When BEA says that she lied for money paid to her by Jill, Jill jumps up and begins calling her a liar. Michael just stands there and lets her rant and rave. John tries to quiet her, but he has very little luck. When she finally shuts up and sits down, Michael asks to respond but the judge refuses. He turns to Jill and tells her that ordinarily he would throw her out of the court, but he thinks a greater punishment would be to let her stay and listen while Ms. Tucker explains how she was paid for her testimony. But she shouldn't get too comfortable; at the end of today's session he will fine her and the fine will be of the magnitude of her outburst. With Michael's help, Beatrice recants her previous testimony and tells the court how Jill gave her $5,000. She says that it influenced how she would explain the story. She explains to the court that Katherine was intoxicated most of the time and she was intoxicated when she signed the power of attorney. She called it HER house and said she only wanted it if Phillip was living there with her. Looking around Michael, she tells Katherine that she is sorry to have to say it, but Jill didn't take Mr. Chancellor away from her; she drove him into Jill's arms. The help felt sorry for Mr. Chancellor and for Jill.
Before cross-examining Bea, John gets a short recess so that he can question Jill about the money. He asks her to tell him the truth but Jill waltzes around the truth in her righteous indignation that Bea cannot prove that she gave her any money. Across the aisle, Katherine observes that Michael looks like he is on top of the mountain but John looks like the mountain fell on him. Michael is pleased but tells her not to get ahead of herself; they aren't out of the woods yet!
John begins his cross-examination hitting home the fact that Bea only received cash from Jill, therefore she cannot prove that she is telling the truth. She says that he will just have to take her word. He points out that she has already admitted lying to the court, so which is the truth? Is it what she said before or what she is saying now? Without any proof, how will they know which is the time that she lied? Reaching into her purse, she says that she does have this. She shows him a piece of paper and explains that it is a photocopy of the check that Jill wrote before she asked for it back and gave her the cash instead. Katherine raises her fist in triumph as Jill sinks down in her seat.
VICKI is working in Brash and Sassy when Cole stops by and says that he caught her. He admits that Miguel slipped up and told him that she had come in. She says that she isn't working too hard and asks him to come to the ranch for Christmas. He explains that he lives at the Abbott house now and if Ashley doesn't get back by Christmas, Jack will be alone. Anyway, he doesn't want them to begin depending on each other. She understands.
GRACE tells Alice that she is Tammy, the Tammy who called earlier. Grace tells her that she still doesn't want to be a part of the alumni book. Alice continues to ask about Sharon. Grace makes up a name, Julie Porter, saying that she and Sharon were very close. Alice says that she did speak to Julie and she hasn't been in touch with Sharon for a long time. Grace tells her to give it up; there is no Julie Porter. Alice admits that she lied. She says that Sharon stole her little girl and took her away. Now she wants her back. Grace wonders how Sharon could have stolen her child. Alice says that he mother just handed Cassie over to Sharon. This is hard for Grace to understand. Alice explains that she really, really wanted Cassie, but she was young. She wasn't handling the mother bit very well, so she left to get her life together. She left the little girl with her mother who was old and sick and not able to take care of a child. That is why her mother handed her baby over to Sharon. "If you know where Sharon is, tell her I'm not out to make trouble. I only want my little girl back; I'll never give up my rights to her," Alice says. Grace says she doesn't want to get into the middle of anything, but she says that there are more important things than legal rights. The light comes on. "You know where Cassie is, don't you?" Alice asks happily. Grace denies knowing anything. Alice tells her that if she remembers anything to give her a call. "You won't be sorry," Alice promises as she leaves. Alone, Grace looks panic-stricken.
VICTOR is staring out his window thinking about Jack and Brad when Vicki arrives with some work folders. When she hands them to him, he tosses them aside, saying Jack can read them later. They comment on how quiet the company is now that people are on Christmas vacation. He says that it is how it will be at the ranch this year without Nick, Sharon and the kids. He goes on to say, bitterly, that he can't understand why Sharon can't just put Nick's indiscretion aside, at least for the holidays. She is ruining Christmas for them all. Vicki mentions Nick's indiscretion but Victor brushes that aside saying that Sharon is just being selfish. Victoria says that Sharon just needs some time. Victor asks about her and Neil, but Vicki isn't ready to talk about it. Victor remarks that he can't talk to his kids about anything these days. Victoria promises him that they will have a great Christmas as she heads home for a little rest.
OLIVIA visits Neil and insists on a hug. She wants to firm up their Christmas plans. He is going to the ranch for Christmas Eve, then he will spend Christmas Day with her and Malcolm. Neil tells her that he is sure that it won't be long before Victoria is back to her old self and he will have her back. She has been through a tough time; she almost lost her life and her baby did lose its life. He just wants her healthy again and feeling good about herself. Olivia warns him that Vicki will need time and that she shouldn't overwork herself. Neil says he will watch her. He mentions that Olivia is looking better also. She tells him that Callie has gotten herself a new gig opening for Aretha Franklin and if this works out, as she is sure it will, she, Olivia, will have happy holidays!
TONY drops in at Crimson Lights and Jay tells him that he has heard about him and Grace; he is sorry it didn't work out. Tony takes his coffee to the table where Megan is waiting for him. She invites him to spend Christmas with her and her father but Tony declines. He says that her father didn't approve of Ryan because he had previously been married and compared to him, Ryan was a choirboy. Since he has declined her invitation, she gives him his Christmas gift and asks him to open it. He is embarrassed that he didn't get her anything, but he opens the gift anyway. He is delighted to find a pair of gloves to wear on his motorcycle during the winter. Megan says he can give her a ride on the motorcycle as her gift but he tells her that that won't win him any points with her father. They decide that a kiss will do and each lean across the table and kiss. Megan has to leave. After he is alone, Tony examines the gloves and tries them on. Grace comes up and says that they are nice. He tells her that it was a present. He gets up to leave but she stops him. She says that she has to talk to him; it is important. He says that he has wasted enough time on her over the years and he doesn't want to waste another. Grace tells him that she only wants a minute. She says that this isn't about them; it is about Cassie. "You are going to listen to me because I need your help badly!"
NIKKI arrives at Victor's office wondering what is so serious that he couldn't discuss it on the phone. Victor says that he has made a decision and he wants to let her know about it. He tells her that he is handing over the control of Newman Enterprises to Jack and Brad. He says that this is for the good of the company; he needs to play a less public role in the business until he can take care of some of his lingering problems. "It's that witch!" Nikki spits out angrily. "This is Diane's fault, isn't it? It is because of that talk show. You said that it wouldn't have an impact on business. That woman will never get enough!" Victor tells her that even though Diane has agreed to the divorce, she hasn't accepted a settlement and they both know that is due to her obnoxious attorney. Nikki says that since Michael Baldwin is busy with Katherine's case that gives him more time to make them sweat. Victor tells her not to worry; Diane will get her come-uppance!
PAUL and CHRIS arrive back at the office and tell Lynn that things went well in Norfolk, even though she doesn't know what is going on. Inside the private office, Paul says that he is trying to deal with all the facts. He can't get his dad out of his mind; he looked into his eyes and there was nothing there---no recognition at all. He says that his dad isn't his dad any longer. He is glad that he is alive; it helps to know that he is happy and has someone in his life. Maybe it is time to move on. Lynn comes to the door and tells them that Mary is there. Mary comes in very happy and in a good mood. She says that she is there to firm up plans for Christmas Eve. Charlie has bought the turkey already and Paul and Chris are bringing the wine. Paul and Chris assure her that they wouldn't miss it for the world. After Mary leaves, Chris says that she wonders if she did the right thing. Paul says that this was the best gift she could have given him. He knows that his dad is alive even if he is living a separate life somewhere else. Also, his mom is moving on with her life. Chris leaves and Paul sits at his desk playing with the baseball. He remembers the day that his dad caught the ball for him; he remembers telling him that he was the best dad a boy could have and he would never forget this day.
JIM and RUTH are still packing up the house. Jim stops for a while and stares out the window. Ruth wonders what he is thinking. He tells her that he is thinking about Paul. Paul sees him as his father but he treated him like a total stranger. Paul must have been devastated. He is only now beginning to understand what he did to that boy. Ruth wonders what he can do about it and Jim says that he is thinking about going to Genoa City to see if the town brings back any memories. Ruth is devastated! She tells him that it is over and they shouldn't stir up any trouble. Jim doesn't answer except to say that he is going in the other room to tape up the boxes.
TONY will not listen to anything Grace has to say even though she says that she needs his help with Cassie. He assumes that she wants him to smooth things over with Sharon so that she can spend Christmas with Cassie. She tries to tell him that that isn't it, but he goes on. He tells her that she isn't the proper role model for Cassie. She asks him if he really feels that way about her. Tony says that he does and leaves. Grace sits down and remembers what Alice said to her about needing her help. You won't regret it, she remembers Alice saying. "I wonder," Grace says.
SHARON and CASSIE have been Christmas shopping and stop by Crimson Lights to warm up with some hot chocolate. Sharon sits Cassie at a table and goes to get the drinks. Grace is just leaving when she sees Cassie sitting alone. She comes over and speaks to her. Cassie asks her to sit down. They talk about last year's Christmas. When Grace brings up this Christmas, her first with her natural mother, Cassie doesn't seem enthusiastic. She tells Grace that she misses Nicholas and her mommy seems angry at everyone except Tony. She gets angry when Nikki comes to the house. Cassie says that she is afraid that they will leave the ranch and move somewhere else. She doesn't want to leave the ranch; she likes it there. Cassie asks Grace to talk with her mother; she will listen to Grace because Grace is her best friend and she knows you would never lie to her. Just then, Sharon walks up behind Cassie with their hot chocolate. She gives Grace an ironic smile. Cassie says that Sharon forgot the marshmallows. When Sharon starts to go for them, Cassie says that she will get them; she has to go to the rest room anyway. As she walks by Grace, she whispers, "Now is your chance, Grace, talk to her." Sharon sits down and looks at her nemesis. "Well, Grace, looks like you've got your chance. What did you want to talk to me about?"
BEA hands the photocopy of the check to John and Michael gets a very happy look on his face. He comes up asking to see the item. Judge Jennings is surprised that Michael didn't know about it. When Michael asks to put into evidence, the judge agrees.
JILL jumps up and wants to go back on the stand. She feels that if she explains, the judge will understand. John tells her that getting on the witness stand would be the worse thaing she could do; it would be like cutting her own throat. "For once in your life, listen to me!" John pleads. When she finally sinks down in her chair, the judge asks if he has any rebuttal. No, he says. The judge tells them that he will listen to arguments.
John begins and ends the arguments. He says that his case rests on the facts. Phillip Chancellor owned half of the estate and he had the right to give it to whomever he wished. He says that Mrs. Chancellor gave him her half of the estate by an unrestricted power of attorney. Phillip had the right to leave the estate to Jill whether or not Mrs. Chancellor approved of Jill or not.
Michael argues that Phillip Chancellor was NOT acting in Katherine's best interest when he used the power of attorney to convey the estate to Jill. The ownership of the estate rested on the marriage itself. He had no right to make a gift of his wife's half of the estate. He should have given the house back when he decided to divorce Katherine. The judge says that he needs to go over some notes and he will be back shortly with his ruling.
During the absence of the judge, both Jill and Katherine drive their attorneys to distraction by pacing the floor. They know that their fate will be decided in only a few minutes. It is a relief when the bailiff announces that court is back in session. Judge Jennings rules that based on the evidence, both Jill and Katherine each have a right to half of Phillip Chancellor's holdings. Therefore, he is ruling that they will share equally and be co-owners of the estate. He hopes that they can put their animosity to rest and learn to live together.
Both Jill and Katherine sit there in a stupor, neither knowing what to do or say.
DIANE is working when Marissa interrupts her, telling her that she is making tea. Diane decides to join her. Marissa notices a wrapped gift nearby and remarks that Diane has found some time for Christmas shopping. She guesses that the gift is for Mr. Carlton but Diane corrects her. The gift is something she bought for Jack. Just then, the doorbell rings and both women wonder who it could be. Diane opens the door and is surprised to find Nikki there. Nikki remarks that she is the last person Diane expected to see and Diane agrees, especially since the doorman has specific instructions not to let her up. Nikki says that there is something that she has to say and she isn't leaving until she does. Marissa goes to the kitchen after telling Diane that she should call if she needs her. Nikki says that Diane's devious actions have made Victor turn over the running of the company to Jack and Brad. Diane is stunned but Nikki tells her that she is the reason and she will never get away with this.
JACK and BRAD are talking at Gina's, wondering why Victor still hasn't issued that memorandum about stepping down. They wonder if he intends ever to do it; maybe he never intended to do it. He has the two of them doing all the work and he just sits back taking credit for it all so why should he step down? If that isn't the reason, then he must have caught on to their plans. As they are each blaming the other for messing up, Jack's phone rings. It is Victor calling to tell Jack that he wants to see him and Carlton in his office right away.
When they arrive at Victor's office, they are frightened that they are going to be threatened with a takeover. However when they enter the office, Victor shows them a memorandum that will be distributed immediately stating that Jack and Bradley will be in charge until he returns. He stresses that he will be back. He says that he has been hesitating because they are not experienced in handling a company of this size. In addition, they are having trouble working together. Now, he tells them, they will learn what he does for this company but they shouldn't get too comfortable because this is a temporary arrangement. Jack tells him that he won't be sorry; Victor answers that he knows he won't because he will be watching him. Victor leaves the office. Once they are alone, both men breathe a sigh of relief. Brad says that it is happening and he feels good but Jack says that they have no time to celebrate; they have to get moving. "It's the beginning of the end for Victor Newman," Jack says. "He will never sit in that chair again," he adds as he turns the chair to the wall. He and Brad leave the office together.
When CASSIE goes to the restroom, Sharon tells Grace that she has her chance but what is she going to do with it. Grace wants Sharon to know that no matter what has happened, she really cares about Cassie. "Were you thinking of Cassie when you slept with her stepfather?" Sharon wants to know. Grace says that she wasn't thinking. She knows that she did wrong and she is sorry but no one with the last name of Newman want to hear it. Sharon tells Grace that she made a plan and went after Nick and that isn't the kind of person who would be a good role model for her daughter; she doesn't want Grace anywhere near Cassie. Grace says that that may be the way Sharon feels but she would be willing to bet that that isn't how Cassie feels. Sharon doesn't care; she wants Grace out of her daughter's life and she will see that it happens. When Cassie returns to the table, hoping to get some good news from Sharon and Grace, she is disappointed when Sharon tells her that they have to leave. After hugging Grace, Cassie accompanies her mother out of the café. "Cassie loves me," Grace says to herself when she is alone. "No matter how much you don't like it, she loves me. And you don't have a legal right to her either, but I know someone who does and she is just waiting for my call."
NICK arrives home he and Vicki wonder why their dad wants to talk to them. Victor arrives home at that time and tells him that he has some serious news to share with them. He tells them that he is stepping down and he is putting the company in the hands of his top two men. Neither can say anything for a moment, then Vicki asks if he is serious; are you giving the company to Brad Carlton and Jack? She doesn't get it, she says. Victor explains his reasons but Vicki doesn't think that they are good enough. She wonders if this is a fait accomplei and why she and Nick didn't have a say in the making of the decision. He tells her that their father makes the decisions until the time when he puts the company into their hands. Vicki says that she wants to go on the record as saying that he is making a huge mistake. She turns abruptly and goes back upstairs. Nick tells his father that he works too hard anyway and if he needs time to put his life back together, then he should take it. Victor thanks "My Boy" for understanding then tells him that he should take a page from his father's book and straighten out his own love life. Nick tries to tell his father that he and Sharon will eventually work things out and for the moment he is giving Sharon the time that she has asked for. Victor tells him that he should remind Sharon that it is a cruel world out there. She should think twice before throwing away the security she has with us, Victor declares.
CHRISTINE stops by Nina's place and Nina tells her about her Christmas plans. Nina tells her that Ryan is spending the day with her and Phillip as a family; she things that things are finally working out for them. Chris thinks that she is talking about reconciliation with Ryan but Nina sets her straight. She wants a Norfolk update and Chris says that it was very disappointing, as Carl didn't remember anything. She has to leave, as she is expected at Mary's for dinner.
NIKKI is in good form as she shouts at Diane about what she has done to Victor. You can't get enough can you, she asks. She says that Victor offered her a settlement that would have left her a very wealthy woman but she wasn't satisfied. She wanted more and more until now Victor has to step down from the leadership of his own company because to stay in control would ruin the business. When she has a chance, Diane tells her that she never meant for this to affect Newman Enterprises but Nikki continues with her diatribe. She accuses Diane of dragging her husband's name through the mud and ruining his reputation just to satisfy her need for revenge and her desire for money. She adds that Diane and her attorney will rue the day---they will regret doing this to her husband for the rest of their money-grubbing lives. With this, Nikki storms out with a slam of the door.
JACK is in his office when Jennifer tells him that Brooke Logan is on the phone for him. It takes him a second but he finally realizes who Brooke Logan is. He tells Jennifer to put the call through.
KATHERINE and ESTHER walk up to the front door of the mansion and insert the key into the lock. They open the door and walk solemnly into the front room. Esther begins taking the dust covers from the furniture saying that they are finally home. She has never been happier in her life. The people at the hotel was driving her crazy by not letting her do anything. "Yes," Katherine says, "Thank God! And we are back to stay!" They turn when they hear the sound of a key being inserted into the lock and find Jill being assisted into the house with her bags. With a satisfied smile on her face, Jill looks around and says, "I'm home, Phillip. I'm home at long last!" The limo driver offers to take her bags upstairs but Jill remarks that maybe she can talk Esther into taking them up for her. Katherine tells Esther to go upstairs and begin unpacking her bags; she will handle Jill. Esther goes upstairs, pointedly walking around Jill's bags. Jill doesn't care. She walks around the room, touching this and that. "I'm back where Phillip wanted me to be," she says. Turning to Katherine she continues. "You cannot throw me out this time; we are stuck with each other. We will have to try to find a way to make the best of things." Katherine tells her not to start telling her what she can or cannot do but she is right in one respect. They do have to find a way to get along. Jill says that she is going upstairs to unpack her bags. Katherine tells her not to even think about taking the master bedroom. Jill says that she is so happy to be back in this house that she won't even care what room she has.
At Crimson Lights, TRICIA is having coffee with Ryan before he leaves for Tricia's house. When he suggests seconds, she says that he wouldn't want to be late arriving at Nina's. Ryan asks if there is a little sarcasm in that statement and she says that she isn't looking forward to spending Christmas Eve alone while her husband, who should be spending the time with his new wife, is actually spending the day and night with his former wife. And my son, Ryan reminds her. He reminds her that she knew he had a son when she married him. She says that she didn't realize that she would always have to take a back seat to that son. She says that she will just spend the day looking forward to Christmas Day when she will have him all to herself. She guesses that they will just have to improvise since the ski trip fell through. Ryan is sorry about that and says that maybe they can go some other time. He leaves an unhappy Tricia at the table.
MEGAN soon joins Tricia. Tricia tells her that she could just kick herself for giving in to her feelings and emotions; she didn't want Ryan to feel guilty about leaving her alone. Megan reminds her that she doesn't want to make Ryan choose between his wife and his son. Even if he chose his wife, he would always hold it against her. Tricia says that she thinks that she has an idea how to circumvent the problem; she has to give Ryan a baby. Then maybe next Christmas Eve, he will want to spend the time with her and his child.
At Gina's, JACK and BRAD are having drinks to celebrate their coup. They realize that they have a minefield to get through but Jack feels that he knows Victor so well that he knows where all the mines are located. Brad asks about Ashley and Jack tells him that it is none of his beeswax but Brad tells him that he isn't after Ashley; he has his eye on someone else. Jack's phone rings and when he answers it, it is Diane asking him to stop by her place today. He coldly tells her that he can't do that. She asks him to stop by on Christmas day and he says that he has family obligations. When she mentions that she would like to see him at some point over the holidays, he tells her that he has to skedaddle. He wishes her a merry Christmas and quickly hangs up on her. Brad chides him for lying and Jack accuses Brad of being jealous. "You laid on a bucket full of charm and she still calls me!" Jack says. Brad says he is sorry to burst his bubble, but Diane isn't the person he has his eye on. He adds that he wants Diane to be on their side, however. Jack says that he got a call from another lovely lady today, Brooke Logan of Forrester Creations. He says that she wants a new perfume created just for her new line of lingerie. He is flying out today to talk with her about it. Brad is surprised that he will be left in charge for the day.
RYAN arrives at Nina's and asks where Phillip is. She tells him that he is in his room wrapping a gift for him. He sits with a sign and Nina realizes that something is wrong. He says that he just hates to be away from his wife. Nina tells him that Phillip wants to go to the midnight services and Ryan says it is no problem. Phillip comes out and rushes into his father's arms. After he has told him how happy he is to be spending the day with him, he begs to be allowed to give Ryan a gift. Opening it, Ryan is moved to find a new wallet and asks how he know he needed one. He assures Phillip that he is pleased. Getting serious, Phillip tells Ryan that he once thought that when Ryan married Tricia, he wouldn't be around much. But he was wrong. He knows now that his dad is going to be there for him always. "I love you, Dad!" Phillip says as he throws his arms around Ryan.
NIKKI surprises Katherine with decorators who are decorating the house for Christmas. They leave most of the tree for Katherine to decorate, but the rest of the house looks very festive and Katherine tells her so. When Jill agrees and thanks Nikki for the decorations, she wants to know what SHE is doing here. Katherine explains the Judge's ruling. Nikki is shocked. She invites Katherine to her home for Christmas---she insists on it, but Katherine says she wants to spend Christmas in her home even if she has to share Christmas with Jill. Nikki leaves, telling her friend to call her if she needs her. Jill and Katherine talk, saying that the Judge has spoken and they have to make the best of the situation. Both ladies are very quiet and respectful of each other. Who knows, Jill asks. We may be able to get along together. Katherine remarks that that will be a true Christmas Miracle.
CHARLIE and MARY are decorating the tree and waiting for Paul and Chris to get there. Charlie turns on the tree lights and they are smooching when the door flies open. It is Paul and he wonders why they are looking so guilty. They act like they don't know what he is talking about. Before Paul can interrogate them any further, Chris arrives with her arms full of presents and her offering for dinner. Paul kisses his wife and Mary informs him that the mistletoe is over here; she and Charlie go into the kitchen while they try out the mistletoe. Later, they come out with hor d'oeuvres saying that it will be an hour before dinner but this will keep starvation away. Paul demands to know what is going on and Mary, secretly slipping her ring on her finger, asks Charlie if they can tell them now instead of after dinner. Beaming with pride and happiness, the couple announces their engagement. Paul and Chris are stunned speechless.
In Norfolk, JIM picks up the phone and calls Trans Global Airlines and books a ticket to Genoa City for that day.
"I'll Be Home For Christmas" plays softly in the background as CHRIS fawns over MARY'S engagement ring and PAUL congratulates his mother and welcomes CHARLIE to the family. Mary tells everyone that she's in charge of the altar flowers and she must be there early. Paul and Chris tell her they'll be there a little later on. After Mary and Charlie leave, Chris and Paul talk about the engagement surprise. Paul says he's just glad that his mother doesn't know that his father is alive. It would have killed her to have his dad look at her with no glimmer of recognition or remembrance of their life together.
VICTOR and NIKKI are preparing for Christmas Eve dinner. Nikki is preoccupied with the situation between Nicholas and Sharon. She shares her concern with Victor. She is hoping that the Christmas spirit will work a miracle. Victor tells Nikki he thinks it's time that Nicholas takes matters in his own hands. NICK comes in while Victor is talking to Nikki and tells them that he's going to do exactly what his father suggested. He's going to down to see Sharon, Cassie, and Noah to bring them their gifts. "Who can turn away a guy bearing gifts on Christmas Eve, huh?" he jokes. On the way out of the house, Nick runs into NEIL and welcomes him.
NEIL and VICTORIA exchange hugs and kisses and Victoria, who is in the holiday spirit, shows Neil all her gifts to him under the tree. He insists that she open one of his presents to her immediately. When she does, she finds a beautiful gold cuff watch with a rectangular face. Neil tells her that she can now count the minutes until they get married. She hugs him again. Nikki and Victor sit on the couch talking quietly but Nikki looks uncomfortable with the displays of affection between Neil and Victoria.
Victoria watches the snow fall silently outside the large bay window in the living room at the main house. Neil comes to her and asks if something's wrong. She tells him that the lights are on down at the tack house. Evidently Ashley did not make it back for the holidays and Cole has decided to work. Victoria asks Neil if he'd mind if she went and invited Cole to eat with them for Christmas Eve dinner. They've all been through so much and he shouldn't be alone on Christmas Eve. Neil tells her to say no more. Of course it's all right with him. Victoria grabs her coat and leaves for the tack house.
Meanwhile, TONY has come to visit CASSIE and SHARON. Cassie tells Tony that she saw Grace at the coffeehouse and she asked Grace to help get Nick and Sharon back together, but she doesn't think it did any good. Cassie says that her mom is mad at Grace, Nick, and so many other people. Tony tells her that it's a tough time for Sharon, but she'll get through it. Cassie then begs Tony to help bring her mom and Nick back together. Her shining eyes plead with him and Sharon comes out of the nursery, where Noah is asleep. She wonders if she's interrupted something. Sharon sends Cassie to get Tony's gift. Sharon tells Tony about her and Cassie's little visit with Grace yesterday. Sharon is determined to keep Grace away from Cassie. Tony tells her that if she needs him he'll be there for her. He has to go and wishes Sharon and "Peanut" a merry Christmas. When Tony opens the door, they all find Nick on the doorstep. Tony asks if he should stay, but Nick tells him that Sharon, "my wife," will be all right.
Cassie is excited to see Nick and gives him a big hug and a warm greeting. That's the kind of greeting he was hoping for, he tells Cassie. He says that he's brought gifts for everyone and Cassie tells him she has a gift for him too. Nick suggests that they open one together. Nick opens his first and finds a tie. It has a black background with children's handprints in primary colors scattered all over. One phrase is printed over and over on the tie. Nick reads it aloud, "I love my Daddy." Cassie tells him it's how she really feels. Nick is overwhelmed. He tells Cassie it's her turn to tear into her gift. Inside the box, she finds a pair of shoes with high heels. She's so excited. She's never had shoes with high heels. She thanks Nick. Sharon tells her that they'll put the rest of the presents under the tree for tomorrow. Nick tells her that he has gifts for her as well. Sharon tells him that under the circumstances she doesn't think she should accept any gifts from him. Nick tells her that he's given her space. Can't they just call a truce for tonight? Sharon tells him she can't turn her feelings on and off like a faucet.
Cassie asks if Nick is going to be there in the morning. Nick looks at Sharon who looks away. He tells her he's not sure. Cassie thanks him again for the present and wishes him a merry Christmas. Sharon leaves them and goes to the kitchen. Nick takes Sharon's gift out of the bag and leaves it on the end table beside the couch. He winks at Cassie. She smiles and winks back. Nick leaves. Later on, Cassie makes a big production out of finding Nick's present to Sharon and begs to open it. Sharon finally agrees to let Cassie open it. Cassie looks at the card and reads, "To my wife, the window to my heart." Sharon looks away. Cassie tears into the package and finds that Nick has had her picture of their family professionally framed. She is all excited and exclaims, "It's in a frame, like a real artist's picture." Cassie looks hopefully at her mother and Sharon's eyes brim with tears. She looks like she might be having second thoughts.
NICK comes back to the main house obviously upset. He tells Neil that Sharon wanted nothing to do with him. He's beginning to think it's hopeless. Nikki, back from the kitchen, asks where Victoria is. Neil tells her that she went to invite Cole to eat with them. Miguel comes out and tells Nikki that he needs to serve dinner soon. She asks him to wait for Victoria to return and to please set a place for Cole. She wonders if she should call down to the tack house and check on them. Neil says that Victoria probably is waiting for Cole to finish up some writing. Nikki says she's pushed Miguel's patience to the limit. Victor laughs and tells her that Miguel is used to their musical chair antics by now. While they wait, Nikki tells them she'll play "Santa's Helper" and passes out a gift to each of them. Neil thanks her but looks a bit concerned and sneaks a peek at his watch.
MICHAEL is reading a Christmas card from Phyllis, who is in Aruba. "Michael," he reads. "Having a wonderful trip. Quite hot, but when you get here, it will be a lot hotter. Looking forward to seeing you, Phyllis." He puts the note aside with the plane ticket and says that he's not interested. GRACE shows up to have dinner with Michael. He tells her how beautiful she looks, but Grace is obviously down. He wants to know what's wrong. Grace tells him that she doesn't want to burden him. Michael says he'll be glad to listen. She tells him that this is a story of "a friend of a friend," but ends up telling Michael the story of Sharon, Cassie, and Alice, unbeknownst to Michael. He keeps interrupting her and she asks if he's interested in hearing the story. He apologizes and seductively tells her that he has this bad habit of "anticipating." For instance, he's anticipating what the two of them will do later on tonight. Grace blows him off by continuing with the story. When she asks what could happen, Michael tells her that, barring REALLY extraordinary circumstances, the adoptive mother has legal rights to the child. If she shows up, there could be real trouble. Grace is concerned with the information that Michael has given her.
MALCOLM, OLIVIA, and NATE are having Christmas Eve dinner at Gina's before heading off to church. Gina asks Nate if he's saved room for dessert. Nate would like a chocolate horse, but Gina is out of them. She offers him chocolate double fudge cake instead and has Malcolm take him back to the kitchen to get it. While they're gone, Gina takes the opportunity to mention to Olivia that she's noticed her looking around the restaurant tonight. Callie's not here, she tells Olivia. Olivia is relieved. Gina tells her that even if Callie was there, she doesn't think anything could ruin what Olivia and Malcolm have. Olivia tells her that it seems everyone has gotten what they want for Christmas -- Callie has a shot at the big time and Olivia has her husband and her family back. She smiles with confidence.
AL is celebrating Christmas Eve by watching a comedy, eating a bag of microwave popcorn, and drinking a can of cheap bear. ALICE comes in, complaining about having to ride the bus from Genoa City. She doesn't think that Grace is being truthful with her. Al tells her that she struck out -- she didn't come back with the kid and she didn't meet her dream man, Victor Newman. Alice tells him to shut up. Al tries to smooth her ruffled feathers by telling her he missed her. Alice tells him she knows exactly what he missed. Al reminds her that she is his little love-bundle. Alice tells him that she's not through with Grace Turner by a long shot.
CARL'S flight lands in Genoa City. He calls RUTH on a payphone and tells her that he did what Paul suggested. He's walked the streets and visited the neighborhood stores. He even went by the police precinct, but there's nothing familiar to him. Ruth is so relieved. She asks when he's going to come home. He tells her that he's going to be there as soon as he can book the next flight out. When he hangs up he hears organ music coming from a nearby church. Suddenly his mood changes and he states, "It is Christmas Eve." He heads over to Church of the Sacred Heart.
MARY AND CHARLIE have made last minute adjustments to the floral arrangement at the front altar. The church is absolutely exquisite. Every pew has a hurricane lantern on its corner and inside the lantern is a red candle. At the front of the church are two brass candelabras with red candles and decorated with holly. The walls of the church are adorned with wreaths, which have large red bows attached to them. Candlelight fills the church, giving it a warm glow.
NINA, RYAN, and PHILLIP come in soon followed by Malcolm, Olivia, and Nate. Phillip is amazed at how beautiful the church is. He sees Nate sitting between his parents and assesses his own seating arrangement. He asks Nina to trade places with him. When this is done, Phillip is now sitting between his parents. He takes the hand of his mother and then of his father. They all exchange loving glances. Chris and Paul enter and Carl sees them. "There he is. The Williams' kid," mutters Carl. "What if he is my son?" The usher tries to seat Carl near the front, but he sits at the back instead. He keeps a close eye on Paul. He sees him kiss Mary and shake Charlie's hand. He knows that the woman Paul is talking to must be his mother -- the woman Paul says is Carl's wife.
The choir enters while the organist plays "What Child is This?" The choir and the congregation sing "O Come All Ye Faithful" as the acolytes and the priests march the processional down the aisle. The priest welcomes friends, old and new, and invites everyone to share in the worshipping of the birth of the Christ Child. The choir sings "Joy to the World." Chris leans toward Paul and tells him this is her favorite hymn. Paul shares that it was his father's favorite as well.
As the priest lights the candles on the altar, Carl watches the flame. It intensifies and in a flash, he sees himself as a much younger man with Mary and Paul and Patty as young children. The memory frightens him so badly that he rushes out of the church. He stands in the churchyard, looking up toward the sky. The memory flashes back to him, this time more intense and more vivid. Carl looks very confused and frightened. He rubs his hands through his hair in disbelief, as strains of "Silent Night" flow out of the open church doors. Inside Chris, Paul, Mary, and Charlie hold hands as a family and enjoy the music of the choir.
COLE is in a foul mood and goes hunting through several drawers looking for something when he finds a gift box. He stares at it. Victoria finds him like this and invites him to the house for Christmas dinner. Upon further notice, she sees that he's crying and asks if something's wrong. He tells her he just has something in his eye. She says if there's something in his eye, then she needs to take a look at it. She asks, "What is it?" Cole says it's nothing. In his hands, Cole holds the gift he found. Victoria sees that it has her name on it and insists on opening it. Inside is a white porcelain rocking horse Christmas ornament painted with baby blue and pink ribbons. Across the bottom is inscribed, "Baby's First Christmas." Cole explains that he bought it back in September for Eve. He starts to put it away, but Victoria clings to it, with her hands pressed against her chest. She begins to sob. Victoria tells him that Eve would have loved it. Cole tells her that it just wasn't meant to be but that Eve will always be a part of them. Victoria tells him that the only time she's able to let her defenses down is when she's with him. He caresses her check with his thumb. He admits that the same is true for him. He cups her tearful face in his hands and they begin to kiss tenderly and passionately. They look at each other and their kiss deepens.
Due to the Christmas holiday, The Young and the Restless did not air an original episode today. Broadcasting will resume on Monday where Thursday's show concluded.