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Spencer asks Sarah for all his money back. Sarah is being sued by a client, and all this situation lets her in deep debts. JB finds a last client for his business, but turns out he's a cop and arrests JB. The officer tells JB he had lived in Sarah's apartment 20 years ago. The officer starts asking questions about Sarah to her friends until he finds out her last name is indeed Merrin - like him. He interrogates Sarah and confesses knowing her mom. He tells her he's her father.

Joss and Maguire have a deal that they sleep together when they want, but with no pressure, just sex. Later, he tells her that he is interested in someone else. Maguire and Sarah kiss outside the bar, but then she apologizes and tells him that she has a boyfriend in San Francisco. Maguire gets disappointed. Romy and J.B. try dating, realize they have little in common, but when they find out they're both lactose intolerant, they get together. Sarah gets a job as a decorator for one of Archer's rich friend, Mrs. Halloway, and is offered to live in their house. But she turns the job down, because she doesn't want anything handed to her as she had back in San Francisco. Sarah tells Bailey that she's decided to stay in New York.