No, that has never happened to me.
I've been to S&W a few times and found their steaks to be adequate and their service to be rather mediocre. If that had been I and I had heard waiters challenge me as those two waiters challenged you, I would have asked for the manager to come to my table, tell him/her what had just transpired, and left the restaurant after that. If we had consumed anything, I'd give the manager money to cover it and then leave.
I am surprised you both put up with that.