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Season 2In the season premiere, founder Daniel Hardman (David Costabile) returns to the firm, and Jessica and Harvey fear he wishes to return to his former position as managing partner. Because of this, Jessica allows Mike to continue working, despite discovering his secret. Meanwhile, Jenny confronts Mike about his feelings for Rachel, and when Mike hesitates in his response, Jenny breaks up with him. At the firm, Travis Tanner (Eric Close) accuses Harvey of burying evidence and is determined to have Harvey disbarred. Donna learns that she signed in the document and then lost it; she panics and destroys the document. She is fired by Jessica shortly after. Hardman is able to blackmail Tanner into dropping Harvey's disbarment from the settlement, and Hardman's decision to settle or Jessica's decision to go to trial is put to vote. When the partners are evenly divided on the issue, Harvey, who has the deciding vote, realizes the trial will jeopardize everyone at the firm and votes to settle, unwillingly siding with Hardman over Jessica so the firm can move past the lawsuit. This causes Hardman to call a partner vote and challenge Jessica for the position of managing partner. Soon after, Hardman promotes Louis to senior partner, and both Harvey and Jessica fail to definitively win Louis' support. Hardman becomes managing partner, but it is short lived as Mike and Harvey discover that Hardman forged and planted the document that Harvey and Donna supposedly buried. He is voted out of the firm, and Jessica regains the managing partner position. Immediately after his grandmother's death, Mike tries to start a relationship with Rachel, but she is reluctant. Mike begins a small romantic entanglement with his first love and childhood friend Tess (Elisabeth Hower) who was in town for the funeral, only to be discovered by Rachel, who has just decided that she was willing to have a relationship with him. A week after the dust settles from Hardman Incident, Mike tries to repair his relationship with Rachel, a new case arises that hits home for Mike. He has to deal with the struggles of being the lawyer that defends a hit and run case, one that is all too similar to his childhood experience of losing his own parents. Louis Litt, relishing his new Senior Partner title, takes it upon himself to hire his own first year associate, who just may poke some holes in Mike's story about his time at Harvard. Harvey realizes that Louis's hire could expose Mike and goes to Jessica. Jessica then stops Louis from hiring the associate, giving the excuse of a "hiring freeze." Hardman then returns to battle with his old firm, working as a contract lawyer for Rachel's father, the famous Robert Zane. He strains Jessica's already low resources even further as she and Harvey are forced to try multiple gender discrimination suits in different locations. Scottie returns after stealing some of the firm's gender lawsuits. Eventually Harvey convinces Jessica and Scottie that both Scottie's firm and Pearson firm should jointly fight the the 45 cases of discrimination suits against Folsom Foods. In the end Jessica starts to accept a possible offer to merge Pearson with Scottie's firm based in the UK. Doing so would allow Jessica to finally end Daniel's attack as the British partner threatened to reveal Daniel's past, as it would not be a break of his contract with Jessica, because by law you must hand over financial documents to possible mergers. Harvey, wanting to become a named partner, becomes angry at the news, as he wanted to earn the position by merit and not through extenuating circumstances.