John and Nelle defend her father who was fired from his job as a teacher because he claims he's Santa Claus, Ally feels threatened when Larry's ex comes to town. Richard and Ling lip synch at the office Christmas party.

Larry's ex-wife asks him for his permission to take their son to Canada, where she is moving. They argue over why can't one of them move closer to the other so their son can grow with his two parents around. Jamie asks Larry why can't they get back together and Larry says because she's not Ally. They kiss. Larry tells Ally, who overreacts about it until he explains her that Jamie is and will only be the mother of his son. They make up. Meanwhile, Ling's ex-fiancee comes to ask her if they still have a chance, but Ling doesn't want to destroy her girlfriend's happiness. Melanie is fired from her job for scaring the children and John takes it to court.