Ally defends and befriends a young transvestite prostitute; Fish sues for the right to discuss his dead uncle¹s prejudices in a eulogy; and Cage ponders dating Ally.

Fish announces his uncle, Kevin Hanson, has died. Fish wants to mention Kevin¹s phobia of short people in his eulogy, but Kevin¹s minister won¹t allow it. Fish brings Billy to talk to the minister, but the minister steadfastly refuses to celebrate "bigotry" at a funeral. The next day, Billy and Fish tell a judge their case has nothing to do with protecting the civil rights of short people...it's about censorship. Later, Fish asks Whipper's advice about the case. She asks if he isn't using the lawsuit to avoid grieving for his uncle.

The next day, Billy and Fish try to consult with Cage about the eulogy case, but Cage is too "chagrined" over his blunder with Ally to talk. Billy and Fish plead their case to Judge Walworth. The judge is short, but he hates political correctness and rules in their favor.

The next day, Fish delivers Kevin's eulogy...but makes no mention of short people. Then a soloist begins to sing Randy Newman's, "Short People," and the choir joins in. Later Fish goes to the cemetery and says good-bye to his uncle.