The first case Georgia brings to Renee's new firm pits them against Cage and Fish. Georgia defends Newman's, an upscale department store against Steve Mallory, who worked as the store's Santa for seventeen years. Cage represents Mallory, who claims that he was wrongfully fired because Newman wants to hire a younger, thinner Santa. Meanwhile, Ally is haunted by visions of herself as a little girl. Ally manages to bring Georgia and Billy together to talk, and Billy sees that he wants Georgia back. But Georgia is not as eager to work things out yet.

Elaine finds a real, live six-week-old baby in a nativity scene manger and wants to keep him. Cage and Ally represent Elaine in her fight to gain custody, while the rest of the office (full of child-less lawyers) become enchanted with the baby. Even Ling considers having children. Billy attempts to reconcile with Georgia. In preparation for the Christmas party, Elaine convinces Ally to sing a sexy song but Richard and Billy have their reservations.

Ally befriends a homeless man and they hit it off, but just when Ally starts to think the man could be Mr. Right, she is stunned by what she finds about him. Meanwhile, Ling is arrested for running an escort service as a brothel. While defending Ling, John's past with a hooker comes to light and upsets Nelle. Billy, still on his pro-testosterone kick, hires six of Ling's escorts to follow him around and be his "assistants."

Ally has a romantic dream about Cage and wakes up thinking that he may be the one for her. When she finally gets up the courage to tell him, he admits that he often thought she might be the one for him also. Meanwhile, Elaine goes on a date with a great guy only to learn that he asked her out because his friend said she was easy.

Georgia blames "Cage & Fish" for the new Billy, and is suing the firm for the break-up of their marriage. She cites many issues as leading to Billy's breakdown and the ultimate dissolution of their marriage. However, during the court hearing they discover that the root of the problem lies elsewhere.