While Mike is trying to deal with the fallout of Rachel having seen him with Tess, Harvey calls him in on a crisis. It seems a client's son ran over a dude on the way home from a party the night before, and didn't stick around. The lawyers convince Liam to turn himself in, and because he wasn't drinking and the victim was in black and fleeing the scene of the crime, it looks like the kid's going to get a slap on the wrist. Mike is taking this case more personally than usual, being a drunk-driver orphan and all, but Harvey lets him stay in on it anyway, against his better judgment. The young assistant D.A. offers them a sweet deal in exchange for being considered for a job at Pearson Hardman, Mike is able to offer the victim's family a bigger settlement than they asked for, and all is good.
Except it's not, because after the deal is done, Liam confesses that while he wasn't drinking at the time of the accident, he was stoned. Mike goes into a self-destructive conscience spiral, trying to mess up the deal with the D.A. by volunteering her this information (in violation of client privilege) and having unhappy conversations with Rachel and confronting the ambulance chaser who screwed him and his Grammy after his parents' deaths 20 years ago AND breaking up with Tess, because this all so wrong, man.
As for Louis, his new position as senior partner is proving to be a mixed bag. For one thing, Harvey still hates him. But he does get to hire a new associate, and Rachael Harris from Harvard not only sets him up with a sweetheart candidate but takes him to her freaky, freaky bed. Alas for Louis, his candidate never heard of Mike Ross, despite being in the same year he supposedly attended. So when Harvey finds out that the new girl is likely to expose Mike, he makes Jessica pull the plug on the hire, which gets Louis not only pissed off, but dumped.
Harvey actually comes off as the nice guy for once, as his plans to take Zoe (Jacinda from Real World: London, remember?) out on a date are scuttled by the fact that she's babysitting her niece. Harvey rises to the occasion and ends up being there for both of them, but when he goes for an encore Zoe breaks the news that her niece is going to end up being her responsibility when the girl's dad, Zoe's brother, is taken down by the big casino not long hence. So the only blonde Harvey ends up with is a new associate who used to be an assistant D.A. opposing him on the hit-and-run case
But at least Mike's still around to pass judgment on it all. In between tokes, that is.
At Mike's apartment, he smokes a joint when a sheet-clad Tess comes out to join him. He claims to be looking forward to getting back to work tomorrow, even though it's going to involve talking to Rachel, who you'll recall saw Tess similarly (un)dressed in Mike's apartment at the end of the summer finale. She has her own thing to dread, which is that her husband is also getting home tomorrow. So they retreat together into the refuge of their shared weed.
At the office the next morning. Harvey stands and watches Daniel Hardman's name getting scraped off of his office door. A thousand bucks per billable hour and he's just standing there. When he reaches his office, Donna is sitting at his desk with his messages including one from Zoe Lawford, calling Harvey back. Harvey plays it off like it's nothing, but she gets him to admit he was asking her out, to celebrate the defeat of Hardman. Point to Donna. Louis comes in to talk about some case and Harvey cuts him dead, apparently still peeved over all that business with Louis taking Hardman's side. Louis reminds him that he backed Harvey in the end, and Louis mimics the pansy-ass gesture Louis used to do so. So it looks like we're sticking with the standard operating procedure of treating Louis like shit.
Mike walks into Rachel's office to "rip the Band-Aid off," like Grammy always advised. She's pretty hurt, not to mention unimpressed by the way he just invoked his recently deceased one family member, and he apologizes lamely. She asks if Tess knows about being Mike's second choice that day after Rachel, and Mike tells Rachel that Tess is married, so her second-choice-ness is the least of her concerns. Just then Harvey comes along to call Mike in to help him with some crisis or other. Rachel's mood doesn't seem much improved.
Mike and Harvey show up at the chi-chi apartment of some client named Gillian. The woman's son, Liam admits to having hit someone on the drive home from a party the night before. Mike immediately (and rather sharply) asks Liam if he was drinking, and although Harvey snaps at him not to answer that, Liam denies any such thing. Harvey asks what happened to the guy he hit, but Liam doesn't have an answer for that. "He drove away," Harvey says. Yeah, you guys should probably do the same.