Before they can resolve this, Jessica enters with the news that Alison's filing to dismiss. Harvey responds with the news that Mike is going to court for an emancipation. "From him?" Jessica asks, arching her eyebrows at Harvey. "I wish," Mike quips. "He doesn't need a court order for that," Harvey adds. After some more teasing, Jessica puts Alison's affidavit down on Harvey's desk for his signature. The world goes into slow motion for Mike as Harvey reaches for his pen, and licks the nib, prepares to sign... and then Mike spills coffee on the form. There's more teasing of Mike, and when Jessica leaves, none the wiser, Harvey knows something's up. "You ambushed me with a cup of coffee. You think I haven't seen Ronin?" Like that's such an unlikely assumption. Mike breaks the news that Donna was supposed to break herself long before now.
Harvey goes and finds Donna in the ladies' (you can tell because it's shot from the opposite angle from the men's) room and, after checking the stalls, demands to know what she was thinking, keeping the memo from him. Donna claims she was trying to protect him, but he says lying isn't protection, but a betrayal. She says he keeps things from her all the time. "That's because I'm your boss!" he retorts. She says maybe he shouldn't be any more and tells him to just fire her already. Classic defense mechanism. Harvey relents, and explains that her finding it is a good thing -- if he'd buried it, they wouldn't have it, so the fact that they do proves he didn't. This doesn't appear to be good news to Donna. Quite the contrary in fact, prompting a distressed Harvey to all but wail, "What did you do?" Donna sputters about Alison and the camera and finally admits that the memo is destroyed. Even now, Harvey angrily says he's not going to fire her. "I might kill you, but I'm not gonna fire you." He heads out of the bathroom, saying he's going to do what she should have done from the start.
Okay, I get that Donna's image of herself as supremely competent and all but infallible has been shaken to its bedrock foundations, but even in that state she had to understand that shredding the document would just make the situation worse. Especially with Mike all but blackmailing her, and especially considering her speech to Rachel in last season's finale about how there are some things you can't come back from.
Cut to Hardman's office (I'm glad he insisted on the taupe walls so I can distinguish it from Jessica's), where Harvey has just told Hardman, Jessica, and Alison what's what, and that he still wants to go to trial. Alison strongly advises the partners to cut a deal instead. Harvey reminds them that they're all supposed to be on the same team, and tells Alison that while she wants to lose small, he wants to win big. "She's the one who has to try the case," Hardman reminds them. Harvey insists that he never saw the memo, but Alison doesn't think he'll be able to convince a jury of that. Jessica tells her to set up the meeting to cut a deal. "And whatever you're thinking, I don't want to hear it," Jessica warns Harvey. Luckily for her the ads are on then.