We are victims of our own perception. We make judgment calls all day long about the people we come across and the places we go. We perceive the situation we're in with the bully as a reality, where there's nothing that can be done about it - because it's a reality. But you can change your perception, and therefore you can change your reality.
When you get to work, do you think about how horrible your day is going to be because of that mean ol' bully? What about going to work and thinking about how positive your day will be because you are better than that little twirp who goes out of his way to make you miserable? Instead of harping on the asshole with your co-workers, and dwelling in how much you despise him, start gearing your co-worker conversations towards how much you like each other, your jobs and your company. Don't focus on the negativity the bully brings to your workplace.
As you change your perception of your situation you'll notice your reality will change. Your perception can in fact be rewarding, if you focus on staying positive.
Don't be a victim of your own perception, change your attitudes, change your life.