Eric Forrester visits Michael after his phone call about Lauren. Michael asks Eric to tell him everything he knows about Sheila. He says that he wants to protect her. Eric tells Michael that he and Lauren are safe, Sheila has been locked away in a mental institution.
Lauren tells Gloria that she doesn't want a big wedding. Gloria doesn't understand. Lauren says she will try to get Gloria and Kevin a flight to Hawaii for their small wedding, but she's just not up to the big wedding plans. Gloria takes her story with a grain of salt.
Nick tells Sharon that he's going to pick up Noah but he won't be late for the court date. Sharon tries to talk to Nick about Cassie's clothes, but Nick doesn't want to talk about it. She wonders what he did with the clothes, did he destroy them? Sharon is worried that they will be charged with obstruction of justice. Nick doesn't seem to care.
Detective Weber shows up at the Newman ranch after Nick has left. He has a warrant to search the property. Sharon tries to call Nick, but he doesn't answer. Weber informs Sharon that they have evidence stating that Nick picked up Cassie's clothes.
Daniel tells Chris that he's worried about his mother. He is afraid that he's going to jail for a long time, and is unsure how she will cope with this. Chris tries to tell Daniel to be strong for his mother, she will do everything humanly possible to get evidence for Daniel.
Weber calls Christine to tell her that they didn't find anything. Chris is worried.
In Scott's apartment for a tutoring session, Sheila shared one of her story ideas with him. The story she told was basically an account of her past with Lauren, when Sheila tried to take Dr. Grainger from Lauren and kidnapped Lauren's baby. Only in this version, Sheila changed roles with Lauren, making herself look like Lauren's victim. When Scott said it sounded like Sheila was talking about real people, Sheila said it had happened to someone she knew. She wasn't ready to make a novel of it, so she freely offered the idea to Scott, saying, "It's your story." Scott had no idea that she was telling him the truth with a few embellishments.
Kevin found Christine in Michael's office doing some last-minute preparation before Daniel's trial. When Kevin asked where Michael was, Christine said he'd gone out of town and should be back the following day. Lauren came in and overheard her, but Christine had no more information to give her. After Christine left, Lauren called her son, but Scott said he hadn't heard from Michael. Lauren then went to Michael's computer, hoping his history trail would tell her where he was. But his computer needed a password, so instead she glanced at the papers on his desk, finding printouts of news stories about Sheila Carter. She frantically demanded that Kevin explain what was going on, and Kevin said Michael had wanted to know what had Lauren so frightened and how he could protect her. Lauren said the only way to be safe from Sheila was to stay far away from her. She couldn't believe Michael had ignored her request that he stop digging in her past and hoped that he was okay.
At the mental institution in Hemet, California, Michael questioned the warden about Sheila's condition. The warden told him that Sheila had escaped, but later she'd come back and turned herself in. Since then, she'd been under heavy sedation. Michael asked to see her. When the woman they thought was Sheila was brought to him, Michael scrutinized her. She did look like the woman in the pictures, so he thanked the warden and left.
Lily was at the athletic club spa with Devon when she got a call from Daniel, who pretended to a police officer that he was calling his attorney. Lily apologized for not being in court, but Daniel said that he understood. He knew she was on his side. After they hung up, Lily begged Devon for his help. She wanted him to go to the courtroom and offer Daniel some signal of support so Daniel wouldn't feel alone. Devon refused, saying that he was supposed to begin a new job that Neil had gotten him at Newman Enterprises. Lily told him to make an excuse and start a day later, but Devon wouldn't give in to her.
Victor and Nikki went to Nick's house to find Sharon trying to straighten things up after the police had searched for Cassie's clothes. When Sharon explained what was going on, Victor said that Nick and Sharon should just cooperate with the police, especially if the evidence Christine was looking for wouldn't be provided by the clothes. Sharon was telling them that she thought Nick would go out of his mind if Daniel wasn't convicted when Nick walked in. Again, Victor said they should cooperate with the police, but Nick said he wasn't going to help Christine come up with some bogus defense of Daniel. He told his parents that they didn't need to come to court. He and Sharon knew they supported them, but Nikki needed to recover from her recent ordeal with the mob, and Victor should stay with her. When Nick went upstairs to get ready, Sharon repeated her conviction that Nick was hinging everything on Daniel's conviction.
Phyllis and Jack were sitting in the empty courtroom. He noticed her anxiety and suggested they take a walk, but Phyllis said she wanted to stay there and put good vibes in the courtroom for her son. When Glenn Richards came in, Phyllis accused him of ignoring evidence in Daniel's case, or allowing Nick to hide it, because he was out to get her and could only do it through her son. She said he was taking pleasure in sending an innocent teenager to prison. Glenn said that when someone drove drunk, as Daniel had, he became an adult. He warned Phyllis that if she continued to badger him for doing his job, he could ask the judge to remove her from the court. While he was chastising her, Christine and Paul came in, and Christine gave Phyllis a warning look. Phyllis and Jack stepped out of the courtroom for a few minutes. She urged Jack to go to work; she could call him on his cell phone if she needed him. Jack reluctantly agreed when Phyllis promised him that she'd be okay.
Paul asked Christine how she was feeling, and she admitted that she was nervous. She'd never started a trial with such a weak defense. She wondered if her feelings for Daniel made her the best choice for his attorney. Paul assured her that she'd do fine. After Paul left, promising to keep searching for evidence, Nick and Sharon came in. Glenn Richards assured them that even though this was a bench trial instead of a jury trial, Daniel was not going to get away with what he'd done.
Phyllis saw a disguised Lily walking into the courtroom and hurried inside, blocking Glenn Richards' view of Lily. She told Lily that her presence was not only violating her bail conditions, but she could damage Daniel by being there. Having Jack, as a strong businessman in the community, on Daniel's side carried some weight. But having Lily there, who'd not only helped Daniel jump bail but had since gotten into trouble again herself, was not in Daniel's best interest. While they were talking, Daniel was brought into the courtroom. He spotted Lily and mouthed that he loved her. As much as she hated to leave, once Lily knew that Daniel had seen her, she left the courtroom. Glenn and Christine made their opening statements to the judge while Sharon listened with tears in her eyes and Nick glared at Daniel.