  According to Joanne, the crown of her head was rinsed with cold water by Melody for approximately 2-3 minutes.  Joanne then returned to her chair and the highlighting process was completed.  According to what Joanne later said, the pain continued to feel as if curling iron was burning her head during the remainder of the process, which took 15-20 minutes.  Joanne said that the pain was somewhat mitigated by rinsing her hair with cold water.  Joanne also said she discussed her head pain with Melody throughout the rest of her treatment.

At the end of the treatment, Melody removed the foils at the shampoo sink.  This process took a couple of minutes, and Joanne claims her head head was burning.  She asked for a glass of water.  Joanne's hair was then rinsed with water.  Toner was next applied and combed through at the coloring chair by Melody.  Jer hair was then shampooed by Melody.  Joanne�s hair was towel-dried, with some pressure and patting, at the shampoo sink.

Thereafter, Joanne's hair was cut to her shoulder blades using a scissors and comb.  She continued to tell Melody that her head hurt.  Her hair was blown dried for 5-10 minutes and Joanne still felt the same pain while her hair was being blown dry.

The following week, Joanne called the salon to speak to the manager.  She told her she had received highlights and received 2^nd and 3^rd degree burns on her head!!!  Since then, she has threatened to sue my friend, and reported that bogus story. 

My friend Melody swears up and down that Joanne never complained of any burning.  She said that, Joanne once complained that she felt the foils swelling.   

Joanne also says it would be impossible for the Goldwell Colorance to have that kind of effect on someone's hair.  Has anyone heard of this happening before?  Could an allergic reaction to henna have caused this?  I am concerned about my friend, and worried that this could happen to me.  I have never heard of Goldwell having this kind of effect on someone. Joanne says that she was burned pretty bad, and now has a permanent bald spot!

Any help would be appreciated.  This sounds bogus, but I want to help out my friend. 