It was pretty sad. And I got the impression that he was kinda drunk. He semed really depressed. And Court was miserable, with good reason. Although, that was the night she kissed Jack, and Grace saved the day by interrupting Courtney's temper tantrum to make a random toast.
Another reason Peter probabley liked Grace. She's so selfless she just dives in head first.
But yeah, the P/C scene was sad. But good. Emmy, anyone?