Billy and Georgia are faced with a crisis of confidence in their marriage. Elaine threatens to sue the firm for sexual harassment if Fish and Cage don't meet her demands for improved working conditions. Ally, Georgia, and Cage take on a lucrative divorce case. Fish uses some tactics, which causes a debate between the two parties as to which side is the most amoral.

Ally and Renee are bridesmaids at a friend's wedding. They both bristle at the absurdity of the rituals performed, and swear to never do it. Richard asks Ally to flirt with a wealthy new client. To Ally's chagrin, Cage offers no protest on her behalf, admitting he's undergoing smile therapy which has renewed his appreciation for behavioral reinforcement. Ally and Georgia try a case about overturning a prison warden's decision to refuse marriage for a life-term inmate.

Cage prepares Ally for Renee's trial. Renee is fast becoming a basket-case because she's convinced Cage's untraditional tactics are going to cost her job. Georgia tells Billy that she took a home pregnancy test, and it came up positive. Ally is of course thrown by the news, but recovers just in time to reclaim Renee's defense. Ally forces Renee to confront her problem with sexual aggressiveness. Ally and Renee have a sleep over and for the first time, Ally appears to be the grown-up in their friendship.

Ally is feeling increasingly antipathetic towards Nelle Porter. She thinks Nelle brings out the darker side of the firm. Nelle represents a First Amendment case about a popular radio talk show host, ala Howard Stern, who is accused of inciting a hostile work atmosphere through his vulgar discourse. Nelle triumphs by implying that the talk show host has certain sexual dysfunctions, then promptly drops the case as a legal tactic. Ally becomes disgusted. Cage takes on the case of a restaurant owner being sued by a man claiming intentional infliction of emotional distress for serving horse meat to patrons. During the course of the case, Cage finds it increasingly difficult to do his job due to a preponderance of empathy for the horse in question.

The lawyers are shocked to discover Ling has been keeping a secret. Ally visits Dr. Butters at the hospital one day and sees he's treating a terminally ill little boy. The little boy, Eric Stall, sees Ally in the doorway and finds out that she is a lawyer. He asks if he can retain her services because he wants to sue God. Ally tries to tell him it's not possible, but Ling, who was at the hospital at the same time, overhears and tells the boy not to listen to Ally.

Ling's curiosity is piqued when she dreams about kissing Ally. Under the pretense of becoming better friends, Ling and Ally go on a "date". Meanwhile, John overhears Nelle talking about her fantasy, which sends him back into the depths of sexual insecurity. It seems everyone in the office is pre-occupied with the topic of sex and Billy and Renee feel they are the only people actually working. Renee defends a woman who is accused of sexual harassment by her female co-workers. The co-workers claim that she has turned the office into a sexual arena and is suing. Billy represents the company, but finds that he and Renee do not see eye to eye on the case or on the issue of a woman's sexuality in general.

Nelle schemes to leave Cage & Fish in order to start her own firm and it leaves both Richard and John furious. She also recruits and convinces Elaine go with her, but her plan backfires. Meanwhile, Ally dates Brian Selig.

Ally runs into Kimmie Bishop, an old friend of hers from college. Ally makes fun of her in front of her fellow puritan friends, and Kimmie is so outraged she decides to sue Ally for defamation. Instead of having someone from the office to defend her, Ally hires therapist/lawyer Larry Paul. When Renee tells her he's married, Ally freaks. At the bar, while trying to decide if she would date a father or a son, she sees Larry with Nelle. Turns out he's divorced, and so Larry dumps Nelle to go out with Ally. Meanwhile, Mark is having a hard time at the office because nobody approves his relationship with Cindy, so he breaks up with her.

John makes a surprise return and is shocked after hearing from Raymond that Richard threw a party in his "hole". After confronting Richard, John gives the office a speech, in which he reveals the reason why and where he left to. Raymond gets Glenn and Ally to double date with him and Jenny. It's Jenny's birthday, and everyone forgets it. Glenn is the only one who didn't get her a present, so he sings a very romantic Elvis song at the bar for her. He asks her back, and she accepts. Ally wonders if she should hook up with John, but the ghost of Larry is still present in her thoughts. Meanwhile, Ling poses nude to boost her TV character; Corretta and Richard find themselves involved in a police investigation on a woman who used to marry rich old men for the money