Actually, this story makes me want to defend the teacher here.
Seems to me that this grading regime was explained beforehand and was a fair way of assessing your spelling and comprehension. Your complaint seems to be that you think the spelling should be a smaller proportion of the grade. While I agree with that, this appears to be a case of the teacher valuing skills differently not (as with so many other anecdotes being posted here) a case of the teacher not evaluating students fairly.