I'd have kicked him in the nads. That's pretty messed up.
I was lucky to have a really awesome instructor for most of my private and instrument training, except when I was at school. I had one instructor at school who was a frat boy. He signed me off for a long XC at the frat house, during a party, hardly glancing at my meticulous flight plan. Another time the same guy brought a pillow to an IFR XC (it was snowing and cloudy outside) and went to sleep. One guy I flew with flat out refused to sit down with me and brief and debrief a flight, and he only showed me how to check the fuel in an unfamiliar airplane (DA-40) when I insisted and argued with him about the necessity of manually checking the fuel quantity. And, on the day of my instrument checkride, coming home from 80nm away, I had a quadruple radio failure. I don't even know what the odds of that are, but all of a sudden both comms and both nav's were out. Thank god I had my backup radio and the plane's GPS still worked. But my handheld was hard to hear, the batteries were dying, yadda yadda yadda.
It is very sad that some instructors and some FBO's are as bad as they are. The worst of it is when a new pilot comes in and has a bad experience. Hopefully they're smart enough to take their money elsewhere, but if not, then they end up becoming crummy pilots/instructors too, and either way it's a bad experience all around.