Craig holds a press conference to make a pitch for "Boulevard Jeans," which he stole from Jennifer. Barbara interrupts to confront him, but Craig tells everyone that Barbara is backing the new Boulevard Jeans. Barbara insists that her intention was to pay Craig to leave Jennifer alone, not to help him steal Jennifer's business. Barbara leaves and rushes to Jennifer to tell her and Dusty that Craig is meeting with the press. Jennifer immediately leaves to publicly accuse Craig of stealing her business, and Barbara starts making plans to help Jennifer start over. Dusty becomes angry with Barbara and slings her over his shoulder to eject her from the office. Jennifer begins to confront Craig, but just as she starts to talk to the press, she becomes dizzy. Jennifer recovers and, in front of the cameras, tells Craig that he does not have her gift, and that he will never have anything from her again. Jennifer rushes back to the office and consults her calendar, then takes a pregnancy test. Dusty sees her sitting on the couch through the locked door.
Katie tells Henry that the new gym is not making money, so Henry reluctantly agrees to get a job. However, just as Henry makes his first call to a potential employer, Mike comes into the gym to work out, and Henry immediately hangs up the phone.
Attorney Michael Baldwin from Genoa City waits at the courthouse to help Keith get custody of JJ Carly, Jack, Keith, and Holden all offer to testify to Les' abusive nature, but Michael tells Carly that, since she is accused as an accessory to Julia's murder, her testimony could only hurt Keith's chance to become JJ's guardian. Les arrives and tells Holden, Jack and Keith that, when he wins, none of them will every see JJ again. All the men go into the courtroom, leaving Carly and JJ in the hall. JJ clutches Carly's hand. In the courtroom, Michael introduces evidence of Les' assaulting Julia. In a surprise move, Les' lawyer tells of Michael's past conviction of attempted murder and attempted rape. The judge declares this evidence inadmissible. Jack, Holden, and Keith all testify that both Julia and JJ were terrified of Les. Les' lawyer introduces evidence that Les was rehabilitated in prison and that he has a job waiting for him in Texas. The judge declares a recess after which JJ will testify. In the hall, Les asks for private time with JJ, and tells JJ that, if JJ says one thing against Les, Les will kill Jack - "I'll cut his throat." Jack walks up in time to hear the frightened JJ repeat after Les, "I love my daddy." In the courtroom JJ repeats obviously memorized phrases, "I love my dad. He treats me good. I want to live with him forever and ever." Jack shouts his objections.
At the police station, Lily recalls Keith's promise to find Julia's murder and asks Lucinda to keep Keith away from Luke. Jessica comes in and reports that the psychiatrist has found Lily completely sane and rational. Jessica sternly tells Lily that, if she pleads guilty to premeditated murder, she will face a mandatory life sentence with no chance of parole. Lily steadfastly insists that she will plead guilty, and Jessica leaves to report Lily's decision to the district attorney. Lucinda tells Lily that she is aware that Lily is protecting her son, but begs her not to abandon her daughters. Lily remains resolute, so Lucinda brings Natalie and Faith to see Lily.
Mike is at the gym beating the heck out of a defenseless punching bag. He is angry - angry at Jennifer, angry at Craig, and angry at himself because he cannot forget what happened with them. Katie talks to him and realizes he is speaking of his relationship in the past tense. She points out that they have all made mistakes, everybody has had just one "bad minute," and this is Jennifer's first. Mike leaves with his thoughts. When Henry returns to the gym, he is wearing a chauffeur's uniform for his new job. He finds Katie at the punching bag pretending it is her brother. Her mood changes when she sees Henry and is thrilled that he got the job. Katie tells him about her fantasy of having a romantic evening with a man in uniform....
Dusty convinces Jennifer to go back to the fashion show and prove to everyone that Craig is a thief and scam artist. She tries. However, when Craig appears, she becomes jumpy and obviously distracted. Dusty is angry when she announces that she must leave. When she returns to WorldWide offices, Dusty is very angry and tells her that she can't let Craig control her any more. He will not listen to anything she says and finally, Jennifer gives up and tells him that she had an appointment and that she is pregnant. Dusty offers his congratulations, but she tells him it isn't Mike's. Jennifer reacts with panic when she sees Dusty look over her shoulder - she knew without looking that Mike had just walked into the room and no doubt heard everything she said.
Jack continues to try to plead his case with the judge, who believes she has no other choice - under the law - than to return JJ to his father, Les. The room erupts in a fight when Keith tries to tell the judge that Les is violent. The judge has JJ leave the room. JJ is very upset, and tells Carly that the only reason he told the judge that he loved Les is that Les had threatened to kill Jack if JJ told the truth. When the bailiff comes to collect JJ again, Carly asks the very scared little boy if it would help if she went in with him. JJ - who seems not to hate Carly any more - nods gratefully. When JJ is seated on the witness stand again, the judge explains that because Les has done his time and has been under rehabilitation, she has no choice but to place JJ with his biological father. In a flash of sheer brilliance, Carly stands up and says "JJ, don't you have something to say to your Dad?" JJ looks up and straight at Jack and says "Yeah. Bye Dad." While Michael, Keith and Jack think that should change the judge's mind, Les refuses to listen and goes up to the stand and tries to get JJ to go with him - roughing him up in the process! Michael Baldwin stands up immediately and protests Les's actions. The judge asks him to form a motion - which he does. Michael moves that her former ruling should be stricken in light of what Les had just done. The judge agrees and custody of JJ is given to Keith, pending further investigation. Les is furious, but he had just been violent toward his son in front of a room full of people, and the judge wants to hear nothing more from him. Outside the courtroom, Keith asks to speak to Carly. She is skeptical as he asks for information about what she and Lily saw when they returned to Julia's apartment. Carly finally tells him that Lily told her Julia's body had been moved since she left. Keith asks Carly if she thinks Luke could have killed Julia - Carly does not answer. Clearly, Keith does not believe Lily killed his sister and he is determined to find out who did. Later, Michael credits Carly with winning the case by figuring out a way for JJ to talk to his "Dad." Carly says she's just glad that her "help" actually "helped" this time!
Lucinda has taken Lily's daughters to the police station in one last ditch effort to convince Lily that she cannot spend her lifetime in jail covering for Luke. While Lily is clearly upset when Holden takes the girls away, she still seems to have no intention of retracting her confession. But at her home, Keith surprises Luke by requesting his help in finding out who really killed Julia.
Keith went to Lily and Holden's house to try to get the truth out of Luke about what really happened to Julia. Keith told Luke that he would either have to trust him, or he would send his mother to jail. Luke seemed uneasy about trusting Keith, but finally broke down and told him that neither he nor Lily murdered Julia. Keith convinced Luke to go and see Lily in prison to try to convince her to tell the truth, and admit that she did not kill Julia. When Luke and Keith arrived at prison, Lily became extremely upset with Luke for trying to convince her to finally tell the truth about what really happened. Once Luke left Lily and Keith alone, Lily started to despair about the mess that the whole situation had become, leaving Keith to tell her that if they worked together, they could find Julia's real killer.
Jennifer realized that Mike did not hear her tell Dusty that she was pregnant with Craig's baby. Jennifer and Mike talk about how Craig stole her designs and then she sent him home. After Mike left, Dusty told Jennifer that she had to make up her mind about whether or not she wanted to keep her baby. Dusty told Jennifer that if she decided to keep the baby, she should act as if the baby was Mike's - no matter what.
Celia and Casey went to the gym for a free trial membership. Will was at the gym and hitting a punching bag. Alison arrived and was concerned about bruises on Will's hands. Two boys that were at the gym started to pick on Celia, which prompted Will to step in and be the hero. Alison told Will that she was proud of the way he handled the situation. Later, Will overheard Alison and Aaron talking about marriage with Katie and Henry. Will became visibly upset and left. Later, when Will was alone, one of the boys that had been picking on Celia earlier showed and things heated up pretty quickly.
Alison and Aaron were rationalizing why they shouldn't get married. They both blamed it on timing. They agreed to wait until they had saved some money and were really prepared for married life. Over a glass of wine, Ali and Aaron shared their thoughts about their wedding day (played out in dream sequence).
Tyson reappeared at the gym and started picking on Will. Will stood up to him but when Tyson called Will a psycho killer and said some nasty things about Alison, Will attacked him. A police officer stopped him. When Will wouldn't apologize the officer took them to the police station where Tyson wanted to press charges. Celia called Alison to come help Will out. Will freaked out when Alison showed up but Alison told him that she was just there to help. Will told Alison to mind her own business after she confronted him about losing his temper.
Dusty ran into Paul and told him that Sierra had given Dusty full control over Street Jeans. Dusty told Paul that they were going to help Jennifer out. Meanwhile, a Boulevard Jeans Promoter asked Craig about the summer line and wanted to see sketches. Craig skated around the issue and, after the promoter left, took the keys to the Street Jeans office and said he had to find some sketches. After he left, Dusty and Paul went into the office and started taking back what belonged to Jennifer by replacing her designs with Barbara's. They also realized that no one had changed the lock at BRO and went rushing out after Craig. Over at BRO, Barbara walked in and asked Craig what the hell he was doing there! Barbara caught Craig with a file folder and he refused to give it up. As he tried to leave, he was confronted by Paul and Dusty. Dusty escorted Craig out and Paul asked his mother what she was doing there. Barbara said she was there to help Jennifer out. Paul said he would help Jennifer and left. Later, Barbara found the pregnancy test. Craig went back to his office and discovered that Jennifer's sketches were gone.
Mike was trying to help Jennifer relax with a nice dinner but Jennifer was very tense due to the fact that she was hiding her pregnancy from Mike. Jennifer started to tell Mike but stopped after he started talking about losing Katie and how much he wanted to start fresh with her. Jennifer wasn't so sure and started to cry. Mike told her not to be scared and that he wouldn't leave her. After they made love, Jennifer kept thinking about what Dusty told her and made a decision to go to a family planning clinic.
At the police station, Tom tells Lily that simply recanting her confession is not going to get her out of jail and actually makes her look all the more guilty. Lily asks Tom to reopen the case of Julia's murder, and Tom said he would do so happily if he had any new evidence, but he doesn't. Given the present circumstances, he tells Lily it will be a long time before she gets to go home again.
In the squad room, Jack returns Julia's personal effects to Keith, but he wonders where her cell phone is. Jack says they never found it and that maybe Julia misplaced it before her death. Keith finds this unlikely, because he saw her using the phone the day she was killed. Jack says they do have a list of the calls made to and from Julia's cell phone on the day she died and that he'll go get the list to check it again, in case it shows where she might have left her cell phone. After he leaves, Keith goes in to talk to Lily, who tells him that she has painted herself into a corner and no one will listen to her now. Keith says he'll listen, and Lily says he's done enough, because he's the one who got Luke to say what really happened that night. She says that this is all because she hated Julia, and that now JJ will have to grow up without his mother, and maybe her children will, too, and that perhaps this is justice. She sobs, and Keith takes her into his arms; they have a "moment" before Jack walks in, saying he's found something they overlooked before on the phone call list: a phone number they haven't checked out, which shows a call was made at a time that was after Lily had left the apartment and was already with Carly. They call the number to see who Julia called and reach the Memorial Hospital pharmacy. The chief pharmacist, Mr. Shepard, says he remembers getting a call that evening, but he didn't realize he was talking to Julia at the time or he would have called the police when he heard about her murder on the news. He comes to the station and tells Jack, Keith, and Lily that when Julia called, she said she had a nasty bump on the head but ice packs weren't helping, and she wanted him to set aside some compresses for her to come pick up. She also asked him about drug interactions with ibuprofen. He says he tried to talk her into going to the ER to be checked out in case she had a concussion, but that she didn't want to do that, and then the tone of her voice changed, and he heard her say something like, "What are you doing here?" and the call was cut off. Jack thanks him and asks him to go give an official statement to one of the officers in the squad room. He tells Keith and Lily that if they can find the person who interrupted that call, they'll find Julia's killer.
Alison tries to get Katie to consider hiring Will in a part-time position at the gym, and despite Katie's misgivings, she seems to be talking her into it when Will walks up and tells Alison to stop trying to run his life. They have a heated discussion about Will's attitude, and Ali tells him to go ahead and be miserable if that's what he wants. Alison tells Will she knows he's really angry because he thinks she and Aaron are getting married, but she tells him they're not getting married, although they do love each other very much. She just wants Will to be happy, and he tells her he gets angry easily when other people in his life try to tell him what he should do. But he knows that Alison is right, and he tells her he'll talk to Katie about the job, and thanks her for caring. She kisses him on the cheek and walks away.
Craig goes to Street Jeans and tries to harass Dusty, telling him he knows Dusty substituted Barbara's sketches for Jennifer's new designs. Dusty says he doesn't know what Craig is talking about, but Craig insists he wants what belongs to him --- Jennifer's latest designs for Street Jeans. Dusty tells Craig he can take them to court if he thinks he owns the rights to those designs. Craig says he wants 5 minutes of Jennifer's time to straighten things out, but Dusty says it's not happening. Craig says he's noticed that Jennifer hasn't seemed to be acting like herself lately and worries that something else is wrong with her, and he wonders why all the men in Jennifer's life are closing rank around her (her father, brother, Dusty, and Mike) and fighting imaginary battles for her.
Jennifer, who's having car trouble, calls for a limo to take her to her appointment at the family planning clinic. Mike overhears the call and tells her he'll happily give her a ride. She insists that she has to stop depending on Mike for everything and can take the limo so that Mike can go to his own meeting with a building inspector. Then Henry comes to the door, in his driver's uniform, and tells Jennifer he's her driver for the day. Jennifer makes him drop her a block away from her destination, giving him a $100 tip and saying she has a private meeting regarding Street Jeans, but Henry doesn't believe it and later goes to the address he was given and sees that it's the family planning clinic. He then goes to the gym and tells Katie about all of this, saying, "There must be a little Kasnoff in the oven." Katie's not so sure that it's Mike's baby, and Henry realizes it could be Craig's. He thinks they should go snooping around, but Katie tells him they have to stay out of it, but that she hopes that if there's any chance the baby is Mike's and Jennifer is at the clinic to have an abortion, that she's at least discussed it with Mike first, because he deserves that much.
Barbara finds Paul at the Lakeview and tells him about finding the pregnancy test in Jennifer's cosmetics bag after she threw the bag at Craig, and she says that she sees a baby as the miracle that might reunite the family. Barbara thinks that once Jennifer has experienced a mother's love, she'll understand why Barbara has done some of the things she's done in the past. Paul is disdainful of the entire idea, but Barbara tells him not to be so snarky. She leaves and buys a present for Mike and Jennifer and takes it to the cottage, where she finds Mike, alone. She tells him how thrilled she is at their news. He has no idea what she's talking about, but he opens the present she's brought and sees that it's a baby blanket. Barbara congratulates him, but he insists that "there's no way Jennifer's pregnant." Barbara realizes Jennifer hasn't said anything to Mike yet about the pregnancy test, and she apologizes for having ruined her surprise; Mike continues to insist that Barbara is wrong and asks her to leave. After she leaves, he goes to call Jennifer and finds the ad for the family planning clinic. Barbara returns to the Lakeview and tells Paul she's ruined everything by trying to give Mike a baby present when Mike apparently doesn't know yet that there is a baby. She says she'll call Jennifer to try to straighten it out, but Paul tells her to stop interfering.
At the family planning clinic, Jennifer asks if there's any way she can terminate the pregnancy today; the registrar tells her she'll have to have a counseling session first, but that perhaps it can be arranged. In the waiting room, Jennifer watches a mother with her 2-year-old daughter and sees how much the woman enjoys being a mom. She finds out the woman is there for a prenatal checkup because she's expecting her second child, and the woman regales Jennifer with her experiences of the wonderful world of motherhood. However, when the registrar calls Jennifer for her appointment, she still asks if it's possible for her to have "the procedure" today, and before the woman can answer, Mike walks into the clinic. He looks at Jennifer and asks, "Are you really pregnant?"