Brooke accuses Taylor of cheating on Ridge. Taylor claims that Hector was just trying to be a friend. Meanwhile, Hector confesses to Brooke that he loves Taylor. Brooke becomes upset and storms off. Taylor makes Hector leave. Later, Taylor asks Brooke not to tell Ridge, that she will tell him herself. Brooke is extremely upset by the entire situation. Jackie goes to help out at Nick and Bridget's house. She questions Nick about what his life would have been like if had chosen Brooke. Thorne and Darla discuss Taylor and Ridge. Thorne sticks up for Taylor and claims that she would not give in to Hector's advances, but Darla is hesitant to believe this.
At home, Brooke recalled Stephanie's remarks about how perfect Taylor is. Brooke got a sense of satisfaction after recalling that she had seen Taylor and Hector together in Taylor's bedroom. Taylor arrived at Brooke's to find out if Brooke intended to tell Ridge about seeing her and Hector on New Year's Eve. Brooke could not think of a reason to be charitable to Taylor. Brooke reminded Taylor how badly she and Stephanie had treated Brooke; why should Brooke now grant a request from Taylor to not go to Ridge with what she had observed? Brooke reminded Taylor that she came home and wrecked hers and Ridge's marriage and made her children have to live without their father.
Meanwhile Dante visited Felicia. He didn't know that she is sill. Felicia was happy to talk with someone who wouldn't be devastated by her death. Felicia told Dante that she is happy that Bridget and Nick will be bringing up her child. Felicia told Dante that Nick was ecstatic over finding out that Dominick is his child.
Darla went to talk to Hector at the fire station. She apologized to him for encouraging him to go after a married woman. Hector told Darla he was with Taylor on New Year's Eve and that everyone would find out because Brooke was there and found them together. Hector was hopeful that once Ridge finds out, it might free Taylor for a better life with him. He admitted to Darla that he is very in love with Taylor and intends to pursue her fully.
Back at Brooke's, Taylor begged Brooke not to tell Ridge what she saw-besides, Brooke is incorrect in thinking that she is having an affair with Hector. Taylor tried to tell Brooke that she was getting ready for bed after she thought Hector left, then he came upstairs, that is when Brooke saw them. Taylor figured that Brooke would be seeking revenge for Ridge choosing her over Brooke. Taylor begged relentlessly to Brooke to no avail. Brooke appeared to be intent on telling Ridge what she saw, no matter what Taylor did or said.
Brooke visits Nick and tells him about Hector and Taylor. She asks his advice on what she should do. Nick says that Taylor is accountable for her actions, and wonders why Brooke cares so much. Taylor and Stephanie discuss how much Taylor misses Ridge. Taylor confides in Stephanie about Hector, and what happened on New Year's Eve. Stephanie is extremely shocked. Thorne, Darla, and Sally are interviewing candidates to become the new receptionist at Forrester. They interview three people, and none of them are right for the job. Thorne then offers the job to Sally.
Stephanie spent the better part of a visit with Taylor warning her that it would not be in the best interest of her marriage to tell Ridge about her past indiscretions with James and now Hector. Stephanie tells her that she knows her son well enough to know that he would not accept any reason for her unfaithfulness, and it will be the beginning of a marriage being destroyed, that doesn't have to be. She warns Taylor to forget about what happened so long ago, even if the kiss with Hector brought it all to the surface again. Taylor tells her that she doesn't even know why it happened with James. They weren't lovers, they were colleagues and she thought that James was going to die. The phone rings and Taylor answers it to find that Ridge is at the airport. His bags are in the trunk and he is on his way home from the airport; he is back home and will be with her soon. She looks at Stephanie, not at all sure about herself and the reunion she had waited for so long for. Aside from all the turbulence Taylor is going through, Stephanie also warns her that she has Brooke to consider. If Ridge has any reason to walk out on his marriage, Brooke will smell blood and come after him again.
Thorne, Darla and Sally discuss what has just happened in Thorne's office. Thorne has offered her a job, but she tells him that she can't accept it. She feels that a year ago she would have been able to do it, but now she just thinks that everyone is feeling sorry for the old lady in the wheelchair. She really doesn't feel that she can handle it. She tells Thorne and Darla that it takes her long to remember things, it isn't the same anymore. Thorne calls her a problem solver and a people motivator, and, that's what the company needs right now. She starts to think about working with her friend, Stephanie and how it could help Thorne keep all those against him being the President, in place. She tells him that she will do it, but, she doesn't come cheap! She insists on a company car, and a driver with large biceps. Thorne laughs with Darla, then agree to her wants and needs. She thanks them both very much. Later, when they are alone, Darla asks Thorne if he rigged that whole scene or not. He laughs and tells her that perhaps he didn't call in all the "smartest" choices that he could have called. Darla thinks that he is wonderful and sweet also.
Brooke is with Nick. She tells him that Taylor said she was going to tell Ridge everything, so she didn't need to be involved in their marriage, it was their business. Brooke doesn't know what to do. Nick asks her if she wants a future with Ridge again. She tells him "no" that she doesn't think of any man, and Nick should know why. Nick suggests that she do what she believes is best. He will back her, no matter what. She tells him that she just wants the truth to be known. She thinks it is best for Ridge to know it.
While Ridge showers, Taylor practices confessing. Stephanie calls to counsel silence regarding James. Ridge will accept Taylor kissed Hector, but not that she slept with James years ago. Ridge wants sex. Assuming Taylor's angry, he apologizes he wasn't with her for New Year's. After they copulate, he gives her a diamond necklace and praises her beauty. Guilty Taylor recounts how his abandonment led to her kissing Hector. Ridge decides Hector took advantage of her. He doesn't want to dwell on it, as it will ruin the evening. Taylor, however, has one more item to cover. Crying, she admits her infidelity!
At Brooke's, she and Stephanie order each other not to interfere. Brooke calls the kiss cheating. She's angry and looking forward to smashing Taylor's pedestal. Stephanie can't believe Brooke might be switching from Nick back to Ridge. Again. Brooke delights in Stephanie's concern. It means Ridge's marriage is shaky and Brooke might have another chance with him. She realizes she doesn't have to tell on Taylor. Her confession will destroy her marriage.