At the Forrester guesthouse, Caroline said that Rick would either talk her out of telling Hope and Liam the truth, or she'd talk Rick into doing it. For Rick, the situation was complex, and he claimed that he'd lied because he'd wanted his sister out of that mess. Rick believed that Liam was in love with Steffy, the master manipulator who'd tricked Liam into marriage.
Rick asserted that it was time Caroline knew everything about the tainted love triangle that centered on Liam. Tracing its roots back to Liam's bachelor party, Rick relayed that Liam's first indiscretion had been making out with Steffy in the car. Liam had found Hope's engagement ring at his house, but instead of going after Hope, he'd given Steffy the ring and then bedded her.
In Rick's view, Bill hadn't been able to get Steffy and Liam married fast enough, so Steffy had lured Liam to Ajax Mountain and ambushed him with a wedding. Rick relayed that Hope had been forced to watch while trapped in a gondola. He said things had worsened when the whole Italy fiasco had transpired, and Hope had gotten an eyeful of Liam and Steffy together on video.
Because Liam had been unable to stay away from Steffy the night before the last wedding, Rick had convinced Othello to lie and help Rick put an end to things once for all. Caroline stated that the lies had to end. She didn't want herself and Rick to start off their relationship by deceiving family members.
As he picked up his phone, Rick agreed to fix the mistakes he'd made. He called Hope to set up a meeting at Brooke's house. After the call, he told Caroline that they would right the wrongs. Caroline said she loved him, and they kissed. She thanked him for doing the right thing and vowed to make sure Hope knew that Rick had only wanted to protect her.
As the two made out more, Rick revealed that Caroline was the best thing that had ever happened to him, and he loved her. They kissed, and Rick unzipped the back of Caroline's dress. He swept her off her feet and carried her to the bedroom, where they made out on the bed.
At Brooke's house, Bill told Brooke that she had no idea how much he wanted her. Their kiss deepened, and the front door slammed. "Mom?" Brooke heard. Her eyes popped open from her nap, and she gasped. "You're dreaming about him, aren't you?" Hope sympathetically asked Brooke.
Brooke seemed frazzled. Hope still couldn't believe Ridge had left the way he had, but she was sure things would work out if her mother gave it time. Brooke and Hope then talked about the blows Brooke had been dealt with Ridge, Stephanie, and Katie. Brooke admitted that caring for Will had been good for her, and in a hollow tone, she thanked God that Katie had returned.
Brooke asked how things were with Hope. Hope explained that she was still sorting things out, and she still didn't understand how it had gone so wrong. Hope wondered why Liam couldn't stay away from Steffy. Hope berated herself for scheduling another wedding instead of cutting her losses after she'd seen the Italy video.
The subject changed to Katie's return. Hope assumed that it couldn't have been easy to spend all that time with Bill. Brooke said that circumstances had stripped him of his "King of the Mountain" attitude. He'd had to be real, and it had made Brooke understand why Katie had fallen in love with him.
Brooke asked for an update on Thomas and Rick. Hope replied that Eric had slowed Thomas' roll a bit around the office, and being with Caroline had probably been the main reason that Rick hadn't been flipping out anymore. Hope and Brooke agreed that Caroline cultivated the best in Rick.
In Liam's office, Bill flashed back to kissing Brooke at Big Bear and to discovering that Katie had returned home. Justin and Liam entered, and Justin guessed that it had been the happiest day of Bill's "recent life" when Katie had returned home. Bill dubiously looked away.
Justin, Bill, and Liam then tried to make sense of Katie's illness. Justin hadn't expected her to succumb to something like postpartum depression. Bill and Liam filled Justin in on what had been going on, and Bill said the only redeeming thing about it had been that it had given him bonding time with Will. Bill figured that he'd step back a little and give Katie that same kind of time with the baby.
Bill was ready to dive back in to work, but he wasn't sure when Katie would return. Liam and Justin volunteered to continue covering for her, and Bill thanked them for taking up the slack. Bill hoped things would return to normal soon, but a dubious look darkened his face.
Justin left, and Bill wondered how Liam and Steffy were. Liam said they were great, and Bill hoped that Liam was living in the moment and not planning any walks down the aisle. Liam assured Bill that marriage wasn't even on the table. Liam loved Steffy and admitted that Bill had been right about her. The gloating Bill said that listening to him would save Liam a lot of aggravation.
The talk turned to Caroline and Rick. Bill was surprised that Thomas was out of the picture. Liam conveyed that Rick had seen to that, and Thomas hadn't even known what had hit him. Liam wasn't a fan of either man, but he said Caroline's happiness was all that mattered.
Bill liked Caroline and felt she was a good addition to the family. Still impressed with himself for being right about Steffy, Bill figured that he ought to talk to Caroline about Rick. Liam, however, said Bill should sit that one out.
Liam asked if Bill were happy to have Katie back. Bill's face darkened, and Liam noted that he'd seen that look from Bill earlier when Justin had mentioned Katie's return. Bill said he was apprehensive of the postpartum depression, and he didn't know how to fight it or if it would return. Liam was sure that Taylor was on top of things, and Bill had nothing to worry about.
Morning broke at Rick's house, and Caroline and Rick cuddled in bed. Caroline kissed Rick and told him that he made her very happy, and Rick said that being with Caroline felt right for him.
At Brooke's place, Hope asked Brooke if Brooke knew why Rick wanted so desperately to talk to her. Brooke said that she didn't know what Rick wanted. Steffy called and insisted that she needed to see Hope immediately at Forrester about the Hope for the Future line. Hope left for the office.
At Spencer, Bill and Liam discussed business, and Bill told Liam that Liam had done a good job. Liam thanked Bill for his advice on Steffy. Liam admitted that Bill had always been right about Steffy, and Liam was happy that Liam and Steffy had found their way back to each other.
Bill asked if Liam still had residual feelings for Hope, and Liam dismissed it. Liam lamented that he had hurt Hope. He added that he had not quite finished working through his feelings for Hope. Liam added that Steffy made him laugh, and they always had a good time. Bill approved.
At Forrester, Steffy and Hope reviewed sales for the Hope for the Future line. Hope admitted that the numbers were dismal. Steffy suggested a new approach for the line. Hope agreed that it had always been about Hope and her values, and she had lost all credibility.
Steffy said that a change could be good for the line and good for Hope. Steffy suggested an environmental campaign. Hope angrily said that Steffy was really advising her to forget about Liam. Hope told Steffy that she was still in love with Liam and always would be.
Hope and Steffy started their usual argument about how every time Hope and Liam got back together, they somehow wound up breaking up because Liam always turned to Steffy when there was a problem. Hope explained that she was not delusional. She knew Liam had made his choice in Steffy. "You two are together, and I hope you are very happy," Hope said, but added, "I still believe that Liam and I belong together."
Liam showed up, and Steffy had to take a phone call. Steffy kissed Liam and left, and Liam apologized for kissing Steffy in front of Hope. Liam thanked Hope for stopping by Bill's place to deliver a present for his baby brother. Hope said that it was fine. She said that she had seen Steffy and Liam making out on the couch as she had left. Hope said that Liam and Steffy were clearly in love.
Hope told Liam that she would always love him. She said that she wished things were different between them. Liam agreed and said that he wished things were different between them as well.
At Brooke's home, Rick and Caroline showed up. Brooke asked Rick what was so important that Rick needed to talk to Hope. Rick and Caroline admitted that they knew something about Hope and Liam that they had not shared. Rick dished that he had gotten Othello to lie about Liam and Steffy's relationship in order to break Hope and Liam up for good.
Caroline shared that she had overheard Bill and Katie when they discussed that Bill had been responsible for getting Deacon out of jail in order to ruin Hope's wedding. Caroline added that Bill had made sure that Steffy followed Liam to his hotel room in Italy. Brooke said that she had known all about what happened in Italy. Caroline and Rick were surprised that Brooke had not told Hope.
Brooke said that Donna had overheard Bill and Katie discussion of Bill's role in the failed Italian wedding, and Donna had told Brooke. Donna had tried to tell Hope, but when Donna looked for Hope, Donna had found Liam and Steffy were making love and had gotten back together. Donna and Brooke had decided not to tell Hope because it only would have hurt Hope more than she had already been hurt.
Caroline disagreed. Caroline said that If Liam had known what Bill had done, Liam might have returned to Hope. Caroline said that Bill could not play with people's lives and expect that there would be no consequences.
Caroline insisted it was time that everyone stopped lying to Hope and Liam. Hope clearly still loved Liam, and Caroline was sure that Liam still loved Hope. Caroline called Bill from Brooke's house and asked him to meet her at Brooke's. Caroline said that she would not keep his secret.
Bill showed up at Brooke's place, and Caroline said that she had overheard Bill and Katie's discussion about what had happened in Italy. She was going to tell Liam. Rick said that he didn't think Liam was good enough for his sister, and Rick admitted that he had interfered in Hope and Liam's relationship as much as Bill had. Rick said that he didn't think Hope and Liam belonged together, but it was time for all of them to tell the truth.
Bill disagreed. He said that Hope was not good enough for Liam, but Bill agreed with Rick that Liam and Hope were not right for each other. Rick shouted that Liam had been disrespectful when he had appeared for the wedding in his underwear with tattoos and multicolored hair. Rick said that Liam had embarrassed Hope, and Rick had needed to do something about it. Caroline said that Bill's heavy-handed tactics had to stop.
At Brooke's house, Bill and Rick argued about telling the truth to Hope and Liam about all the lies that Bill and Rick had told that had impacted Liam and Hope's relationship. Bill claimed that Rick only wanted to confess to impress Caroline. Bill continued to insult Rick, but Caroline defended Rick.
Caroline challenged that Bill was afraid to tell Liam the truth about Deacon because it would damage his relationship with Liam. Bill angrily warned Caroline to avoid getting into the family's past problems. Bill became defensive. He accused Caroline of eavesdropping. Bill said that Rick only wanted to tell the truth in order to make Rick feel better.
Brooke broke up the discussion and claimed that she didn't think anything good would happen if Bill confessed and Hope knew the truth. Caroline lamented that Hope and Liam had been tricked and had no idea what had really happened.
Brooke and Caroline agreed that if Hope hadn't been late for the wedding, everything would have been different. However, Brooke said the bigger problem was that every time something went wrong, Liam turned to Steffy. Brooke said nothing -- including the truth -- would ever change that. Brooke said she had been convinced that Hope and Liam belonged together, but watching Liam turn to Steffy every time there was a problem had made Hope miserable. Bill added that telling the truth wasn't going to make Liam or Hope any happier. Rick and Caroline left with no resolution.
Inside Brooke's house, Brooke recalled her kiss with Bill in a daydream. Bill interrupted and thanked Brooke for taking his side against Caroline. Bill joked that any woman who had seen Bill naked couldn't hate his guts. They talked about their kiss at the cabin. Brooke said it had been magical, but they could never speak of it again.
At Forrester, Hope shocked Liam with the news that she felt she was meant to spend her life with him. She agreed that it sounded odd, and she didn't know how it would ever happen. Yet she remained convinced they were meant to be together. Liam reminded her that she had sent him away, and he had started to move on without her.
Liam realized how difficult it was to be without Hope whenever he was with her. Liam asked if they could be friends. Hope said they would always be connected. Hope wondered what might happen if they were not done with one another.
Liam was surprised. He didn't know what to say. Liam said he needed to be comfortable, and he was comfortable with Steffy. He added that it was not what he had always wanted. Liam said he had not chosen Steffy over Hope. Liam reiterated that Hope had ended their relationship. Hope said she had made the decision she had needed to make at the time.
Liam said that if Deacon hadn't shown up in Italy, their lives would have been completely different. Hope agreed. She said she that she wanted it to be bearable that they had lost each other. Liam complimented Hope, and he left. Hope looked at her wedding photos with Liam and longingly recalled romantic times in Italy with Liam in a series of flashbacks.
On the Forrester rooftop, Taylor and Steffy watched a shirtless Thomas work out on the treadmill. Steffy said it was unprofessional to be seen sweaty and shirtless because Ridge had never done anything like that when people could see him. Thomas argued, but Steffy warned he needed to remember he was CEO. Steffy, Taylor, and Thomas sat down for lunch, and Steffy gave Thomas some photos for an ad campaign. Thomas didn't like the photos. Steffy argued that they photos were exactly what Thomas had asked for.
Steffy changed the subject to holiday plans and said she wanted to do something that included Thorne. Taylor insisted she wanted no help with her own romance. Thomas changed the subject back to business. He said he had a feeling that Steffy resented Thomas' authority at Forrester. Steffy disagreed.
Thomas asked about Liam, and Steffy said that Liam had a meeting with Hope. Thomas wondered if Steffy was all right with Liam spending time with Hope. Steffy refused to worry every time Liam spent time with Hope. Thomas looked unconvinced. Later, Liam called Steffy and said that his discussion with Hope had gone well.
In the CEO's office, Thomas became the largest shareholder in the company once a lawyer told him and his mother that Stephanie's stock had been transferred. Along with the five percent of stock Thomas had gotten from Ridge, Thomas's stock amounted to thirty percent.
Taylor stated that as interim CEO, he didn't even need a vote. "You control the future of Forrester Creations!" she exclaimed. Thomas stated that it didn't matter if Rick disagreed with them anymore. "I don't need anyone's approval to take this company forward," Thomas decided.
In Rick's office, Brooke expressed her approval of Rick and Caroline. Rick beamed that Caroline made him want to be a better person. Making the choice to confess to Hope and Liam had felt good to Rick, and he was still on the fence about following through with it. It was a decision he felt that he and Caroline needed to make together. Brooke reiterated that Bill could lose his son -- or worse. Rick replied that Bill should have thought of that before bribing public officials.
Brooke noted that Rick and Caroline were a good team and a couple to watch. Rick said they would be as soon as Thomas was unseated and Rick could run the company with Eric. Brooke doubted that would happen because Stephanie's shares would give "them" the control they'd always wanted. Rick didn't know what Stephanie had been thinking to give the novice Thomas that much power.
In Rick's eyes, Eric had founded the business, and Brooke had been the driving force behind it for decades. Rick asserted that Forrester was his birthright, and he couldn't let Taylor and Thomas take it away. Brooke thought Stephanie had realized she'd made a mistake but had probably rectified it.
Madison entered to relay that Thomas wanted to see Rick. Rick said he was in the middle of something, but she insisted that it was urgent. "And so it begins," Rick bitterly uttered to his mother.
Rick and Brooke went to the CEO's office, and they were surprised to see Taylor there. Taylor wondered what Brooke was doing there, and Rick stated that Brooke was an integral part of the company. Brooke said she'd assumed that Taylor was with Thorne in Europe, visiting Ridge.
The defensive Taylor wondered why she'd do that. She said she didn't follow Thorne around like that, and they were just friends. Rick, Brooke, and Thomas seemed surprised to hear that. "When it isn't right, it isn't right," Taylor murmured and hastily changed the subject to Thomas' meeting.
Thomas asserted that there were about to be big changes. Rick stated that nothing would change without Eric. Thomas claimed that he'd tried to be respectful of Eric's grief, but the company had to move forward before it fell behind. Taylor asked why "we" should continue to drag "our" feet. Brooke stated that Steffy and Thomas were valuable to the company, but they didn't call all the shots.
Taylor said Brooke thought her family should call the shots, but despite their experience, Ridge had made Thomas CEO. Brooke claimed that Ridge had made questionable decisions, but Taylor replied that he'd had the power to make the choice. Thomas proclaimed himself CEO, but Rick quipped that Thomas was a placeholder at best.
With a deriding grin, Thomas reported that he'd become the largest stockholder upon Stephanie's death. While he claimed to value input, he asserted that he could do whatever he wanted, and Rick couldn't do a thing about it.
Rick didn't even know why they were having the meeting. He stormed out, and Taylor quipped that Brooke should teach her son to handle things gracefully. Brooke asserted that they wouldn't let Thomas take over the family business and do whatever he pleased.
Taylor claimed that Stephanie had given Thomas the shares because Thomas was Ridge's heir. Brooke asserted that "we" would be challenging that. Taylor told Brooke to go ahead, but Brooke and her children had been running the show long enough. Taylor bragged that her kids were the future, and Brooke would have to learn to accept that, too.
On the Forrester rooftop, Caroline and Hope chatted at a table. Caroline beamed about being with Rick, and Hope replied that Rick felt the same way about Caroline. Hope and Caroline were glad that they could be friends. Caroline hadn't had a lot of friends growing up because people hadn't understood her two-mom household.
The two laughed about Brooke matchmaking Rick and Caroline, and Hope said Brooke hadn't given up even when Caroline had been dating Thomas. Caroline wondered if Hope had given up on Liam or if she'd take Liam back if they had another chance. Hope didn't think that was even an option, and she didn't want to consider it because she'd already given him to Steffy.
Caroline asked if Hope had ever asked Liam outright about that infamous night, and Hope said he'd denied making out with Steffy. Caroline asked why Hope hadn't believed Liam, and Hope shrugged, recalling that he had a bad track record with Steffy. Caroline guessed that Rick's and Othello's statements had played into it, too, but she wondered if Hope would take Liam back if the path were clear.
Hope asked what was spurring Caroline's questions. Caroline replied that she thought Liam and Hope had been a great couple, and it was unfair that a good person like Hope didn't have the happiness she deserved. Hope said she'd once thought that outside forces had kept her and Liam apart; however, she'd figured out that it had been Liam's feelings for Steffy.
Hope had begun to acknowledge Liam's feelings for Steffy, and Hope didn't know how she could be with a man who'd made out with another woman the night before his wedding. Hope felt she had to draw the line somewhere, and she believed that her heart would mend in time.
In Liam's office, Liam met with his employees about Sierra interviews and Lady Ga Ga footage. Steffy entered as it ended and claimed to be all hot and bothered by watching him conduct business.
After they made out, the two discussed Thomas' position. Steffy said Thomas was meeting a lot of resistance from Rick. Liam wasn't surprised because Rick had wanted that job. Steffy revealed that a rivalry between Brooke's and Taylor's children had been brewing for a while. Steffy claimed that Hope and Rick had been on top, and though Thomas had gotten control, it could shift at any time.
Liam wondered why Steffy wasn't upset that she hadn't been appointed CEO. Steffy said she was more interested in enjoying life than crunching numbers, but she'd support her brother with her experience. She offered to throw some of her business savvy Liam's way, too.
Steffy liked that Liam wasn't too macho to listen to his woman. Liam replied that he had a "hell of a woman," and they started making out. As pair joked around, Caroline entered with a serious look on her face. Liam wondered what was wrong, and Caroline said he needed to know something.
In the Forrester corridor, Eric asked Pam to go to the bank to collect the contents of Stephanie's safe deposit box and to deliver it to him immediately, even if he were in Thomas' meeting.
Eric entered Rick's office as Rick, Brooke, and Hope discussed what Thomas' newest meeting would be about. Eric guessed it would be about the changes to the boutiques, but Rick figured that with Thomas' position and stocks, the meeting would be about demands, not proposals. Brooke asked Eric if there was a way to stop Thomas. Eric stared back hopelessly, and they all left for the meeting.
In Liam's office, Steffy decided to head to Forrester for her meeting, so that Caroline and Liam could talk in private. Caroline replied that the matter she needed to discuss involved Steffy, too. Before Caroline could get any further, Bill entered, ecstatic to see his "favorite niece."
Liam relayed that Caroline was just about to tell them something. Glaring harshly at Caroline, Bill asserted that she'd better make it quick, or it would have to wait until Liam returned from a last-minute business trip that Bill had just scheduled. Caroline said that she'd only wanted to relay that Hope still loved Liam. Caroline flashed a cutting gaze at Bill, and he rolled his eyes as she took off.
Bill dropped a stack of files off for Liam to review on the flight, and after Bill left, Liam wished Steffy could go on the trip with him. Steffy said she had a lot going on at Forrester. She asked if Liam were okay with what Caroline had said earlier, and Liam assured Steffy that it didn't change a thing.
Sometime later, Bill returned to the office with Liam and remarked upon how weird Caroline had been earlier. Bill suggested that Liam tell Caroline to keep her feelings about Hope to herself. Liam said it was okay. Liam had made peace with Hope's decision to end things, and being with Steffy felt right. Bill applauded Liam for not dwelling on the past. "Like father, like son," Liam replied.
Later, Liam was alone, trying to concentrate on the files he had to review, but he wound up flashing back to when he'd reunited with Hope after Katie had exposed Bill's lie about the blood clot.
In Rick's office, Othello and Caroline arrived at the same time to visit Rick. Marcus was there, but he said Rick was in a meeting. Marcus and Othello chatted about Othello's deejaying gig. Othello prepared to leave, but Caroline asked him to stay for a talk.
Marcus left, and Caroline told Othello that she knew about the lie. Othello pretended not to know what she was talking about, but she told him that Rick had confided in her. Othello felt relieved to hear that Caroline and Rick had been considering telling Liam and Hope the truth about it. Caroline said it was complicated because Bill and Brooke were pressing Caroline and Rick to drop it. Othello insisted that Hope and Liam needed to know the truth.
Later, Caroline returned to Liam's office. Liam's chair faced the wall, and Caroline told the person sitting in it that she'd lied earlier. She seemed to be a nervous wreck as she conveyed that she couldn't let Liam take his trip without telling him the truth first. She spilled out all secrets that she'd been keeping about how Bill, Deacon, and Rick had schemed to keep Hope and Liam apart. The person in the chair didn't move, and Caroline figured that Liam couldn't even look at her anymore.
Back at Forrester, Taylor was proud to see the actualization of her dreams of Thomas being at the helm of Forrester. She advised Thomas not to listen to the Logans, and he figured that Rick would have to agree that they needed to do something to place the company in the new century.
Brooke, Hope, Eric, and Rick arrived, and Thomas was surprised that Eric was there. Eric said that Rick had apprised him of the meeting. Everyone sat down, and Thomas explained that Stephanie's passing had made him the largest stockholder. Reminding everyone that he was also interim CEO, he announced that he was ready to make some changes.
In the corridor, Pam asked Steffy to give Eric a package and a lemon bar that Pam had bashfully placed on top of it. Steffy took the package into the CEO's office, gave it to Eric, and joined the meeting.
Thomas stated that it was time to implement his ideas with or without anyone else's approval. Rick murmured to Eric that he needed to do something. Eric sullenly said he didn't have any control. "It's their company now," he uttered.
The meeting continued as Eric sorted through the contents of the package he'd gotten. Rick and Hope advocated for Eric's plan to experiment with the store on Rodeo Drive, but Steffy cut in to assert that Thomas got to make all the decisions for their clients. Hope asked if Thomas had been getting advice from experienced people like Ridge or Eric. Thomas claimed that he had run his ideas by Ridge, but Ridge had checked out and needed time away.
Taylor stated that Ridge had felt comfortable enough to leave the business in Thomas' hands, but Brooke stated that Hope was only suggesting that Thomas tap into the wealth of experience that Ridge, Eric, and Rick had with the business. Steffy scoffed at Rick's Forrester International experience and wondered when he'd last worked in the basement. Hope shot the same question back at Steffy, and Thomas apologized for making things contentious. He claimed it hadn't been his intention.
Eric seemed to ignore the flaring tempers in the room as he carried forth a DVD he'd found in the package. The DVD had been labeled, "To the Family," so Eric asked if they could watch it. Thomas put the disk into a player, and a sickly Stephanie appeared on the screen. Stephanie said that Eric needed to gather the family to hear what she had to say.
Stephanie was struggling to breathe as she explained that her father had never signed a contract that hadn't contained a loophole. It had gotten her to thinking, and she'd had their lawyers review the original incorporation papers of the company. The lawyers had found a loophole that gave Stephanie, the original financier of the company, the power to appoint a permanent CEO. "So the new CEO of Forrester Creations is -- " Stephanie started to say, but she was cut off by a sudden coughing fit.