Damages

Ellen and another of Patty's associates question Katie about the June 2002 weekend in Palm Beach, Florida when Gregory supposedly saw Frobisher. Katie recounts the night of partying with Greg, both of them drunk and high on coke. According to her, after they heard shots fired in the nightclub, they ran out into the parking lot where they saw Frobisher and another man enter a white stretch limousine. Later, Katie asks Greg if he can identify the man with Frobisher, but Greg begs to be left out of the case for the sake of his marriage.

At the reform school, Patty talks to her son Michael to see whether or not he is mad at her for having him kidnapped.

Meanwhile, Tom is worried about his career as Patty continues to underuse him after getting "fired" from the company. He just reports to Patty about the ongoing relationship between Katie and Greg. Tom also asks Patty to put in a good word for his daughter Megan whom he wishes to enroll into a prestigious music school. She dismisses him again and tells him to find another connection. Tom later approaches another lawyer Martin Cutler for the favor. Tom himself is offered a job at Cutler's firm.

David and Ellen begin to spend less and less time together as each one is busy with their professional lives. David attends to a favor from a patient's granddaughter, who later comes onto him.

Greg finally goes to Katie and admits that he knows the guy who was with Frobisher that night in Florida. He says that the guy's name is Luke Richards, an ex-assistant to Frobisher's broker, but continues to insist that he doesn't want to be involved in the case. Katie passes the second-hand information to Patty as her own. During her mock deposition, Katie is picked apart by Roger Castle, who was hired by Patty to measure the readiness of Katie. Details from her dark past, like her drug rehab and abortion, come out which causes her to lose it.

During her real deposition, Katie is prepared more than ever to face any query that is thrown at her. But when she is asked about seeing Luke Richards with Frobisher in the parking lot during the weekend in Florida, Fiske accuses her of being a liar and shows her a picture of Richards at an ATM in Atlantic City. Patty's case against Frobisher breaks apart as Fiske gloats with the recent triumph. Ellen later apologizes for Katie and their setback.

As it turns out, Greg and the people controlling him fed the false information to Katie so she can be discredited as a reliable witness in court.

In the meantime, Tom goes to Patty and tells her new information he has gathered about Greg -- that he owns stock from Frobisher's companies and that he was able to cash out before his stock took a plunge. Patty then reveals that she knew about Richards' ATM photo and about the false information all along and that she really wanted Fiske to think that they have the advantage, so Frobisher will drop the settlement deal with Patty's clients.

Katie confronts Greg about feeding her the false information and learns that he is not even married. Things begin to unravel for her as she also gets mad at Ellen for forcing her to be involved in the case. She soon leaves town, causing another fight between David and Ellen.

In the flash forwards, Katie identifies the body at the morgue as her brother David. She later sees Ellen for the first time in several months held at the police station.