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Meg Fairfield (Billie Burke) is set to marry Gray Meredith (Paul Cavanagh), pending a divorce from her first husband, Hilary (John Barrymore), who has spent nearly 20 years in an insane asylum. On Christmas morning, while Meg and Gray are attending church, Hilary returns home, having snapped out of his illness. He is met by his daughter, Sydney (Katharine Hepburn), who is worried she will inherit his mental problems. The Fairfields must decide how Hilary's arrival will change their plans.