Fairly Legal opens the week with a familiar face. Judge David Nicastro (Gerald McRaney) is back. And still cranky. He assigns Kate to mediate an insurance dispute. A fisherman lost his hand while working. While Kate and the judge are talking, Justin walks into the courthouse. The judge leaves them after saying hello to Justin. There's awkward silence. Justin tells Kate that the divorce is final. Kate is thrilled when her phone rings. Leo lets her know that she has clients waiting. She tells Justin she has to run. He mutters that she's good at that. She whips back around and they have the same argument that they've been having since the first season. They argue about whether or not she was present in their marriage. She yells about his sleeping with another woman. He snaps that it wasn't as if they were happy. Kate looks like he stabbed her. She leaves.
The captain and the insurance attorney and Owen Maiken and his wife are in the conference room. Ben wants in on the case. To litigate, not mediate, of course. Kate shuts him out and talks to the parties. A crew member has come forward to say that Owen was high, and now the insurance company is not willing to pay. The captain storms out of mediation. Also, it turns out that the captain is Owen's dad.
Mr. Tinsley died and Mrs. Tinsley is the executrix of her husband's estate. Their children are trying to force her to sell his collection of classic cars. Lauren represents the widow and Mark Ellison (Tahmoh Penikett) represents the children. Judge Nicastro is presiding over the case, and he wants them to talk over the case. Mark makes it clear that he is interested in Lauren, but she completely shuts him out.
Later at lunch, the judge runs into Lauren and they wind up having lunch together. He tells her that his is a widower. He tells her that maybe it's time for her to date again. She tells him that she is too busy. Later she tells him that she hasn't started dating because she is afraid that if she does that some people will think she never loved Teddy. He tells her that she can't not date because of Kate.
Kate is trying to figure out what is going on. She goes to talk to the witness, Dave, who claimed that Owen was high at the time of the accident, but he is extremely hostile and lies that he knew Owen was high because Owen offered to share. Kate goes to a bar, a hangout for fishermen. Ben tags along because he really wants to poach Owen as a litigation client. When they get to the bar, Kate takes off her jacket and Ben nearly drools because Kate is showing a bit of cleavage and her arms. Kate gets a bottle of Patron tequila and two shot glasses. She sidles over to a fisherman, John. John tells her that everyone has a grudge against Owen. That Owen got someone killed last year. Which is when Dave shows up at the bar and a fight starts. Kate and Ben leave, but not until Ben gets decked in the mouth.
Kate is really annoyed by Ben, but then he tells her that the it was Owen's brother Zach who died. Kate goes to the captain to talk, but he tells her that he had Owen tested after Zach died, and he was high. He gives her the test results. Kate can't understand it, because she completely believes Owen.
Kate talks to Owen and realizes that he blames himself for Zach's death because Zach was green. He told him to stay below when a storm came up, but he didn't and then got swept overboard. He can't explain the drug test. Kate stares at the blood tests, when she has a eureka moment. She goes back to the docks and talks to John. She knows he swapped Zach and Owen's blood because the blood type on Owen's tests don't match. John didn't want to get fired, and so he switched the blood samples because he is the one who gave Zach the drugs.
That's another mediation saved. The captain and Owen reconcile. Ben is kind of bummed about the lost opportunity to sue the insurance company.
Lauren realizes that the judge was right and that she was clinging to Teddy's memory, and agrees to a date with Mark. Which is when she runs into Kate and Justin. Kate decides to talk to Justin because Judge Nicastro is really into fixing relationships. They seem on the way to being friends again at least. And then they run into Lauren and Mark (mini Battlestar Galatica reunion!). Awkward doesn't even begin to describe the situation, but as obnoxious as Kate is, she doesn't seem to think badly of Lauren. She's just completely thrown by the fact that Lauren's hair is down.
Oh, and Kate is still living with Lauren, so Fairly Legal might become even more of an Odd Couple situation.