Diane suggested that Kyle, Graciella and herself move into The Abbott house, which woukd enable Diane to look for a new job and residence without forcing Kyle to grow up in a hotel. It would also give Jack a chance to bond with Kyle. Jack suggested he rent Diane and Kyle a house in his neighborhood, but Diane thought that was no better than a hotel. So Diane dangled the Tokyo job in Jack's face to get him to let Di, Kyle and Graciella move in. Jack told Diane if she move to Japan it will effectively cut off any chance of a relationship with Kyle except for 1 block of time in the summer. Diane reminded Jack she came up with the only working solution (to move in), but Jack rejected it. Jack says the solution is not workable because of Phyllis! Diane reminded Jack that he said he would keep Phyllis in check during visitation or Phyllis would not be there during Kyle's visit. Jack said visitation is not an issue, but that is Phyllis's home too! Living with them (Jack and Phyllis) is not option! Diane claimed the move would be a wonderful opportunity for Kyle, living in a different culture, besides Jack was being very loyal to Phyllis, but Phyllis wasn't loyal to him. Jack defended Phyllis and told Diane to stop trashing his wife, she went through hell on the stand, for him! Diane wouldn't give up and told Jack, Phyllis tried to get her out of the country so he couldn't bond with Kyle. Diane went on to tell Jack everything about Phyllis's plan but Jack wouldn't believe her, so to convince him, Diane told Jack to "imagine me in a red wig with Phyllis's clothes, and her in a wig with my clothes"! And to remember how shocked Phyllis was to see Diane in court, because Phyllis was already convinced Diane was back in Milan. That is when Jack remembered Phyllis in a red wig at Gina's!! With a smirk on her face Diane said she took no pleasure in tattling on Phyllis, and she never intended on telling Jack, but he left her no choice when he didn't believe her and that his opinion means a great deal to her. Jack just stood there with his mouth open and a shocked expression on his face.
Michael went to see Phyllis about Diane's plan to stay in town and take her man. Phyllis wasted no time in calling Michael a "pathetic little man, who look and act strong and independent! Must be hard work keeping that illusion alive. You don't have a loyal bone in your body!" She also called him a breathing, living dummy whose strings are being pulled by Christine. She also called him a "pathetic excuse for a human being". She blamed the court debacle on Michael! Phyllis thought Michael crucified her on the stand to impress Christine. Michael still tried to help Phyllis by telling her Diane was after Jack. Mike told Phyllis, Diane claimed she lost her job and is not leaving Genoa City. Phyllis doesn't believe Diane is any competition. She said Michael should hear what Jack has to say about Diane and that Jack hates Diane. Phyllis said she has nothing to worry about, because Diane tried to the same thing with Victor and look where that got her. She said Diane has no clue! Phyllis said, she's going to win and Diane's going to lose. She then told Michael to get out. After Michael left, Phyllis sat at her desk looking worried....
Jack showed up at Phyllis's office and said he had a proposition for Phyllis regarding Kyle....and Diane.
Chris arrived at the office to find out Alex had resigned. Chris said when she didn't see Alex, she thought they just missed each other. Alex left a note saying her goodbyes and letting Chris know, the rent was paid up for a few months and Chris could stay there. Chantal said it was a sign that Chris should stay and that they ALL would love to have Chris back for good, but Chris flashed back on Paul in the hospital begging Isabella to stay alive for the sake of the baby. Kathryn stopped by to report to Chris that she talked to Paul and Isabella is out of the woods, therefore she and Paul could finish what they started. Chris said since Sharon and Nick were reconciled she had no commitments and could go back to Australia. Kate told her she could go to Timbuktu, but she needed to finish her conversation with Paul. Kate told Chris to focus on her reasons for staying. Kate says there's a baby, a mother and perhaps a relationship, but, bottom line, Chris and Paul were discussing their relationship and future, finish it and don't let anything stop them or stand in the way of them finishing their conversation. After Kate left, Chris flashed back on Paul kissing her...
Paul was distracted. But Isabella was on cloud nine saying she and Paul were going to be terrific parents, especially since she and Paul were so close and had found their way back to each other. Paul was about to explain his mood to Isabella , but there was a knock at the door. Grandma Mary showed up to see the baby. Isabella was ecstatic that Mary showed up. Paul was happy too. The nurse showed up with the baby. Mary held her grandson for the first time. Isabella asked Mary's opinion on the baby's name and wanted know what she thought about naming the baby Carl, after Paul's father. Mary was unsure. Isabella gave Mary a standing invitation to visit the baby anytime at "the apartment". Mary thanked her and left. Isabella felt things had changed since Mary made the effort to see the baby. Paul went to check on Isabella's release and found Mary waiting to speak with him alone. She remarked on Paul's love for the baby, but his lack of interest in Isabella. She said he was holding back. While Isabella constantly used "we", Paul barely said a word. Mary said she knew Chris was in town and asked Paul was he wishing the baby was Chris's baby! Without another word Mary left. The nurse told Paul he had a call on the courtesy phone...
It was Chris! She asked Paul to meet her.
The Coffee House/ The Islands
Nick and Sharon wanted to call home and speak with Nikki to found out how the kids were. Diego had just asked Nikki how Sharon and Nick were doing when Nikki's cell phone rang and the happy couple was on the phone. They spoke with Cassie, who could tell they were back together because they both sounded so happy. After confirming her parents were back together, Cassie and Nikki hugged and laughed to celebrate the reunion. Cassie was ecstatic. Diego was not! Cassie asked Nikki if they could have a party to celebrate the reunion and her parents return. Nikki didn't think they had time but to Diego's surprise, Cassie asked him to help. Diego couldn't say no, so the planning started. Nick mention to Sharon that it sounded like Nikki and Cassie were at the Coffee house and everyone would know they were reconciled by the time they got back. Sharon looked uncomfortable. Nikki told Victoria about the reconciliation and the party. Including Diego helping out. Victoria wasn't too happy. The party plans looked great and Victoria expressed how she wanted to help all to Diego dismay. Cassie wanted to call and get Miguel's help. Victoria kept a wary eye on Diego and walked up on him daydreaming about Sharon. Victoria remarked on the good news and Diego's help with the party. She said since he was a good friend with Cassie's Mommy and Daddy, his support and goodwill towards them will be strong as ever when they returned. Victoria said she's counting on it!! Sharon and Nick discussed going home. Nick said he hoped Cassie and Nikki would spread the word and everyone who was rooting for them, including Diego would know they were back together. Nick went looking for coconuts. Sharon had a flashback on her night with Diego and feeling guilty ran off to find Nick. Victoria said her goodbyes and gave Diego the evil eye on her way out.
When Nikki went to pay the bill Diego said he would be giving her his notice....
Ashley came downstairs looking devastated. She found another lump! With tears in her eyes, she asked Brad why was this happening to her. Doctor Nora said Ashley was right. There is a lump that was not there before. Brad asked if it could be a cyst, the doctor said maybe, but they should go to the next step. An ultra sound was arranged. When Ashley returned to Brad, after the ultra sound, she said the doctors were really quiet and just staring at the screen. Brad told her to be positive. She said she would be optimistic even though it didn't help last time. The doctor came in and explained that there was something there – something that needed to come out.
Paul and Chris discuss their future together. He wants to try to work it out but Chris tells him that she must have given him the wrong impression.
Island: Nick and Sharon prepare to return home. Both are apprehensive about returning for fear that the magic they recaptured will be lost back in GC. They find a camera and have some lighthearted fun before going home.
Nikki is shocked that Diego is giving his notice. She thinks it's just his wandered nature. When he later tells Raul, his brother becomes very upset at his brother for abandoning them again.
Diane visits Isabella and they talk about the baby and who great Izzy's life is right now. SHe's sure that everything with Paul will work out now.
Lauren's back from a trip and bumps into Mary who's more than happy to drop a little bomb on her: Christine's back. Lauren is stunned but doesn't see how that impacts her. She then chides Mary from butting in where she doesn't belong once again.
Jack can't believe Diane would even suggest having her move in, even to the pool house. It's unworkable. She sees no viable alternative as she doesn't want to live anywhere with the baby by themselves in GC if she has no good job. She then drops a bomb by revealing to Jack Phyllis' part in trying to get Diane and Kyle out of the country.
Jack later tells Phyllis about Diane's plan which Phyllis torpedoes. Jack then asks her if what Diane said was true. He demands an answer.