I've seen worse, though not in Lit.
At Carolina, the Engineering program had a professor who, one semester, failed -everyone- ...except for the guy who was from the exact same part of India that he was.
Everyone there tromped down to the Dean's office and showed him the facts. They all got regraded, and the prof was not retained.
But worse than that was the Thermodynamics prof who graded entirely on the curve. As in, the Bell Curve.
The first test was six definitions and one problem involving steam. All but one person in the class used the Ideal Gas Law to solve it. And he marked us all wrong, because -he- hadn't taught us the Ideal Gas Law yet. (Never mind that you had to have two semesters of Physics to take Thermo...)
So that first test the class average was a 34 (the one guy pulled it up that high), with a standard deviation of around 17... so the 30s that most of us got was a... C.
Second test, the class average was a 92 with a standard deviation of around 19. So my 100 was a... C.
The final, the class average was a 100. There was no standard deviation. So my 100 was a... C.
Needless to say, a lot of pissed off people in that class.