Rollins represents Kenny Peterson, a mentally disturbed young man who speaks only through his obnoxious, ventriloquist's dummy in an assault case. Meanwhile, Kelsey's celebrity client, Amanda Shaw, sues a tabloid magazine for publishing a false article which resulted in her teenage daughter's suicide and she ends up worse than she started. Markowitz and Kelsey meet with Ross Burnett, a baby broker in their continuing quest to adopt a baby. Victor represents an unusually arrogant Kuzak as he faces a disciplinary court for his conduct over not reporting an unlicensed Richard Mathers during his personal injury trial while Mathers is representing himself in his own criminal trial for practicing law without a license. Also, Markowitz agrees to cater the annual Christmas office party and ends up playing Santa Claus.

Grace reveals a technicality that could free convicted cop killer Lyle Torrey. But a certain police officer, named Lt. Dolan, tries to prevent Grace from getting Torrey released pending a new trial. Becker forms a partnership with Dave Meyer in trying to make their own do-it-yourself-divorce video tape to market to the masses. Meanwhile, Abby grows more attracted to Lt. Ringstrom and they finally begin a torrid affair. Also, Kelsey and Markowitz meet with a possible birth mother to adopt her baby.

Grace once again faces off against Lee Atkins, the conniving and racist black lawyer, who again uses the issue of race in which he is defending a middle-aged black man who shot and killed a white man in his apartment whom he thought was an intruder, whereas Grace's argument is that it was a drug deal gone wrong. Seeing that the odds are against him this time, Atkins resorts to low and underhanded means against Grace to get a mistrial declared rather than lose. Meanwhile, Abby unwisely advices a client of hers to accept a settlement because her own practice is in financial difficulty. Markowitz and Kelsey are contacted by their baby broker who has information on a possible baby girl that they can adopt. Allison Gottlieb rejects Becker, but she goes out on a date with Victor and they immediately engage in a passionate affair.

Roxanne and Meyer attend a ceremony where he will receive the Direct Mail Man of the Year award, and she glimpses a view of her future with him. Meanwhile, Markowitz and Kelsey get an unpleasant surprise when the teenage birth mother of their child says that she wants her baby back to raise it by herself. Abby's latest client cons her and skips on his bail, which makes her look bad to Grace. The firm goes to pieces after Brackman hands the office managing responsibilities to Markowitz for the week. Also, Rollins falls for the new law associate, Diana Moses.

Victor represents Markowitz and Kelsey when Tammy Harris, the teenage birth mother of their baby, brings a claim to get her baby back. Meanwhile, Abby's latest client, mobster Frank Weiland, cons her in getting himself off murder and drug dealing charges, and later frames her for money laundering to get rid of his drug cash. Kuzak has problems facing a comedian lawyer during his case of representing a man suing the owner of a heating system for injuries, while he finally expresses dissatisfaction to Grace over their relationship and heats up his other relationship with Melanie Hayes. Also, Rollins continues to try to win Diana's affections.