First, let me state that the way your friend is interpreting the above verse is obviously very literal and they are totally missing the point Christ is trying to make.

If someone is so convinced by this particular verse that no one should be called “father,” then they must immediately forbid children from calling their male parent “father” also. They should refrain from using such expressions as, “My father and I went fishing;” and for that matter, will also need to do a lot of rewrites to the Biblical texts because the word “father” is used continually throughout both the Old and New Testaments. Here are just a few examples

• “Honor your father and your mother” – Ten Commandments
• “Father Abraham! Have mercy on me…” from Christ’s parable of Lazarus and the Rich Man” (Luke 16:24-25).
• “Father! I have sinned against heaven and before you and I am no longer worthy to be called your son.” From Christ’s parable of the Prodigal Son (Luke 15:21). 
• The Apostle John addresses his disciples as “beloved children” in his epistles, making him a father figure de facto.
• The Apostle Paul writes: “I have begotten you in Christ Jesus” (1 Cor. 4:15) and he explains that this is why he had become a father to those who believe: “Though you have ten thousand instructors in Christ, yet you have not many fathers.”
• Abraham became “the father to all who believe”, writes Apostle Paul (Rom. 4:11), and is often referred to as “Father Abraham” throughout the Bible.

In asking us to refrain from calling any man “Father,” our Lord did not expect us to take this literally. What Jesus meant was, don’t accept any person on earth to be your God in Heaven – much as the Romans did with their Emperors. Terms such as “Rabbi, Father, or Master” were, and still are serious titles of respect and indicate specific positions of duty, responsibility, and trust in the Church. Although no formal documentation exists as to exactly when these terms began to be widely used, you can see by the above scriptural quotations that the Apostles were always considered “Fathers” to the Early Church.

Nobody can be forced to use a specific tile when address a priest. However, in the Orthodox mindset, addressing our clergy as “Father” (or a bishop by, “Master”) is not an imposed law, but something that goes far beyond a rule; it is a familial, family-like notion in much the same manner as intimate words or names are often used among people who love each other.  Although we each have a biological father, the priest is likened unto a “Spiritual Father;” one who re-births us into Christ through Holy Baptism. Therefore, out of love and respect, we treat him as such.

Calling the priest “Father” is also not so much a question of respect for the person, but to the clerical rank and ministry to which that person has been called; acknowledging that he has dedicated his entire life to this holy purpose.