Ally defends a man who broke into his old house to jump out of his old bedroom window. Harvey Hall believes he can fly using wings he made himself. The house owner allows him to jump from the roof, and Harvey accomplishes his life long dream of flying, at the cost of his own life. Meanwhile, Harriet Pumple tries to find a match for Elaine, Coretta, Richard and John. She matches Elaine with Victor, who would have dumped her if it wasn't for Ally asking him not to. But Harriet can't find a match for John, so the entire office sings "we have to get you a woman" for him. John is profoundly insulted.
10 year-old Maddie Harrington shows up on Ally's door saying she's her daughter. She's the result of a mixup on the egg bank Ally deposited her eggs ten years ago. Since Maddie's father died six months ago, she's been living with her aunt, who sings TV themes on nightclubs for a living. After a lot of talking, Maddie decides to stay in Boston with Ally on a trial basis until they resolve where she will stay. Meanwhile, Richard takes the case of a man who killed his wife after kicking her in the head when he mistook her for a soccer ball. John doesn't think he'll be able to win the case because he can't litigate, but Richard surprises him when he wins.
Ally is about to go on her 3rd date, a.k.a. the "sex date", with Victor. Everybody knows about it, but Ally is nervous because on the 2nd date the tension was so high they couldn't even kiss. Meanwhile, Ally is interviewing for new hires, and meets with big shot attorney Todd Merrick, who gets on her nerves. Ally questions if she's dating Victor to fit hers or Maddie's demands. They finally go out, and when they come home they find Maddie's nanny dead in front of the TV, ruining the rest of the date. At the firm, Richard assigns Nelle to a very important case opposite court devil Liza "Lolita" Bump, a bitchy, young and feared attorney. So feared that Richard has to get John Cage for the case. He's been working at a Mexican restaurant as a mariachi player, and is quickly intimidated by Lisa's actions on and off court. She keeps trying to seduce John in order to settle the wrongful dismissal case, and John feels he must bring "The Biscuit" back to defeat her once and for all. Meanwhile, Claire announces she's getting married, and Coretta suggests she signs a pre-nup. Lisa meets her fianc�e and decides to represent him in court.
Maddie keeps testing Ally for her patience and love, something that doesn't go through Ally's mind until Victor points it out. Ally, on the other hand, is being way too protective on Maddie, confronting her school principal, teacher and classmates. She decides to hire a nanny, but can't find one that is fits her standards (liking Moulin Rouge, for example), so she ends up hiring Victor, who has developed a very good bond with Maddie. As if she didn't have enough going on in her life, Ally is offered partnership on the firm now that John is gone. After a lot of consideration, Richard decided to ask her and change the firm's name from Cage & Fish to Fish & McBeal, which upsets Nelle, who thinks she should be the next partner, not Ally. After going through the firm's books, Ally discovers that they're losing money and have to fire someone to avoid problems. Since neither Richard nor John had the guts to fire anyone, Ally decides to do so. Meanwhile, Coretta and Raymond face each other in court on a case about a lawyer who was fired because she was dying from AIDS. The case deepens when her employee reveals that his own son died of AIDS and he's only trying to avoid the other partners from further suffering since two of his lawyers died on September 11th.
The judge forbids the lawyers to interfere on Claire's engagement, and her fianc�e decides to call the wedding off. Devastated, Claire goes to Ally for help. Ally is still shaken with the memory of Larry, and isn't sure of her feelings for Victor anymore. In the middle of that there's Todd, whom Ally turned down as an attorney, but who asked her out on a date. He gets on her nerves and they fight a lot. On their date, Ally confronts Victor and tries to pick a fight with him. John and Nelle try to settle upon their imminent lost in court, but Liza has now lowered her offer. John is furious and decides to take her down.
Ally decided that in order for the firm to get out of the financial crisis it's going through, someone will have to be let go. She chooses Jenny, who between all the lawyers of the firm had the least number of clients and experience. Glenn takes Jenny's dismissal offensively and decides to quit, taking all his clients with him. Ally accepts his resignation, but Victor convinces her to hire him back since the firm can't afford to lose any clients. Glenn and Jenny decide to start a new firm together and leave Cage, Fish & McBeal once and for all. Now the other lawyers will have to do extra work to make up for the loss. Among the changes Ally is making on the firm, she wants Nelle to be nicer and asks her to perform at the bar, something she has never done before. Afraid of embarrassing herself, Nelle goes to Ling for help. They decide to have backing vocals, a plan that backfires when the singer who was going to dub Nelle suddenly loses her voice and Elaine has Claire Otoms to replace her. That's right. Claire Otoms is back. This time she wants legal representation because she was fired for sexual harassment from her firm. As the case goes on, Richard starts to see the inner beauty of Claire and decides to hire her as an office assistant. Meanwhile, Ally also has problems at home when Maddie starts asking questions about sex and insists she and Victor demonstrate her what a french kiss is.
Ally is going to the Bermudas with Victor, and welcomes Liza as the firm's newest attorney. Nelle doesn't like that or the fact that she took John's office. Despite being her first day, Liza hires another lawyer, Wilson Jade, whom she was going to partner with on her own practice, hadn't she joined Cage, Fish & McBeal. Nelle and Wilson represent a woman who's suing her husband for sexual harassment, while John and Liza represent Nicole Naples, a woman who's legally married to two different men. Liza and John develop a great chemistry in court, and save Nicole from going to jail. John almost falls in love with Nicole, who's also interested in singing the mariachi with him. And back at the office, Claire is hot for Wilson, who makes an excellent settlement on the case with the help of Nelle (or should we call her Morgan, her real name, which was discovered by Liza � who's actually Debbie!)
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