Samsung, unfortunately, didn't follow the law and report the safety problem to the CPSC in a timely fashion. Beyond that, until the CPSC became involved, Samsung can be faulted for not first telling people to turn off their N7.
That should have been the first thing owners should have been told, instead of telling them just to exchange the phone, especially when replacements weren't immediately available.
I don't know the timing of this person's reported injury, but if it is related to the N7 and it happened before Samsung gave the turn off warning, I doubt this person's case will get thrown out of court.