Senior partner Edwin Poole has a nervous breakdown in front of everybody. Denny Crane has now to face the loss of a friend in the office. Meanwhile, Alan Shore finds a new enemy in Brad Chase, who is not only the ex of Sally, but also makes him work on a case of a little girl, who wants to play "Annie" in a musical production. Lori is taking care of Ernie Dell, who wants his marriage to be annulled, because he thinks his wife cheats on him. Sally and Brad work on a case concerning a divorced couple and their kids.
Alan tries to get his ex-girlfriend Christine, who once tried to kill him, out of a psychiatric installment, but he must find out that this wasn't the best idea he ever had. Especially Sally's behavior towards Christine doesn't make it easier for Alan and Sally to get closer. Denny meanwhile still has trouble with his partners,w ho want him out of the firm.
After he helped her to get out of a psychiatric clinic, Alan now has to face his ex-girlfriend Christine as an opponent in court. Lori is appointed to help Alan. Sally has her first real case of which she has got to take care all by herself and it isn't going very good for her. Denny Crane's son Donny, whom he hasn't seen for 15 years, shows up in the office, but not just as a visitor but also a lawyer.
Edwin Poole manages to escape from the psychiatric hospital; and returns to the court room. He takes over a case without anyone recognizing it until Lori appoints herself as his assistant in court. Sally realizes that it is much harder to be in a relationship with Alan. Alan himself still has to fight with Brad over his position in the law firm.
Alan and Tara defend a hypochondriac who is suing his doctor for malpractice. Brad and Denny work on one of Edwin Poole's old cases where their client, Holcomb Pharmaceuticals, is being sued for bilking senior citizens out of millions of dollars. Sally and Lori defend a man who killed a guy who beat him up for years ago with a martial arts punch
Alan represents the husband, who is running for mayor, of his old crush Samantha, when a false rumor is publicized. Denny awaits the results of the test which will reveal whether he has the Alzheimer Disease or not, while Lori helps a lawyer convincing his wife to give him his suns frozen umbilical cord, which would save his life. Meanwhile Denny takes Sally's client who is suing a toaster company for his faulty product.
Lori helps a former informant, who was shot while robbing a convenience store, not to have the bullet removed which connects him to the crime. Meanwhile, Alan tries to help his client who is accused of being a slumlord and is forced to do despicable acts from an infuriating judge. Denny gets arrested for solicitation.
Alan takes over a case Denny rejected for personal reasons. He has to defend a man who was fired from being Santa because he is a transvestite. Brad an Alan bet on the outcome of the case. Lori's therapist is worried that one of his patients may kill someone and asks for legal help.
Alan and Denny defend a drug company who is sued by a woman for taking her off an experimental pill which could have healed her sickness. Tara gets new information which would probably help her an Lori to win their case, but the way she retrieved it could cost them their case and careers.