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In San Francisco, Captain Theodore Breakstone, the district legal officer of Com Twelve, wonders how to handle the Caine Mutiny. The case was a disaster and the investigation has made it worse. No legal officer will have a part in defending mutineers. Lieutenant Commander Jack Challee, who is to prosecute the case for the Navy, comes to Breakstone and exclaims that he has found a suitable defense: Barney Greenwald, a hotshot Jewish Lawyer from New York who joined the military as a fighter pilot when the war broke out. Breakstone finds Greenwald less than eager to take the case. Greenwald is convinced that he can get his clients off, but does not want the mutineers to walk free.
When Greenwald meets Maryk, he changes his opinion the case. Greenwald had expected a wimpy, self-satisfied businessman, but finds a dejected, blunt ex- fisherman. When Greenwald meets Keefer, he realizes that Keefer is to blame for the mutiny, for he is the complainer. Greenwald reveals that more than forty ships made it through the typhoon without floundering or changing course, which shakes Maryk. He and Greenwald begin to formulate a plan for the defense. Greenwald asks about the Caine's action after the mutiny. Queeg was detained for psychological review, but because of a desperate shortage of sweepers, the Caine continued on to Lingayeng Gulf. Queeg had not protested at Maryk's continued command of the ship, and Maryk performed admirably, sustaining a kamikaze strike and successfully piloting the ship back to port. Greenwald says they will plea not guilty to the charge of prejudice of good order and discipline (reduced from mutiny by Breakstone).
Willie flies home to end his relationship with May. He has decided to stop stringing her along. Willie thinks about how far he has come in his naval career, beginning as a scared ensign and becoming someone the crew looked up to as a battle-seasoned war hero. Willie was surprised to find that the investigation preceding the court martial was not grand, but made him feel like an insignificant, small part of an insignificant, small procedure. Willie is scared by the possibility of being convicted, and for the first time since his Princeton days thinks, "Mother will get me out of it."
Mrs. Keith meets Willie in the airport. She is surprised by Willie's thin body and jagged face. The drive home to the Manhasset house is silent, and Willie finds the house feels strangely unfamiliar. Willie tells his mother of his plan to dump May. After getting permission to see her that night, Willie calls May's old number, but finds she has moved to the Hotel Woodley. May and Willie go to a coffee shop. May tells Willie she is supporting the family through her singing career. She is also going to school at night and helping out in the store. She tries to impress Willie with the French and book-talk that she has picked up in school. Willie is shocked by the poverty of her apartment, and worried, for May is sick.
That night, Willie goes to see May sing at the Grotto Club, formerly the Tahiti club. May sings well and looks beautiful. Later, the couple kiss, but May breaks it off. After a few more bitter kisses, they break up. May knows exactly why Willie is breaking up with her, and tells him so. He cannot answer her accusations. Willie has progressed, but he is partly still a stuck-up Princeton boy.
On the first day of the court martial, Captain Queeg is examined by the judge advocate lieutenant Challee. Maryk almost falters in the opening minutes of the proceedings after hearing the solemn reading of the charges and the swearing-in of the military jury. Queeg also shakes Maryk. Spending time away from duty and in the sun in his Arizona home has completely erased the paranoid Queeg of the typhoon and replaced him with a dignified, well-spoken officer. Queeg answers the questions with clarity and sanity. He testifies that in the storm, Maryk's pride in his seamanship had doomed them. The rest of the examination establishes Queeg's experience, his perfect naval record, and his perfect sanity. In his cross-examination, Greenwald forces Queeg to recognize the two excellent fitness reports he gave Maryk, which contradict Queeg's statement that he had suspected Maryk from the start.
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