We had a somewhat similar "problem" at my highschool around 3 or 4 years ago with an AP Political Science teacher when I was in his class. The teacher was in his mid 20s and would always mess around with students in class, calling them stupid if they said something retarded, or giving them high fives if they made an awesome joke at someone else's expense.
I thought it was fucking hilarious, and so did the rest of the class. Then one day when a student was going on a lengthy rant about something that bothered them he replied "bitch, bitch, bitch" (as in they were "bitching" about something that was unimportant). Needless to say this nutty homeschooled albino transfer student chick complained to her parents saying he called a student a bitch (totally taken out of context), who complained to the school, and he ended up on leave until winter break (happened at the beginning of the school year, so around septemberish?)
The chick who the remark was targeted at said she didn't care at all and thought it was funny, and so did the rest of the class, but just because one proper bitch got offended the shit hit the fan.
Pretty lame punishment if you ask me, if the person targeted thinks its funny, and so does the teacher, then where the fuck is there a problem? People are way too uppity these days.