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A series of misunderstandings (like rat poison, pills, a shovel, and doctor's advice to "get rid of the old thing") causes a sick Fred to think that Cal is trying to kill him.
Cal's mother visits and seems to like Fred, that is until he leaves the room. It is revealed that she is a racist and does not approve of her son living with a black man. She then ends up not wanting to stay at Fred's overnight. Cal then tries to break the news to Fred, who tries to get her to change her mind. When it looks like there is no other hope for her, Fred tells her a story that hurt him when he was young. She does not take it to heart and then has Cal decide who he would rather side with. Cal then makes a decision.
With water dripping everywhere and the place falling apart, Fred decides that he wants to sell the house... that is until he learns that there are plans to build a freeway, either through a rich neighborhood or Fred's neighborhood. Worrying about their neighborhood, Fred and his neighbors plan on taking their case to the State Government. After a debate with the rich and them, Fred's persuasion hits and his side wins the case. Just after winning the case, an earthquake erupts, causing big damage to Fred's house and Fred saying "Earthquake! I got to dump this dump!"