I've got a slightly subtler but similar story. I had a math teacher in high school who would curve her test scores to the lowest top score from any one class. In other words, if she taught three identical 10th grade Trig classes in a semester, for each test she would take the three top scores (one from each class), and curve the test to the lowest of those three scores. It's a reasonable enough idea, I suppose, since different classes will have different questions and thus spend slightly different amounts of time on various parts of the material.
The trouble was that she would not give over 100% to the people who earned a higher score on the test than the curve. Her tests were not weighted, meaning that Test-A curved to 85 points was actually worth less than Test-B curved to 90 points. (Supposedly, the then-new district-wide computer grading system couldn't handle such arithmetic complexities.)
At one point, I received a score above the curve. Let's say I got 90 of 100 points, and the curve was 85. Later, when I saw my grades, I asked why I was only given an 85/85 on that test. She explained that she didn't give "extra credit," and she wouldn't budge. She would say things like "you got 100% of the points, so there's no reason to complain." I asked, then, if I could at least be given a 90/90, and she very confidently explained to me that 100% of the points on the test is the same regardless of the total number of points. She would not entertain the notion that a 90/90 is better than an 85/85, much less that a 10th grader might be able to correct an arithmetic mistake of hers. I even presented the example of changing a 100/100 assignment to 1,000,000/1,000,000 and noting the affect on the total grade, but she would have none of it.
As you can probably tell, I'm still bitter about that test.