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.

In a land where everyone has the opportunity to make a fortune, it seems that now it's Elaine's turn - it appears that her invention, the "Face Bra", might be a hit. Unfortunately, Elaine's family sues her for royalties claiming that Elaine stole the idea from her cousin Martha just before Martha's untimely death. Ally agrees to represent Elaine but when depositions appear to nail Elaine, Georgia is the first to suggest they settle. Elaine is crushed: first her family turns on her, now her colleagues are ready to abandon her. Billy and Ling are defending a computer software firm on sexual harassment charges emanating from the company's "Day at the Beach" casual days at the office. Even though participation is voluntary, Vicky Sharpe, a slightly overweight employee felt she had no choice but to participate or risk being singled out as a non-participant. John Cage remains a man transformed by his thirty-fifth birthday.

Cage must represent his second cousin, a harmless but eccentric man with a Cupid Complex. His cousin was brought up on assault charges for swatting couples in the head with a paddle to goose them into realizing they're in love. On the way out of the courthouse, the client swats Ally and Bobby Donnell, who have grown considerably closer over a case they are co-counseling. The matter entails two men who want the court to order/force a hospital to perform a heart-swap surgery. The judge turns the tables on the lawyers and asks Ally to role-play by pretending she's the judge who must render the ruling. Billy and Georgia realize their relationship is in a rut. They resolve to be less predictable, and spontaneously decide to have sex in the conference room. Ally who always seems to be at the wrong place at the wrong time inadvertently walks in on Georgia and Billy.

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.

Elaine refers a client, George Madison, to the firm who is suing a prominent feminist magazine for wrongful dismissal. The new editor in chief decided to disqualify him for the job because of his religion's views on women. George is confident in the firm and retains the services of Cage. Ally finds herself unmistakably moved by and attracted to their new client. Elaine lets Ally believe she and George are 'involved' and Ally tries to back off accordingly. Ally tries to keep her fantasies about George under control until she and Renee throw a dinner party and Elaine shows up with George as her date.

Word that Billy and Ally came perilously close to an adulterous affair is spreading through the law firm. What is most uncomfortable are the icy stares and cold shoulders Georgia is throwing Ally's way. But who can blame her? The adversarial relationship between the two women is played out in a most unusual way.

Ally's heart is broken and not by Billy or Greg. It's just one big stress fracture. She's come to the realization that there isn't anyone out there for her. She has her image of the perfect man, but is beginning to believe that he does not exist. Surprisingly, a pep talk from Fish leads Ally to become more proactive about her love life. Working on the, "you have to kiss a lot of frogs before finding Prince Charming theory", Ally decides to go on a dating frenzy. She also decides to go for a total hair and fashion makeover. Nelle is starting to become annoyed with John Cage because he seems to be the only one in the firm who understands Ally's imaginary love life. Nelle is worried that John and Ally feed off each other and now that she and John are a couple, she would really prefer her man to face life head on.

The attorney, Caroline Poop, who represented Elaine in her short lived suit against Fish and Cage regarding the constant gawking directed at a beautiful delivery woman, returns. This time she is representing the beautiful delivery women, Jennifer, who now serves Fish and Cage with her own lawsuit for same-sex sexual harassment. Meanwhile, Ally makes a bet with Renee that she can tell a dirty joke and get more laughs. The duel is set for the bar downstairs in her office building.

Ally is having weird dreams about moments from her childhood, some good, some painful. But each compels her to wrestle with the question of true love. Can it be real or must it inevitably be just an illusion? Ally's latest case is calling the issue into question as she and John Cage are representing a woman charged in Criminal Court with fraud. Barry Philbrick has testified that his wife, Kelly Philbrick married him solely for his money. He claims that at the time of their marriage, she wasn't in love with him, that her wedding vow was a lie and that she admitted it in a letter to a close friend that Barry found. Kelly readily admits to her lack of feelings for Barry: she loved him but she was never in love with him. On the stand Kelly admitted that she had been writing to an imaginary friend: the man of her dreams, who then became the standard by which every real man in her life had to measure up too.

Billy represents a woman in an annulment action case, who's deeply religious husband wants out of the marriage due to the fact that she has surgically modified her body. Meanwhile, as John gets trapped in an elevator, Nelle pulls another sleazy stunt.

Ally McBeal, 28, and a recent graduate of Harvard Law School, is harassed on the job by a senior associate. When she confronts the partners, it backfires and she loses her job. On the street, she literally bumps into an old classmate, Richard Fish, who offers her a position working for his new firm. She accepts, despite her misgivings about his ethical standards. While being introduced to her new fellow associates, she receives the shock of her career.

Ally represents a Jewish woman who needs her Rabbi to grant her a spiritual release from her marriage to her comatose husband. Ally goes personally to the Rabbi's office to find out why he is being so rigid. Meanwhile, Georgia is the target of a senior partner's wife's insecurities.

Ally senses Cheanie is withholding something when he neglects to kiss her goodnight after their first official date. Georgia asks Ally to assist her in trying an age discrimination case when the opposing litigator turns out to be Billings, the guy Ally tried to sue for sexual harassment at her old firm. Fish admonishes Ally for putting her emotional life above the firm's financial welfare while telling her to grow up.

Ally has to defend a friend of Whipper brought up on solicitation charges. She is serving as second chair to Cage, whose idiosyncrasies become increasingly apparent and mystifying to Ally as well as the other attorneys. At the same time, on a different case, a severely rotund attorney passes out from a near heart attack just outside the courtroom and Ally has to give him mouth-to-mouth resuscitation.

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.

Judge Whipper Cone asks Ally to take on a pro-bono case of a young prostitute up on her third solicitation charge. Fish, meanwhile, wants to sue his uncle's church for discrimination, due to his uncle's overt bigotry towards vertically challenged people (short people). The church's contention is that they cannot support bigotry of any kind and allowing the uncle a service and proper burial is tantamount to endorsing the appalling views. Fish promises he will not propagate the attitudes in his eulogy. Renee talks Ally into double dating with the salad-dressing-on-the-chin guy if the Biscuit is invited.

Three intelligent, successful and motivated adults approach Judge Whipper Cone about the possibility of getting legal representation in their quest to have the courts approve a legal, binding, three-way marriage. Fish assigns Ally and Cage to the case, knowing Ally's incurable romanticism and Cage's legal acumen is a potent combination with Whipper assigned to the case. Ally is opposed, claiming the three-way relationship is morally repugnant, but Georgia, feeling punkish around the holidays, points out that the clients' triangle isn't very different from the one in which Ally, Georgia, and Billy find themselves. Georgia accuses Billy of being more relaxed and open in their marriage ever since Ally re-entered the picture. Whipper, herself experiencing an annual bout of Holiday Blues, causes Fish to propose marriage, even though both know he really doesn't want to.

Ally is shocked to discover that her biological clock is ticking, unleashing strange libidinal impulses in her. During a sculpting class with live nude male models, she and Renee become enamored by one particular model with obviously generous endowments. Meanwhile, Ally has taken on the case of the 19-year-old son of an important client, who has been charged with assault because he slugged a guy in a bar who was verbally harassing his date. The boy tells Ally he felt justified because he warned the guy first, which serves to increase Ally's cradle robbing interest in him.

Ally, Georgia and Renee sign up for a kick boxing class to relieve stress. Ally and Georgia wind up having to fight each other because they're both beginners. As they start to carp more and more at the office, all pretext towards civility drops in the ring and their matches in the class increasingly intensify. Ally takes on a case about an attractive surgeon accused of performing an unauthorized and controversial transplant procedure. Cage insists it's time for her to visit with his smile therapist and she agrees. Fish, meanwhile is in hot pursuit of Janet Reno, who is still in town, and is once again busted by Whipper, when she smells perfume on his wattle finger.

Feeling nervous that the firm is not making enough money, Fish and Cage decide to hire another associate, a "rainmaker" who can bring in lucrative clients. They hire Nelle Porter, an attractive, late 20's litigator from a respectable firm. On her first day, Nelle manages to irritate Ally, Georgia and Elaine, but Fish and Cage seem very pleased with her. Ally defends a woman in her late-30's accused of having sex with a minor. When the boy testifies, Ally finds herself attracted to him. Meanwhile, Cage takes on a case of a woman who is suing for wrongful dismissal from a travel agency. When the lawyers first meet the woman, they are stunned by her appearance.

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.

Cage and Fish's firm gets a capital case to defend a man accused of murdering his comatose wife. He insists he fired up the chainsaw and cut off her hand after she was dead. Renee, who is prosecuting, has the testimony of the coroner who thinks the wife was alive and that the amateur surgery gave her a heart attack. Meanwhile, Billy and Georgia continue to patch up their marriage after Billy's indiscretion with Ally. Both of them are working on a case in which they are representing a man suing to get his job back with an insurance company who fired him over a bad hair day.

Fish and Cage find themselves representing the soon to be ex-wife of a philanderer who is suing not just for divorce but for property damages as well. The case has loser written all over it and Cage is insisting they settle while Fish is convinced they can win it. Since Ally's indiscretion with Billy, Greg has been ignoring Ally's phone calls and spending more time in the company of other women. Ally feels terrible that a great guy seems to be getting away. Billy does not like the attention that Georgia is enjoying form the other men in the office since she changed her wardrobe appearance.

Brian asks Ally to move in with him, but she questions the entire relationship mostly because their sex life is lackluster. She turns to Renee and a new therapist, who has oddly taken over Tracy's office, for advice. The therapist is weirdly understanding of her problems. She eventually decides to break up with Brian. Then she learns the new therapist isn't really a therapist at all, but a lawyer. Sparks fly between them nonetheless. At the firm, Cage and Fish represent a woman who wants her six-year-marriage annulled because she suspects her husband married her for her money. The woman, who is unattractive, says she and her husband were always great friends and she believed he just had no interest in sex. However, after she catches him cheating on her with a model, she changes her mind about him.