In the Jabot boardroom, Jill cornered Jack about his trip to California and the fact that he'd followed Phyllis. Jack told her in no uncertain terms that he and Phyllis had a relationship, and she had better get used to it. Jill left with Sean to go to the Glo by Jabot house. Before Brad left, Jack asked Brad about Colleen staying with him and Ashley. Brad assured Jack that everything was fine at home then he left.
Nikki asked Jack what had really happened in California. Jack told Nikki that he and Phyllis were engaged. He also told her about Phyllis' reluctance to have children after her experience with the custody fight with Danny.
With her grandfather, Colleen returned to the Carlton house from her dance lessons. When John left, Colleen was looking for something and found Abby's adoption papers. When Ashley returned home, Colleen asked her why no one had told her that Abby was not really her sister. She told Ashley she understood that Abby was just her cousin and not her half-sister as well.
After Colleen went upstairs, Traci called and told Ashley that she wanted to take Brad up on his suggestion that she make a short visit. Brad got home, and Ashley told Brad that Colleen knew about Abby's adoption and that Traci had accepted his invitation. Ashley told Brad that it would have been a good idea for him to run it by her first before extending the invitation. Brad told her that it had been Colleen who'd made the suggestion first.
At Newman Enterprises, Phyllis reported to Victor the progress on the Brash & Sassy website. Victor questioned her about her relationship with Jack. Victor told Phyllis that Jack was an adversary in more than business, and Victor did not trust him. Phyllis told him that he could always fire her. Phyllis told Victor that she had done a good job of separating her business from personal life.
At the Glo by Jabot house, Raul gave Rianna the cold shoulder after she disclosed the truth about her and J.T. When Sean arrived, Billy asked him to be very careful when watching the tape of the day's happenings because some very personal things had transpired. Billy also asked if the barbecue could be postponed. Sean denied his request because he told Billy it had been postponed once, and they needed to proceed according to plan.
J.T. cornered Mac and told her he'd apologized to Rianna like she had asked, and everyone was still treating him like a jerk. J.T. asked Mac if there was anything about Rianna that he did not know. Brittany went to J.T. and told him that she assumed that she had been right about Rianna still having feelings for him. Brittany told J.T. that she wouldn't wish that on anyone. Sean started the webcast, and he told the kids whatever happened, it happened because it was a live webcast. Brittany looked directly into the camera.
At the doctor's office, the doctor confirmed that Sharon was past her first trimester. Nick and Sharon told the doctor about Sharon's trauma while Nick had been in jail. The doctor told Sharon that she still might need counseling. Sharon said all she needed was her family and that she was fine.
After returning from the doctor's office, Nick and Sharon told the kids that they were expecting a baby.
At home, Ashley and Brad talked about Colleen's idea to invite Traci to Genoa City. Brad thought it was nothing more than a nice gesture for her mom, but something about it seemed off to Ashley. She put her doubts aside and went for a walk. Colleen called Granddad John and asked questions about Traci and Brad's marriage and why they had broken up. John told her that they had always gotten along well, had many wonderful moments, and treated each to her with respect even after the divorce, but any more questions should go to her mom. Later, Colleen and Brad talked about her finding Abby's adoption papers and why they hadn't told her right away. Ashley entered just as Colleen asked about Abby's real father.
Ashley stopped by Victor's office, looking for Victor. He walked in after a jog, and they talked about her illogical insecurities concerning Abby and Traci. He told her not to dismiss her instincts but to listen to them. She thanked him for his advice, and he told her that she'd always be special to him.
The Glo kids were having a barbecue at the pool house, but there was a definite tension in the air despite Brittany's and J.T.'s attempts to keep things business as usual. Raul, in particular, was in a bad mood. Rianna tried to talk to him, but he gave her the cold shoulder. Billy asked Sean to not include any of the Rianna/J.T. stuff on the Web, but Sean seemed unresponsive, so Billy went to his mom to pull rank.
Jill agreed to speak to Sean, who told her he wouldn't upload the personal stuff. She was relieved she didn't have to pull rank, which he claimed wouldn't have worked. He was irritated that they had to continue to hide their relationship. Jill then proceeded to tell Billy about them. Billy was a little weirded out over it.
In the Abbott home, Jack and Phyllis planned their engagement announcement party. He suggested the Colonnade Room, but she thought it was too formal and impersonal. She'd prefer the Abbott living room, which he agreed to. He tried to reassure her that once they were married, his family would accept the relationship. As they kissed, she got a weird pain but told him it had passed. Clearly, though, it worried her.
Victor and Nikki shared breakfast together. Victor was concerned about Victoria's welfare because of Tricia Dennison. Nikki wondered about the sudden alarm. Victor said he "wants a surveillance on Tricia Dennison, day and night." Because of Paul's marriage situation, he was unable to take the job as private detective. That caused concern for Nikki, as she had spoken to Paul the day before about his situation with Christine. What Nikki didn't know was that Christine had filed for divorce.
Nikki was concerned about Paul's well-being and paid him a visit at his apartment. Paul mentioned that Victor had been chatting with Christine at Gina's a few days before. Paul replied, "I never saw my wife." Paul then realized Christine had probably stopped by the apartment to see Paul and had caught Paul "making love" with Isabella.
Isabella was staying with Mary Williams for the time being. Isabella wanted to leave Genoa City because she wanted "not to get my hopes up anymore…and I'm not sure I can handle any more disappointments" if there was a chance of a relationship with Paul in the foreseeable future.
Nikki asked Paul where Isabella was. Paul replied, "I think she's left town, and I don't know where she is." Mary stopped by Paul's apartment to talk to him.
It was the court date for Malcolm and Olivia. Nate's babysitter, Julia, arrived to distract Nate while Olivia was in court. Before the proceedings started, Mamie and Neil walked in, and Alex, as well, for support for Malcolm. Michael questioned Mamie about Malcolm's judgment as a parent. Mamie admitted she'd helped Malcolm in getting together with Nate behind Olivia's back but stood firm that Nate idolized Malcolm. If Nate was cut out of Malcolm's life, Nate could grow up to be a bitterly confused child with total resentment to his mother, possibly for the rest of his life.
Mamie agreed Nate needed a role model in his life and felt Malcolm was a good choice for that. Michael explained that Malcolm had had a girlfriend living with him, who had caused problems in his life, but "the girlfriend has since moved away and from his life." Mamie admitted, "The relationship is good for the boy," meaning Malcolm and Nate's relationship as father and son. Michael asked if Mamie had taught Nate to lie. Mamie replied, "Children lie to protect themselves." Mamie admitted, "Malcolm didn't have to persuade either of us."
Michael badgered Neil about Malcolm's past as a child, but Neil admitted Malcolm had made mistakes, like any normal human being. Neil did admit Malcolm had made huge progress since his childhood and felt Malcolm was a suitable parent for Nate. Neil admitted he had tried talking to Olivia about what harm it was causing Nate and felt he hadn't succeeded. "Nate doesn't know where to turn. He is angry with the situation," Neil said. For Michael Baldwin to hold onto his case, he hand-delivered Alex a subpoena to appear as a witness.
Mac and Billy had the day off from the Glo by Jabot house. Mac told Katherine that Billy had found out Jill and Sean were dating. Billy was having a hard time dealing with the new relationship. Katherine advised Mackenzie not to involve herself in Raul and Rianna's affairs. Katherine was afraid it could ruin Mac's happiness with Billy. Billy stopped by the Chancellor estate to propose taking Mac out on a date. Ever since they had gotten back together, Billy hadn't had the chance to take Mac on an exclusive date, just the two of them.
Ashley felt she wasn't comfortable with having Colleen living with them. Brad told Ashley, "I've been wanting this for a long time, to have a relationship with my daughter, and now you're throwing that away." Ashley thought, "Brad being more in Colleen's life is going to confuse her." Brad didn't understand why Ashley "wants to ship Colleen back to her father's." Ashley said, "You see yourself having a different role in Colleen's life."
Billy went to visit Mac on the morning of their day off. She had been talking to Katherine about how troubled Raul and Rianna were and about Billy learning of Jill's relationship with Sean. Billy still had something that bothered him about his mother but wouldn't share it quite yet. They made plans for a fun date to get their minds off of things.
Ashley and Brad discussed the situation with Colleen further, adding fuel to the fire of their argument. He admitted that it was something that he had always dreamed of -- having a relationship with his daughter. Ashley said that proved her point -- if she stayed with them much longer, it could take away from what Colleen had built with Steve and not be healthy for the girl. Brad continued to disagree. The baby cried, and Ashley ran to take care of her.
Victor shared breakfast with Nikki, and they talked about Christine filing for a divorce from Paul. They hinted that they could relate to the situation, but didn't really want to be apart. Victor held her close and kissed her on the cheek before leaving the ranch house.
Paul was thinking about his evening with Isabella when Nikki paid him a visit. She told him that she had heard, and she wondered how things could have changed so quickly. He admitted that he knew what had to have happened -- Christine had been in the apartment the night that he'd made love to Isabella.
Mary Williams tried to convince Isabella that she should see Paul one more time before leaving town for good. Isabella was being stubborn -- whether the reason for him shunning her was that he wanted his wife back or that he had found out about her past, she didn't think she had a chance. Mary offered to talk to her son and was soon at his doorstep. She told him that she knew what he was going through, and that was why she was there.
The hearing began after Olivia forced Nate to leave the courtroom with the sitter. He had run to his father and hugged him, asking him if they would ever see each other again. Malcolm said that he hoped so. The attorneys made their opening remarks, and Mamie was the first witness called.
While Malcolm's attorney focused on Mamie's thoughts about the boy's relationship with his father, Michael Baldwin kept asking if she thought that Malcolm was a good influence on Nate. He wanted the judge to know that Mamie and Malcolm had taught the boy to lie to his mother in order to sneak around and be with his father. A similar scenario happened when Neil was called to the stand.
Before his attorney called Malcolm, Michael asked the judge if he could do something -- he had written up a subpoena for Alex Perez. He handed it to her and told her that he was calling her as a witness.
In the courtroom, Malcolm was called to the stand. He went over his successful business and explained how much he loved Nate. He admitted he'd made mistakes but stated that every parent did. At least he was making an effort and he cared. Michael asked about why he had felt it was okay for Nate to lie to his mother. It agitated Malcolm to the point where he screamed at Michael. He explained his anger over Olivia's delays, and Michael challenged that Malcolm took parenting into his own hands, ignoring Olivia's rights as Nate's mother.
Michael then questioned Alex and her relationship with Malcolm. He asked what she'd told him when he'd mentioned taking Nate to the ballgame. At first, he'd listened to her, but then he'd ignored her sound legal advice. Olivia took the stand next and explained what a bad influence Malcolm was on Nate, both with Callie and Drucilla. Malcolm continually blamed others for his mistakes and proved himself over and over as a bad influence.
Olivia said she'd acted within her right legally and had been seriously undermined in her plan to let Nate move on by Malcolm's sneaking around with him. She also explained the number of times Malcolm had let Nate down for his own self-interest. Nate reached out to Malcolm as a father simply because there were no other male figures in his life. That was not enough reason to continue visitation. Malcolm's lawyer asked about Olivia's plan to replace Malcolm with another male influence.
Michael wanted to call Nate to the stand, but Olivia preferred not to. Malcolm didn't want to call him either. The judge wanted to hear from Nate, though, and asked Olivia to take him as soon as possible.
Mary stopped by Paul's apartment to talk to Paul about Christine serving him divorce papers. He didn't want to talk about it and asked her to leave. She said she would but asked about Isabella first. She was gone, he explained to her. Mary asked about the dark secret he had uncovered about Isabella. Mary wondered if that was what had pushed him away. He said it wasn't. He also suspected that Mary knew where she was.
Ryan and Victoria stopped by Gina's for a bite. Isabella entered and spotted them. She went up to their table and reintroduced herself to Victoria. She remembered her from the Fourth of July barbecue. Victoria invited her to join them. She asked Isabella how the case was going and wasn't surprised to hear that Paul had solved it.
Isabella said she hadn't made any plans yet. She asked about the Newman family connection to Paul and Christine. She asked if they knew anything about Christine's plans. Ryan and Victoria sensed that she seemed too interested in Paul and Christine's marriage. Isabella returned home and found Paul waiting for her.
Billy and Mac went out for a picnic in the park. He reflected on how far they'd gone to get where they were and all the circumstances that had led to them meeting. When Billy mentioned Raul, it reminded them of the tension between him and Rianna.
Raul stopped by Crimson Lights for a coffee, and Cody asked about Rianna, but Raul didn't want to talk about it. Rianna saw him and wanted to talk, but he was unresponsive. He started to leave but turned and watched her from a distance. He went back and told her he couldn't talk right then but relented. She had kept it from him because she had been ashamed.
Raul was angry because he'd thought they'd share their first time together. Rianna knew she shouldn't have slept with J.T. but she'd thought he loved her and promised that when it was their time, it would be special. He still saw the hold J.T. had on her, and he stormed out. Later, Billy and Mac stopped by and talked with Rianna about Raul. She couldn't continue anymore and wanted to quit the Glo house.
Ashley and Jack talked at Jabot about the Glo sales numbers compared to Brash & Sassy's. Ashley was in a mood, which Jack attributed to problems with Brad. Brad arrived, and Jack changed the subject to the party he and Phyllis were throwing. Jack sensed the tension and asked about it, but neither wanted to say anything.
Sean and Jill interrupted Jack, Ashley, and Brad. Jack asked if they were attending his and Phyllis' party. Sean was in, but Jill was skeptical. Sean changed the subject to Raul and Rianna. The viewers had picked up on the tension, and the number of hits to the site had doubled. Later Jack asked Ashley about the problems in the marriage, and she gave him a big hug but didn't talk about it.