Mike and Harvey are going through the case in Harvey's office. Mike has learned that the victim, Albert Chung, was all dressed in black at the time of the accident, almost as if he was trying to be invisible. Indeed, he had been tagging a nearby building and was fleeing the scene, which means he caused the accident himself. Harvey's impressed enough with Mike's detective work to tell him he would have made a good fake cop. Heh. He sends Mike off with this evidence to deliver to Katrina.
So he goes to Katrina to plead to a misdemeanor of leaving the scene. Katrina agrees to the deal, saying she's doing him a favor by keeping it out of trial, where anything could happen. What she wants in return is a shot at a job at Pearson Hardman. Mike reluctantly agrees.
Mike reports this to Harvey, who says that since Katrina already signed the deal, he doesn't have to do shit. After all, the last associate Harvey hired turned into such a pain in the ass that he's not in a rush to hire another one. Harvey tells Mike the next step: settle with the Chung family while they're still too sad to try to squeeze anyone for a bigger payout. Mike is struck by Harvey's callousness, telling the story about Nick Rinaldi, the dirty-shoed lawyer who came to settle with him and Grammy right after his own parents' death. With that in mind, he says he wants to be the one to handle the Chungs. Harvey authorizes Mike to go up to $100,000. He should probably be more specific.
In the file room, Mike encounters Rachel again and asks her to be discreet about his married bed-buddy. Already pissed off, Rachel is now even further offended that he thinks she'd tell anyone. Rachel angrily says she's had an affair too, with a married man the same age as her. "And I went after him. I am not the goody-goody you think I am. You have no idea what you passed on." She adds that what Mike is doing only ends one way. Maybe we should skip to that, then.
Mike is at the Chungs' apartment, delicately broaching the subject of the monetary settlement. The dead man's sister knows Albert was a loser who wasn't worth much, so she asks for a measly $20,000. But Mike, always the hardnosed negotiator, insists on giving them the full hundred grand.
Louis shows up at Sheila's hotel suite right on time, finding her draped in a kimono. "Punctuality's the best aphrodisiac," he smarms. Before they start, she asks who his front runner is for the associate job. He says Maria, which she knew was the only correct answer, and he asks her to help close her. She agrees to close the shit out of Maria, and he's going to close the shit out of her. Louis moves in for a kiss, but clarifies that they wouldn't be doing this if he'd hand-picked her. She says they would, but it would be different. And that's as far into this scene as I'm going, because from here it gets even more horrifying.