Plankton tries to steal the formula, but slips and sues Mr. Krabs. Mr. Krabs hires a lawyer, but his lawyer slips and is hurt, so SpongeBob must try to help Mr. Krabs win the case by trying to open a briefcase that has something very important in it.

After yet another attack on the Krusty Krab by Plankton, SpongeBob asks Mr. Krabs why they hate each other so much. Mr. Krabs tells his side of the story in a series of flashbacks.