It's Christmas break in Laguna Beach. Kristin has ruled the school, LC is leaving San Francisco and the drama is all around.Before completely unpacking after his return home, Stephen rings Kristin. The two have an awkward meeting on the beach. Unfortunately for Stephen, Kristin has moved on with Matt. Bored with the conversation going nowhere, Kristin walks away.Laguna's resident bad boy, Jason, has caused his own share of drama. He's dating Jessica, but it's not clear if he can be trusted. Kristin gives best friend Jessica a little reality check: Jason's probably cheating on her with Alex M. After all, says Kristin, it takes a heartbreaker to know one.At Lo's Christmas party, Kristin gloats over getting a call from her new beau, Matt. This is hard for Stephen to witness, and he moves in toward Kristin to try to get her attention. She shuns him. The next night, he takes LC on a romantic dinner date. Ironically, Kristin calls. Stephen and LC get a laugh out of that and ignore Kristin's call.Kristin and the girls party on the town in a stretch limo. True to Kristin's prediction, Jessica gets an upsetting call from Jason. Meanwhile, as the girls rock out in the limo and get silly, Stephen and LC chill out in the hot tub and get serious. No wonder Kristin warned us to expect twice the drama in Laguna Beach this time around.