Actually I wouldn't really be happy with their misfortune, and I would hope that they were not too hurt in fact. I would likely however look back on the instance as a form of karmic kismet, which would serve to reinforce my belief that the power of the universe is much larger than we can every imagine. When I do experience schadenfreude, I don't feel good about it, but I'm willing to acknowledge it. It's an emotion much like hate, envy, or jealousy, which I try to avoid, but that can only be done first through acknowledgment and understanding why the emotion gets triggered.