Basically, Prototype you went too harsh on Buddy. Swearing in the server is allowed as far as nobody complains about it. This rule is sometimes misunderstood. Some players think that they are allowed to say whatever they want and some admins think that the players can't say anything at all (your case).
Buddy was just calling people retarded and according to your posts, nobody was complaining about it. "Retard" is considered as light swearing like "noob" (yes I know that you called him noob after). But there are some limits to this rule, like when somebody is using heavy language (Ryan for example) but Buddy did not basically abuse this rule.
3. Use of rude language is tolerated, but using it excessively to flame, insult or disrespect anyone is not.
This rule explains it all. You are allowed to use rude language while speaking in the Jailbreak server and Buddy's intention was never of flaming, insulting or disrespecting anyone.
Even though, that's not a big deal and I would like Proto to understand that there is no need in taking actions sometimes because I myself have seen Buddy calling the prisoners retards but I personally didn't do anything since I knew that this was not a reason to blame Buddy and because I know Buddy and I know that he would never say this seriously. And nobody complained about it, so what's the problem?
And all those who might think that Proto was right. I know that Proto warned Buddy before kicking him and that's because Buddy disrespected his warning that he kicked him. But the warnings were unreasonable. Proto, you need to act with more professionalism. Sometimes using the rude language can be offensive, but this was not the case.
Furthermore, you should not stick at the idea that if someone is being disrespectful or for example, swears, should be punished. Because sometimes a player might break a rule, but you cannot take actions on the player because he broke such rule. You need to take an action or not according to the situation if you really want to be fair with everyone. That's why you should act with more professionalism.
In conclusion, I would like to say that both were wrong and right at the same time. Buddy did not offend anyone by his language but failed to follow Proto's warning. Proto was right by kicking Buddy for disrespecting his warning but showed a lack of professionalism by giving him unreasonable warnings.
Dropped.