After a criminal named Sergei Czarsky has his court case thrown out because of a critical error Shawn made while investigating him, all of SBPD is furious with Shawn. When Internal Affairs makes it a point to hold SBPD accountable for their mistake, everyone's job is in jeopardy. Shawn plays it off like it's no big deal, but Gus and Henry see otherwise. Vick then places Shawn on suspension, and makes the difficult decision to fire Henry. As a result, Henry and Shawn have a huge falling out that subsequently causes Shawn to have a series of "It's A Wonderful Life"-type dream sequences in which Shawn sees what life would have been like for our characters had he never come back to Santa Barbara.