Facts

In June 2005, plaintiff Shao Lin Chen, a 47-year-old food services worker, began a course of skin conditioning treatments at Kaiser Foundation Health Plan. Chen went in for treatment of sunspots and used Obagi NuDerm in the skin-conditioning program. Kaiser plastic surgeons and aestheticians prescribed and oversaw the Obagi treatment. In November 2005, Chen claimed she suffered permanent burn injuries to her face.

PLAINTIFF'S CONTENTIONS:
Chen sought to arbitrate her claim against Kaiser. She alleged she experienced hypersensitivity to the product and suffered burn injuries as a result of the continued exposure to them. She alleged that Kaiser's plastic surgeons and aestheticians were negligent in not noticing her reaction to the treatment. She contended that they should have terminated the treatment. They instead encouraged her to continue use of the product.

DEFENDANT'S CONTENTIONS:
Kaiser denied that care was substandard, contending that the products are designed to cause irritation which then removes sunspots and the products were appropriately regimented. Kaiser contended that Chen's failure to comply with the treatment regimen caused her bad reaction. Kaiser claimed Chen caused the over-irritation by persistently rubbing and picking at her skin and the subsequent non-Kaiser therapies worsened her condition.

Settlement Discussions

Chen demanded $265,000.

Damages

Chen sought $3,340 in medical expenses; $10,000 to $12,000 in future medical expenses and $1,000 in lost earnings. She also sought unspecified general damages.

Injuries

Chen suffered from face burns and hypo-pigmentation.

Result

Prior to the arbitration, the parties settled and that Kaiser would pay Chen $90,000.