After Jimmy McGill broke into his brother Chuck's house to destroy an incriminating cassette tape, he was arrested and charged for his actions. Because all of the prosecutors in the Albuquerque DA's office knew Jimmy from his career as a public defender, they were "conflicted out" of the case while Hay was brought in to confront Jimmy in court.
Hay visited Chuck to discuss the case, explaining that she would hold Jimmy to a higher standard as a lawyer and treat him accordingly. At Chuck's behest, Hay offered Jimmy a Pre Prosecution Diversion (PPD) agreement in which he would avoid jail time in exchange to confessing to the break-in and submitting that confession to the New Mexico Bar Association.("Sunk Costs")
Jimmy and Chuck, represented by their respective lawyers Kim Wexler and Howard Hamlin, met with Hay to mediate on the restitution owed by Jimmy and go over the conditions of the PPD. Before the PPD is finalized, Hay notes an apparent lack of remorse from Jimmy and insists that he apologize to Chuck for his actions. Jimmy reluctantly does so.("Sabrosito")