In his design studio, the Penguin is conducting illicit business with Killer Croc, fencing a stolen diamond. He informs Croc that the item he stole is not a seller's market and therefore can only offer him $50,000 and nothing more. Killer Croc is outraged and claims that the diamond is worth at least ten times more than that. The Penguin justifies his reduced offer based on expenses entailing his business. At that time, Two-Face arrives and makes a sarcastic remark about the Penguin's duplicitous demeanor. The Penguin turns to him and says that he was able of securing a better price for his stolen goods. Killer Croc becomes even more infuriated and the Penguin tells him he can find himself another fence. Croc grudgingly takes his money and leaves with Two-Face. The Penguin cordially bids them goodbye and turns to his safe. As he stashes the diamond and a wad of money inside, he boasts of how he swindled Two-Face. Upon that, a deep voice surfaces, asking if there is no longer honor among thieves. The Penguin turns around to find a tall figure dressed in a long black robe, and wearing a ceremonial wig. The figure accuses the Penguin of being worse than a thief, for trafficking in stolen goods. The Penguin vouches for the legitimacy of his business, claiming to have no prior knowledge of the origins of said items, and therefore considering himself exempted from the law. The man proclaims himself as the Law and unsheathes a sword. He says that the Penguin is guilty and starts swinging at him. The Penguin runs for his life and calls out for his henchgirls, only to find them tied up and hanging from the ceiling. He then makes a run for the backdoor and tries to unlock it, while his pursuer sends a giant penguin model rolling towards him. The effigy runs over the Penguin, knocking him unconscious. The mysterious vigilante observes the Penguin trapped under the rubble and walks away.
Next morning, the Gotham Insider reports the attack to the Penguin, who is said to be in critical condition. While Killer Croc hears this with relish, Bruce is not pleased. Councilman J. Carroll Corcoran goes on record to publicly condone the actions of the vigilante whom he dubs "Judge," saying that justice must be served. Two-Face listens to this, while flipping his coin. Later on, by Gotham's bridge toll booths, two police officers bemoan about their assignment, and as they enter the pick up van, Killer Croc stows away underneath it. He commanders the moving van and throws the two policemen out. When he rejoices for it, the Judge appears atop the van and starts mauling an oversize gavel against the windshield. He smashes the window in and causes the van to flip over and collide. Croc lunges at the assailant, but the Judge dodges and hits him. He accuses Croc of murder, mayhem, and manslaughter, whilst bludgeoning him with the mallet. Croc climbs up to the top of the bridge, not realizing that the Judge out ran him. From afar, Batman is watching and takes off towards them. The Judge and Killer Croc struggle over the hammer but Croc loses balance and plummets to his death. The Judge announces that the court is adjourned, but Batman saves Croc inches before hitting the ground. The Judge disappears without a trace. In a private conference, Councilman Corcoran bestows the Judge with two diskettes containing police files that will help him in his cause, but not before noting that he cannot be connected to them. The Judge inquires the reason for his help, and Corcoran explains that he has gained popularity since he started endorsing his vigilantism and if Gordon has his hero, he also can have one. Finally, he states that the Judge's doings work out for everybody. The two men shake hands and Corcoran sneers with conspicuous glee. The next day, the Gotham Insider reports that the Judge neutralized the Riddler and his goons, when they laid siege to Gotham's Golden Quill brunch earlier that morning. Councilman Corcoran declares that he was well-informed about the Judge's attack and hints at Two-Face as the next target. Upon hearing this statement in a pub, Two-Face expresses his outrage by shooting the TV set. As he leaves, an undercover Batman takes off in his pursuit. In his hideout, Two-Face is contemplating to inflict some pain in Corcoran and the Judge, when Batman hits him by surprise. Holding him down, Batman tries to calm Two-Face, claiming he wanted to find him before the Judge did. As soon as Two-Face dismisses his help, every exit in his apartment is locked shut. The TV set turns on and a video recording of the Judge pronounces Two-Face's punishment — death by asphyxiation — and gas starts pouring down the air vent.bbTwo-Face quickly opens a concealed trapdoor, only to find that the secret escape hatch, which no one else supposedly knew about, has been shut down as well. Batman pulls Two-Face away from the gas and hurls an explosive batarang at the air escape, causing several explosions, thus setting them free. As Batman struggles to pull himself back up, Two-Face kicks him unconscious, and runs away.
Back in his office, Councilman Corcoran is on the phone with the Judge, who is expressing his aggravation over Batman's second interference and wants to deal with him. Corcoran tries to appease him, stating that he has a primary next week, and a fight between two "heroes" could not bode well for him. The Judge hangs up on him without responding. At that moment, Corcoran is visited by Batman, who inquires about the Judge's whereabouts. Corcoran is elusive and Batman declares he wants to apprehend him before he really kills someone. Corcoran dismisses his concerns and starts ranting about the "ineffective system" that keeps putting criminals back on the streets. He goes on about the will of the people, but Batman leaves before he finishes rambling.
In the underground parking lot, Corcoran walks to his car while rehearsing his speech, when he's intercepted by Two-Face. Corcoran starts backing up and is knocked out by one of Two-Face's goons. Inside a courtroom, Corcoran is tied to a chair and Two-Face interrogates him about the whereabouts of the Judge. Corcoran swears he doesn't know, so Two-Face decides to make an example out of him. He tosses his coin and it lands on his hand with the good heads up, but he then flips it over to the back of his left hand, making the bad heads looking up. He tells his goons to get on with it, and as they carry him away, Corcoran offers Two-Face kickback money to spare his life. Two-Face responds that he should have mentioned it sooner so that he could have flipped the coin on it. Corcoran is dragged away begging for his life. In the Batcave, Batman is examining the Judge's gavel he retrieved from the police impound, as Alfred comes in holding a service tray. On close examination, Batman ascertains that the mallet is actually the Marshal Award, a trophy bestowed annually by the Bar Association to a judge or attorney for excellence. When he pulls down a list of past winner, Alfred exclaims in shock upon recognizing one name.
Back at the court, Corcoran in blindfolded and tied to the base of the statue of Lady Justice. As Two-Face's thugs pull out their guns to murder him, Corcoran lures them with the money Two-Face had previously rejected. However, the goons are discouraged by the thought of betraying Two-Face. Suddenly, they see two magnetic cuffs being attached to their wrists, disarming and binding them together. When they try to run for the exit, the Judge is blocking their way out and draws his sword. He takes charge at the restrained thugs and pins them to the ground with a wooden adornment.
The two vigilantes duel.Corcoran, who by then had managed to take off his blindfold, goads the Judge to kill them as they sure were about to do him in. The Judge replies that the councilman is in no place to judge others, for he also is a transgressor of the law he swore to uphold. As the Judge prepares to execute Corcoran, he is disarmed by a batarang. Batman jumps in and is about to reveal the vigilante's identity, when the Judge hurls two magnetic cuffs at him. Batman is restrained and a fight ensues. Though even with his both hands bound, Batman is able to knock the Judge down. However, the Judge is not defeated and hurls yet another pair of cuffs at Batman's feet. While he reaches for his sword, Batman pulls out a grappling gun and reels himself up. The Judge jumps on his back and the two vigilantes struggle.
"Guilty... guilty... guilty..."However, Batman manages to shake him off and the Judge plummets to the ground. Batman takes the keys from his unconscious body to unlock the cuffs. Worried for his reputation, Corcoran pleads for Batman's help. Batman declares that it is worse than he thinks and then he unmasks the Judge. Corcoran is shocked to find out that the "hero" he adamantly endorsed was none other than Two-Face. As the police and reporters enter the building, Batman exits, leaving Corcoran lost for words.
The next day, Bruce is reading the newspapers about Corcoran's indictment and subsequent loss of primary. In the meanwhile, Alfred tries to make sense of what had happened. The two conclude that the Judge was a third personality, separated from the rest, that Harvey Dent had unknowingly created to fight crime. Moreover, that is why the Judge was aware of the secret underground passage only known to Two-Face. As they wonder about his fate, Two-Face is sitting in his Arkham cell, standing trial inside his mind. Once the Judge asks him how he pleads, Two-Face repeatedly declares himself guilty, with a terrified look on his face.