Back at Kate's office, Kate is taking precious time away from her busy schedule to console Rachel and assure her that she did nothing wrong. Kate says she's taking full responsibility and refunding Rachel's friend's money, which surprises Rachel, who's not completely unhappy with how things turned out. After all, she did feel something and took a chance on love. "Yeah, but he made you feel bad. That's not what we were going for," says Kate. "I can't imagine all the opportunities I've missed because I was afraid," she says. Kate smiles, knowing she doesn't have to return the $1,000.

Settlement conference. Kate tells her dad that she wants to talk to Julia. After warning her that it's a done deal, Jerrold agrees, so Kate pulls Julia aside. Sandy wants to know what Jerrold's up to, and he just comes back with, "Wouldn't you like to know." Kate tells Julia that although the settlement looks good, she's shortchanging herself. "You settled for a bad marriage, you settled for a lousy husband. You can't keep settling. You're worth more than this! But you're never going to know that unless you take a risk. But you gotta take a risk." Julia says okay, so Kate announces that there will be no settlement today. Sandy's all, that's very cute and all, sweetie, but you're not lead counsel, so stick it. "She is now," says Jerrold. If Sandy were drinking right now, you'd see the best spit-take! She can't believe Jerrold's going along with this, so he blah-blahs about how Kate is just looking out for the best interests of her client. "We'll see you in court," snaps Sandy, and she stomps on out of there. Perhaps lamenting losing some primo Knots Landing tail, Jerrold tells Kate this better be good.

For a guy who seemed so concerned about turning thirty, Michael certainly has no shame tearing into his birthday presents, which Amy notes with mock chagrin. "I have no shame," says Michael, as he shakes the hand of some dude whose gift he just opened. Who's next? It's Amy's gift -- it's on the table behind them, and it's quite tall. "What is it?" says the dude from a moment ago, like, HE'S ABOUT TO OPEN IT, SO WHY DON'T YOU SHUT IT, and I don't understand why this nobody was even given a line. Anyway, Michael lifts the box off the gift, which is a scale model of the Chrysler building, like, maybe the shrink can have a go at Amy's obsession with phallic symbols. Some other nobody comments that "they're so great together!" to Kate, who I'm sure gets it. Any more gifts? asks Michael, all greedy. Kate has one, but she warns that it's pretty small. Michael's thrilled because it's a signed Ernie Banks baseball card, which could have conceivably set Kate back a pretty penny, but he's Michael's all-time favourite player. Michael's blown away, since he doesn't remember ever telling her that. "You must have," says Kate, and meanwhile Amy starts looking awfully awkward. She starts wondering where the champagne is that she ordered, and wanders off to check on it.