Bishop Boot Camp
My mom was extremely upset at this and viewed it as an attack on her integrity. She couldn't bring herself to even face the bishop because she was so hurt and angry by the incident. My dad was so offended, he refused to be in the same building and stopped attending church altogether.
Over the course of the next year or two, my mom eventually forgave the bishop and my dad went back to church. There was a long time, though, where I would hear with every phone call home that there was some crisis or incident that continued to rub salt in the wound.
One thing my parents taught us well, by example, was to have integrity. My parents are strong, amazing people who keep their covenants and work hard in their callings, but when that core value was attacked by a person in direct spiritual authority over them... they experienced a crisis.
I remember trying to talk to them during this time about how they might deal with the situation, but the root of the problem was that they didn't trust the bishop anymore because of the way he treated them. I sometimes think that there ought to be some sort of Bishop Boot Camp that these priesthood authorities should go through so that they understand the human element of who they are dealing with.
When I was in my senior year of college in a BYU ward, I asked my bishop if I could take my endowments out at the temple. He explained the church's position (which I knew) that it was not recommended, and then brought up an incident I had previously talked to him about as an example of why it would not be recommended for me, personally. I was disappointed by the meeting... but mostly because since I felt I'd been forgiven for that incident, I didn't think that it should have been a reason for me to have opportunities withheld.
I understand that priesthood leaders are human beings and as such will make mistakes... but their mistakes certainly do seem to count for more than the mistakes I might make. The direct spiritual implications are huge. My parents felt betrayed by their priesthood leader. I felt that my bishop betrayed my confidence in the confessional and forgiveness process.
I'm not really sure what to do when these types of things occur. Although I happen to have examples to share, I can happily say that these are the only examples of this type of thing that I've experienced.
Just to be sure, though... they really should look into that "Bishop Boot Camp."