Nelle is already making her presence felt in the change of office atmosphere when Fish dumps another groundless case on Georgia. Ling Woo, the unpleasant plant manager, is back to sue a nurse in her sister's plastic surgeon's office for misrepresentation of results from breast implant surgery. Georgia would love to drop the case but can't. She confronts Nelle for dumping it on her anyway, but Nelle justifies the reassignment by saying she and Ling are friends and would end up hating each other as a result of the lawsuit. Cage reflects on Ally's progress with a mediation case between Fish's minister and a jilted choir singer. Nelle moves on to Cage and confronts him about his resistance to the notion of a potential interoffice romance.

Richard throws his annual Christmas bash as Ally and Billy get drawn into a high stakes case involving a wealthy bond trader claiming wrongful termination. Renee and Matt consummate their affair but with painful consequences. Ling tries out Christmas cheer but it doesn't work. John tries to use the mistletoe to his advantage in trying to make a move on Nelle.

Ally is plagued with hallucinations of Al Green. She talks about these hallucinations with Dr. Shirley Flott, who is seeing patients while Dr. Tracy is away. Shirley has no patience for Ally's daydreams and wants desperately to put her on Prozac. Wrestling with the idea of going on medication leads Ally to question what is so wrong about hallucinations: they bring her comfort and keep her in perspective? Meanwhile, Nelle and John defend a boy suspended for impulsively kissing one of the most beautiful girls in his class. During all this, Billy has had a series of "off the book" appointments and refuses to tell anyone, including Georgia, where he's going.