While at the Athletic Club, Holden and Lucinda try to think of a plan to get Luke out of Damian's clutches, in the police station Damian works on Luke to try to persuade him to come to Malta. After Holden leaves Lucinda, Damian and Luke arrive at Lakeside. When Lucinda confronts Damian about his manipulation of Luke, Luke jumps to Damian's defense before he stalks out. Damian smirks at Lucinda as he follows Luke out the door.
When Carly returns to the bar to search for her lost cell phone, Simon finds her and offers her a legitimate job. Simon has bought an old apartment building which he intends to renovate, and he asks Carly to design a reception area for the building. Carly accepts the job, but goes directly to break the news to Katie and Mike that she will be working with Simon.
Casey calls Margo from the country club to tell her that he has discovered Lia's body in the shower. Casey tells Margo that he sat in the car and listened to a playlist of 8 songs before he went back in the unlocked door and found Lia stabbed to death. Dallas is the police inspector in charge of the case, and Margo tells him to find the butcher knife that Maddie used to vandalize Lia's car. Margo arrives to question Maddie, not knowing that Maddie has been out all night without an explanation. When Margo asks Maddie where she was the night before, Maddie doesn't answer at first, but she remembers watching Lia and Casey in the country club locker room. In front of Eve and Henry, Maddie lies and tells Margo that she was there in the hotel room all night.
Katie tells Carly she can never, ever work for Simon. Carly assures her she can handle the con man. Mike urges Katie to let it go. Carly tells Simon she's changed her mind about the job, but he convinces her it would be fun Ė and when was the last time Carly actually had any fun? So, for kicks, they break into the building Simon just bought. The cops bust them. Henry lies and confirms that he was with Maddie all night, so she couldn't have killed Lia. Margo tells Tom she doesn't believe it. Maddie admits to Henry and Eve that she doesn't remember where she was. Casey comes to see her but Henry says Maddie asked him to leave. Later, he confesses to Eve that Maddie didn't say anything Ė because she took off. At the station, Margo learns that two knives are missing from Crash. One is the weapon Maddie used on Lia's car, and the other is unaccounted for. Meanwhile, Maddie is at the bridge, where Jade sees her drop something into the water. Maddie warns Jade to stay out of her business. Dusty informs Lucinda that he wants to dissolve Street Jeans. He tries to sooth a fussy Johnny. Lucy volunteers to help. Dusty is hostile and leaves. Lucy sobs to Lucinda that he hates her.
Celebrating her freedom, Emily, Daniel and Susan head to the Lakeview after bowling. Daniel tells his mom he is glad she is home.
Jade is at the bridge looking for whatever Maddie has thrown in the water when Gwen comes up. Jade expresses her suspicions to Gwen who is troubled by her own issues. Gwen tells Jade that her and Will had an argument about her and the hug Maddie spied. Will arrives to tell them he found a house. All three head off to see the new place, which is the house Mike and Jen shared when they were married. While there, Jade goes off into the back room and comes back with a huge vase of flowers which Will put there to surprise his wife. Jade tells Gwen she is happy for them and hugs Gwen as Will looks on uneasily. Jade leaves and Gwen and Will make love while Jade peers through the window.
Paul tracks Meg down at the Snyder barn. Meg says that she doesn't want to be a part of his plans to destroy Emily. Paul acknowledges that he knows he will never be granted full custody of the baby but would like to go for a shared arrangement. He then gets down on bended knee and proposes to Meg who tells him to get up. The debate how the future will be with Emily coming between them. She tells Paul she isn't saying yes or no, but he needs to fix the situation before they can make any plans. Paul leaves and heads straight to the Lakeview where he sees Emily and family having a bonding moment. As she places Daniel's hand on her belly she turns and sees Paul watching them.
Also at the Lakeview, Damian and Luke arrive for lunch when Kevin shows up and blasts Luke for ditching them at the mill. He tells Luke he is pathetic and, as Damian overhears, asks him why he wanted a second chance "to ruin" his life." "You're a freak" he spits before he walks away. Upset, Luke tells Damian he is ready to leave, right away, when Luke's phone rings. Lucinda tells him to come to the hospital right away, it's Lily.
Dr. Bob tells Lucinda and Holden that the baby has turned back around to breech and is not doing well. Lily's blood pressure is rising and they need to do a C-section right away, which could be dangerous to Lily. Holden asks if Bob is asking if he is suppose to choose between his child and his wife and Bob tells him yes, he must. He decides that Lily would want them to go ahead with surgery and as he tells comatose Lily his decision Bob and Lucy arrive ready to go to the OR. Luke arrives to the hospital and while getting a drink for his grandmother, Lucinda tells Damian to leave. Luke and Holden both return to the waiting area where he tries to comfort his dad just as Bob arrives to tell them all went well and the baby is doing fine. Holden leaves and returns with the baby, a boy, who he hands over to the big brother.
Drunk, Carly and Simon decide to check pick the lock as Simon says he forgot the key at the hotel. Upon entering a cop shows up and says the owner just called in a trespassing complaint. Simon comes clean that he doesn't actually own the building yet and they are taken to the precinct. Jack comes in and reminds her that she is on probation and could wind up in prison. Carly tells Jack to butt out and stop watching her, she isn't his problem. Jack asks if she is going to start working at the Galaxy again but Carly tells him about her deal with Simon, much to Jacks disappointment. He leaves and as she tries to find someone to take the kids for the night, Jack and Simon come back to remove the cuffs as Simon has gotten the charges dropped. The two talk about their new endeavor and leave arm-in-arm as Jack looks on.
Today's episode featured the song "Left Outside Alone" by Anastacia.
On a morning walk, Emily spots Meg on the bridge, looking perplexed. She questions Meg of her emotions, thinking her mind is on Paul but Meg replies she is sad because of her, and the drama she has gotten involved in with Paul and Emily's child. Meg accuses her of intentionally getting pregnant with Paul to spoil her relationship with him, but Emily claims it wasn't planned and she wants nothing to do with Paul. Emily tries to get Meg to spill out information about her and Paul's relationship, but Meg reveals nothing. With that, Emily leaves a distraught Meg alone on the bridge. Soon, Barbara meets Meg. She knows of Meg's rejection of Paul's proposal and advises her not to give up on their relationship over Emily. Meanwhile, Emily is at the Lakeview and meets Susan for their spa appointment. Susan is upset because the appointment was canceled due t o scheduling conflicts but she doesn't know that Paul, upon overhearing this, pulled some strings and got Emily her appointment. When Paul tells the two Susan becomes very angry and doesn't buy that Paul did this as a peace offering. On the contrary, Emily thanks Paul, hopeful that somehow the two will be able to share custody once the baby is born.
At Oakdale Memorial, Holden and Luke grow closer with the new baby boy. Holden apologizes to Luke for not being there for him when he needed it and asks him to come home and be with the girls and the baby. Luke agrees and calls Damian and tells him he cannot go to Malta. When Damian arrives at the hospital, Luke tells him he wants to stay with Holden and be with his family. Surprisingly, Damian allows Luke to stay. Just as he is about to leave, Damian drops a bottle of pills. Damian claims the pills are for allergies but Luke is not so convinced and asks Lucy about the pills. Lucy tells him that they are hormone drugs, a last resort for someone who is very ill.
After a night of lovemaking, Will and Gwen awake to a knock on the door of their new home. They are surprised when Jade enters with a newspaper of Lia's death on the front page. No suspects were named, but Jade accuses Maddie of the murder, claiming that the stab wounds on Lia matched Maddie's slashes on Lia's car. She also admits to the couple that she saw Maddie toss something over the bridge into the water last night and that Maddie freaked out when she confronted her. Gwen is in disbelief; she cannot believe Maddie is capable of doing such a thing. But Will sides with Jade, knowing firsthand and alluding to his own past situation with Rose that innocent people can do horrible crimes. The three decide to find Casey and just before leaving, Gwen apologizes to Will for being insensitive. She asks Will to always tell her if something is bothering him an d he agrees. The two share a hug with Jade looking on.
At Java, Lia's closest friends are shocked about her death. They believe that Maddie killed her, but Casey adamantly tells them Maddie could never commit murder. Lia's friends explain to Casey their plans of a memorial service at Crash honoring Lia and ask if Casey would be there and provide the music. Casey agrees. He tells them he is going to see Maddie but Dallas overhears and warns him to follow his mother's orders and steer clear of Maddie, but that just makes Casey even more angry and certain that the police think Maddie is a suspect. Will, Gwen and Jade all arrive at Java having heard the news. From friend to friend Will consoles Casey. Jade, who just saw Dallas leave, tells Gwen she plans on going to the police about her suspicions. Gwen tries to talk her out of it, but Jade is afraid if she doesn't go to the police someone else will be victim to Lia' s fate.
Meanwhile, Eve, Henry and Maddie try to enjoy breakfast together but things get heated when Henry brings up Maddie seeking treatment for her problems from a psychiatrist. Maddie insists that she is fine and the two begin to argue and when Eve tries to break it up by telling Henry, "This isn't the way...", Maddie thinks Henry and Eve believe she killed Lia. The two reassure her that they do not think she was murderer, and Maddie asks them to forget about Chicago and what happened last night. Nate spots her and pulls her aside, telling her about Lia and asks Maddie to go to her memorial service. Maddie refuses. She then goes back to Nate and changes her mind, agreeing to go to Lia's memorial service at Crash.
At the hospital, Dusty finds Holden and gives him a teddy bear for his new baby boy, saying it's from Johnny. Holden talks about how tough it is to do this alone, saying he knows that Dusty understands and telling Dusty that whenever he feels like he's in a hole, to focus on Johnny. Dusty confesses that he's afraid he won't be the father Johnny needs; Holden tells him instead of thinking that, he should concentrate on letting Johnny be the son Dusty needs. Dusty leaves and goes to the cemetery, where he overhears Lucy speaking to Jennifer at her grave, apologizing for having made the mistake of letting Jennifer leave the hospital against medical advice. Lucy offers up a prayer for Jennifer, and when she turns and sees Dusty, she tells him that she'd seen him with Holden at the hospital and started thinking about Johnny and Jennifer and felt drawn to come to the cemetery. Dusty says, "Yeah, I know --- it's rough." Lucy tells Dusty to take care, then she leaves.
Luke meets Damian at Java for coffee and tells him he found out from Lucy that the pills Damian is taking aren't for allergies but for people who are seriously ill. Damian brushes that off by saying that "no one lives forever, but fathers live on in their sons," and he tells Luke that's the reason he came to Oakdale: so he and Luke could get to know each other again and to gain Luke's respect and love. Luke asks how long the doctors said Damian has to live, and he says they didn't tell him and he doesn't want to know. When Luke tells him he wants to go back to Malta with him, Damian says no, because he should be with Holden and Lily and the kids, but Luke says Holden has lots of family to support him, and Damian's got no one but Luke.
Simon and Carly look over plans at the Lakeview, and he tells her he has a blind bid out for structural repairs to the property but he'll give Carly a "blank check" in terms of her decorating budget because he puts his money in things he's interested in. He realizes he's left the repair bids upstairs, so he goes up to get them. Katie rushes over and tells Carly she needs to know what Simon is planning with regard to trying to break up her marriage to Mike. Carly tries to assure Katie that Simon hasn't got any such plans, saying Simon thinks of Katie as "the one that got away." Katie leaves but runs into Simon in the lobby; she accuses him of using Carly for "nefarious purposes," and Simon is amused by her choice of words, saying she's been reading too many trashy novels, then correcting himself to say he's heard that she's actually written such a novel, which Katie points out is a bestseller. He tells Katie that he's moved on with his life, and he suggests she do the same, then he returns to Carly's table. Simon gives Carly a check for her retainer, then he asks her to open the sealed envelope that holds the winning bid for his property repairs. Katie goes back home, where she rants about Simon to Mike some more, but Mike suggests that she "stop worrying about Simon and start focusing on us." He tells her that he has a plan to take care of Simon, and before she can make him tell her what it is, Simon and Carly arrive at the house, with Simon waving a piece of paper around and asking Mike if this is some kind of joke. Mike explains to Katie that he put in a bid on Simon's job, and he asks Simon, "Do I get the job or not?"
At Crash, Casey prepares for the memorial for Lia and asks Gwen to sing. Gwen is uncomfortable with the idea because she didn't like Lia, but she eventually agrees. At the Lakeview, Maddie runs into Henry, who asks her why she's dressed up; when she tells him she's going to Lia's memorial, he tries to talk her out of it, but Nate arrives to pick her up, and Henry ultimately lets her go. Eve shows up a few minutes later and isn't happy to hear that Henry let Maddie leave. Maddie and Nate arrive at Crash, where Lia's friend Ann immediately accuses Maddie of murdering Lia. Nate and Casey separate the two girls, and Casey tries to get Maddie to open up to him. She admits that people want her to see a therapist and that the idea scares her, because she doesn't know what might come out in the open if she begins to talk about everything, but then Will interrupts, telling Casey that Gwen needs a sound check, and Nate comes back and offers to take Maddie outside for a breath of fresh air. Seeing Nate acting possessive with Maddie, Casey turns to leave with Will, and Maddie goes outside with Nate. Will finds Gwen and tells her the memorial is too much for him to handle right now, and Gwen agrees that it's a good idea for him to go home. On his way out, Will encounters Jade, who has just received news about the birth of Lily's baby boy; Jade is upset that no one called her to tell her about this, but Will points out that she isn't family and suggests that if she wants to see Lily and the baby, now is a good time to go since she didn't know Lia at all. Will leaves, and Jade leaves immediately thereafter. Maddie and Nate return to the entrance to Crash, but when Nate tells Maddie that he's wanted to date her for a long time and then kisses her, Maddie has another flashback to her sexual assault and pushes Nate away. Nate tells her maybe she's psycho after all, like everyone else is saying, and Maddie runs off. Inside, Gwen stands up to sing and says this is "for Lia, and everyone who's lost before their time." As she sings, Nate, who is outside still, thinks he hears Maddie returning, but when he hears a noise behind him and turns around, he is attacked by the knife-wielding murderer.