Alicia navigates the finer points of English law when she tries a civil case in a British court via satellite and goes up against a queen's councilman (Eddie Izzard). In the case, a British businessman claims he was slandered by an author who wrote that he stole a fellow hiker's oxygen and left the stranded climber to die. Meanwhile, Peter asks Diane to submit to an audit before he will consider hiring her firm to represent cases for the state attorney's office.
Alicia, Will and his former lover (Lisa Edelstein) meet for a court-ordered mediation session in a hotel to settle a medical malpractice suit. Meanwhile, Eli and Diane disagree over how to handle a dairy company's public-relations disaster after their cheese apparently made kids at a school sick.
Alicia is forced to rely on testimony from convicted killer Colin Sweeney (Dylan Baker) when the key witness in a case involving a plane crash commits suicide, but he wants his freedom in return. Meanwhile, Eli tries to get Peter selected as the keynote speaker at a political convention.
Alicia defends a Taiwanese national accused of raping and murdering a young woman aboard a yacht during a drinking cruise. Meanwhile, Eli is approached by his ex-wife (Parker Posey) to vet her for a possible political campaign.
Alicia represents a man who is suing the government because he claims he was tortured while he was held captive in Afghanistan. The case gets more complicated when Alicia is ordered to appear before a Treasury Department officer to report on her client. Meanwhile, Peter begins digging into allegations that Will may have stolen money from a previous law firm; and Diane suspects Will and Alicia may be involved in a relationship.
Alicia tries to win a stay of execution for a guilty man because he has information that could keep another one of her clients from a murder conviction. Meanwhile, Eli races to get ahead of a client's potential scandal. Chris Matthews guest stars as himself.
A routine arbitration turns into a battle of wills between Alicia and Louis Canning (Michael J. Fox), but when Grace disappears it brings about an unexpected connection between the two. Meanwhile, Will asks Eli to look into the criminal investigation being brought against him.
A couple whose divorce was overseen by Lockhart/Gardner brings a multimillion dollar lawsuit against the firm. The pair accuse the firm of encouraging their breakup for financial gain. F. Murray Abraham guest stars.
Alicia defends a lawyer who refuses to reveal a client's identity to the government. The mystery client is a computer programmer who illegally created a new online currency. Meanwhile, Kalinda becomes trapped in a no-win situation.
Wendy Scott-Carr presents her evidence against Will to the grand jury; and when Alicia takes the stand, details of her relationship with Will are revealed. Meanwhile, Eli squares off against rival Stacie Hall.
Alicia defends venture capitalist Colin Sweeney on sexual-misconduct charges, which threaten to derail his attempt to regain control of his company. Meanwhile, Cary is faced with a moral dilemma when Peter orders him to enforce office policies.
The third season ends with Lockhart and Gardner facing bankruptcy as Louis Canning and Patti Nyholm join forces to sink the firm. Meanwhile, Alicia faces her conflicted feelings about Peter; and Kalinda's past catches up with her.