Hank Palmer (Robert Downey Jr.) is a successful defense attorney living in Chicago who has been estranged from his family in a small town in Indiana for several years. His brother Glen (Vincent D'Onofrio) calls with news that their mother has died. As he leaves his home to fly to his family, it emerges that he is going through a divorce with his wife and a custody battle is under way for his young daughter. Hank flies to Carlinville, Indiana for the funeral. He reunites with his brothers Glen, an owner of a car tire shop, and Dale (Jeremy Strong), a mentally handicapped man with an obsession for making films. Hank sees his father, Judge Joseph Palmer (Robert Duvall), in his courtroom, presiding over a case.
After his wife's funeral, Joseph goes shopping while the brothers catch up with each other. The next morning Hank notices damage to his father's Cadillac Eldorado as he is preparing to leave. While on the plane to return home to Chicago, he is called by Glen who informs him that their father is being questioned by the police about a fatal hit and run. It turns out that blood was found on Joseph's car which matches that of the victim, Mark Blackwell, who the judge once sentenced to 30 days in jail and who then went on to kill a 16-year-old girl. The judge regrets this decision and it is later revealed that he gave a light sentence because Blackwell reminded him of Hank as a troubled teenager. Joseph is taken to court as the sole suspect.
Joseph is released from prison on compassionate parole, after serving seven months. He and Hank go fishing at the old watering hole. After recognizing Hank as the best lawyer he knows, Joseph suddenly dies in the boat. After the funeral, Hank notices the courtroom's flag is flying at half staff contrary to his father's expectations that his legacy would be tarnished if he were found guilty. Hank, his daughter, and many members of the community gather to pay their respects to the judge at Sam's diner. Hank leaves the diner early to go to the courthouse alone. He puts his father's hat on the bench and spins the judge's chair, while he stands contemplating. When the chair stops, it is facing him, as if to invite him to take his father's place.