How would you react if somebody insulted you in public?

Earlier today, I was chillin out at a mall with my homies and we decided to have some coffee at Starbucks when i encountered my mortal enemy of all times at the same cafe. We loathed each other from the very first day we met. Upon entering, I already knew he felt my presence cuz made an annoying facial expression. So we ordered coffee and then found ourselves sitting just one table away from them. I was about to hold my cup of frap when I heard him making offensive remarks about me, well i know he was pointing those insulting words to me cuz he added "that guy on blue Sean john" and i was the only one wearing blue Sean jonh's there. i just ignored it, but i guess he was provoking me because he mentioned my name on his next offensive remark. So i looked at him and was like, "Are you talking about me?!" and he's like, "Yeah, do you have a problem with that?" I was like, "Yeah i have a prob with that so what are we gonna do?!!" but then my friend held me back and told me that he's worthless and all that. The next thing i knew, that a-hole was already talkin loudly, callin me names and said something about my mom being a "low class baby maker." I really wanted to smash the cup of coffee i was holdin to his face. But my friends held me back again and told me it aint the "right time and place." Sh*t. Do i have to think of a right time and place when im already going to explode of anger? So anyway, we just left the place and promised to ourselves that he's gonna get busted for what he did to me.

Now, if ever that I saw him again and he do the same thing he did at Starbucks, can i hit him and not get sued?
What about you? What's your story on being insulted in public? How did you react?