After Chloe learned that Billy was about to interview applicants hoping to become Lucy's nanny, Chloe insisted on having the option to approve Billy's selection because Delia often stayed at Billy's. At Kevin's apartment, Jana seemed crushed when Kevin asked her to find another place to live. Kevin pointed out that Jana had become a stronger person and could thrive on her own. Jana complained that she lacked a sufficient income to support herself, but she refused Kevin's help. Chloe arrived as Jana was leaving. Jana said aloud to herself, "Chloe is so wrong for you, Kevin, and I'm going to prove it."
During the interview process conducted at the magazine office, Billy was disappointed to discover two immature candidates and one hard-nosed woman who claimed it was best to rule with an iron fist. Jana showed up and asked Billy to interview her for the position. Jana assured Billy that she suffered no ill effects from her recent bout of memory loss. Jana added that she needed a position with better pay because she was moving out of Kevin's apartment and was ready to begin a new chapter in her life.
Later, Billy took Jana home and told Victoria that Jana was the best choice to become Lucy's nanny. Jana told Victoria that she was ready for a fresh start and a new place to live. Victoria initially seemed a bit hesitant when Jana eagerly accepted Billy's offer to live in the garage apartment. Jana squealed with delight when Victoria agreed that Jana would be a wonderful nanny for Lucy.
Later, Victoria told Billy that Nick had decided to support his sisters in the lawsuit against Victor. Billy told Victoria that Victor would finally get what he deserved. Victoria seemed unconvinced and worried that Nick could back out because her brother had succumbed to Victor's rhetoric in the past.
Chloe relished spending time with Kevin in his apartment. Kevin told Chloe that Jana had seemed to take the news well. Kevin assured Chloe that Jana was history. Chloe was elated because she and Kevin could finally enjoy themselves without having to worry about Jana's interference.
While Chloe and Kevin were necking on the sofa, Jana barged in and cheerily announced that she was about to move into Billy and Victoria's garage apartment because she had been hired as Lucy's nanny. After Jana left, Chloe cried, "If she's not hanging around my man, she's hanging around my baby. She's never going to go away." Kevin seemed concerned.
During arbitration, Victor and Michael were shocked to learn that Nick had joined his sisters as an additional plaintiff. The judge ordered the attorneys to handle the matter after Nick admitted that his father and Michael had not been given prior warning of Nick's change of allegiance. In the hallway, Michael listened as Victor insisted that his children were ingrates who had no idea what their father had sacrificed in order to build his company from nothing. Victor told Michael that he and Nick had argued and that Nick had not liked what his dad had said.
In the conference room, Nick told his sisters that he'd suddenly decided to join them in their lawsuit against their father. Leslie explained that she hadn't mentioned Nick's involvement to Abby and Victoria just in case Nick decided to back out at the last minute. Leslie told Victoria and Abby that she couldn't promise that they'd win, but she agreed that Nick's involvement had strengthened their case. Nick told his sisters that he'd joined them because it was time for their dad to stop calling the shots in his children's lives.
After arbitration reconvened, Michael argued that Leslie hadn't informed him about the additional plaintiff. The judge ordered both attorneys to clear their schedules and deal with the matter. Before the judge left, he told Michael and Leslie that they'd hear from his office about a time and date to reconvene. Victor asked to speak to Nick, but Michael whispered to Victor that the conference room wasn't the proper place to converse with his son.
Michael later admitted to Victor that having Nick join the lawsuit was a serious blow because Nick could have disputed Victoria and Abby's claim that Victor had attempted to dispose of assets during the Dubai debacle. Michael was angry that Victor refused to discuss the reason Nick had joined his sisters. Michael advised Victor to get Nick back on his side or encourage his son to back out of the case altogether.
Michael later joined Abby at Gloworm and told her she had seemed particularly saddened during the arbitration. Abby's lower lip quivered when Michael mentioned that he was sorry that it was the anniversary of Brad's death. Michael added that it must be exceedingly difficult for Abby to realize that she could also lose Victor. Abby tersely reminded Michael that she wasn't just a dumb blonde.
Abby blasted Michael for using her father's death to make her second-guess her participation in the lawsuit. Michael calmly replied that he simply wanted Abby to know that losing a parent forever was devastating. Michael asked Abby if winning would be worth the sacrifice of having no one with whom to share her joys. Michael suggested that Victoria and Nick had their own goals and likely would not support Abby with what her siblings termed were "Abby's antics."
Michael advised Abby to concentrate her energies on reconciling with Victor, with whom she had shared the most meaningful relationship of her life. Abby angrily replied that she'd already tried to repair her relationship with Victor. Michael insisted that Abby could still reconcile with Victor. Abby rose to leave and said, "Screw you, Michael."
Nick accompanied Victoria to her house. Victoria told Nick that she understood how it felt to be estranged from their dad. Nick explained that he'd caught Victor in another lie. Nick said that he couldn't in good conscience support Victor. Nick added, "Everyone talks about how ruthless Dad is. Wait until he sees how ruthless I can be." Victor phoned Nick and summoned him to his office. Stalwart, Nick told Victoria that he looked forward to meeting with Victor.
At Victor's office, Nick told his father that what Victor had done to Sharon was a perfect example of why he couldn't be trusted to uphold the best interests of his family. Victor insisted that he could do nothing more for Sharon after having bailed her out of jail. Nick pressed his father to tell the truth and admit that he had been in Hawaii the night Skye had died. Victor accused Nick of being willing to lie about his father mishandling his children's trust funds for the sake of revenge.
Nick mentioned instances when Victor had misused the trust funds. Victor claimed that his children had never protested when their trust funds markedly increased in value. Victor vehemently warned that if Nick and his sisters persevered with their lawsuit, they would receive a one-time settlement and would relinquish all claims to future company profits. Victor heatedly explained that he would be forced to make Newman Enterprises a public company; therefore, Nick's legacy for his children would be the destruction of the family business.
At Lily's, Neil comforted Lily after she admitted seeing a vision of Cane and running toward him at the cemetery. She told Neil that she thought she might be losing her mind. Neil attributed Lily's vision to grief, but Lily insisted that seeing her dead husband walking around the graveyard was not normal. Sofia arrived. Lily told Sofia that she was experiencing a meltdown.
Sofia listened intently as Lily explained that she thought she'd seen Cane standing in the graveyard. While Neil checked on the babies, Sofia reminded Lily that she'd also thought she'd seen Cane at his funeral. Lily admitted that she'd also seen visions of her late friend, Colleen, but those instances would always make her feel at peace. Lily cried that seeing Cane, which had seemed so real, had been unsettling.
Neil stood in the hallway and overheard Sofia relate a similar story about seeing visions of her father in a nearby park soon after his death. Sofia assured Lily that she'd overcome the extreme pain of grief in time. Lily cried that she couldn't wait for time to pass because she needed to be strong for her children. Sofia advised Lily to rely on her support system and learn to embrace a new future.
After Lily went to check on her babies, Neil emerged from the hallway and told Sofia he had been touched by her kind words of wisdom. Sofia explained that someone had stepped in and supported her after she lost her dad, so she'd do whatever was necessary to comfort Lily. Neil cupped his hand on Sofia's shoulder and remarked that she had become a steadfast support for Lily.
Later, Lily's mood brightened when Sofia mentioned having picked up éclairs. Neil said he had to leave, but Lily insisted she would be fine with Sofia at her side. Recalling Sofia's unselfish acts of kindness to Lily, Neil seemed infatuated with Sofia.
Michael entered Victor's office to discuss Nick's actions at the arbitration. Victor was disappointed in Nick joined Abby and Victoria's lawsuit. Michael said that he was there to depose Nick. Michael mentioned that he'd spoken to Abby after the hearing. Michael suggested that Abby might not be as committed to the lawsuit as Victoria.
Ashley arrived at the Abbott house to visit with Abby. Ashley asked Abby how she felt after facing off with Victor at the arbitration hearing. Ashley had heard the news about Nick joining the lawsuit. Abby was unhappy about the development, even though Nick's actions meant that Abby and Victoria were likely to win the case. Abby felt bad for Victor and blamed herself for instigating the lawsuit in the first place.
Ashley saw that Abby had been looking at the scrapbook she'd made after Brad's death. Abby had been reminiscing about her father on the anniversary of his death. Abby revealed that Michael had insinuated that Abby might lose another father -- Victor -- if she persisted with the lawsuit. Ashley was surprised that Michael had spoken to Abby about Brad. Abby said she felt abandoned, but Ashley reminded her daughter that many people loved and supported Abby. Ashley said that she was her daughter's number one fan.
Abby asked if Ashley would consider moving back into the Abbott house. Ashley said she was planning to marry Tucker, and she needed to live with him. Ashley said goodbye to Abby and left her alone.
At Newman Enterprises, Nikki ran into Nick in the hallway and asked him to justify his decision to join Abby and Victoria in the lawsuit against Victor. Nick told his mother that he had good reasons for doing what he had done. Nikki asked Nick to go with her to speak with Victor and resolve the issue. Nick refused and walked away from his mother. Without knocking, Nikki burst into Victor's office and told him he had to settle the lawsuit immediately. Victor resented Nikki's interference and told her to get out of his office.
At the deposition, Michael drilled Nick with provocative questions. Leslie objected. Michael asked Leslie to allow him to speak privately with Nick. After assuring Nick that they were speaking off the record, Michael asked Nick why he had switched loyalties. Michael reminded Nick that he had agreed to testify for Victor at the hearing. Michael wanted to know why Nick had changed his mind. Nick said that his father needed to answer for his actions. Nick felt that he had been enabling his father.
Michael reiterated that Nick was risking the future of Newman Enterprises by entering into the lawsuit with his sisters. Nick said he knew what he was doing. Michael declared that hundreds of employees would be affected by the lawsuit. Michael suggested that if Nick, Abby and Victoria won, Newman Enterprises would go up in smoke.
Victor returned to his office and found that Nikki had not left. Nikki urged Victor to settle the lawsuit before it was too late to save their family. Nikki told Victor he had the power to reunite the family. Victor didn't think it was his responsibility to end the lawsuit.
Victor told Nikki that he had created Newman Enterprises for his children and grandchildren. Victor was horrified that it was his own children who were trying to destroy his life's work. Victor declared that Abby, Victoria, and Nick could wait until he was dead before they'd get another cent from him. Nikki hated to hear Victor speak that way. Nikki warned Victor that he would regret his decision to fight his children rather than resolve the conflict.
After her meeting with Abby, Ashley went to see Victor at his office. Victor assumed that Abby was happy about Nick's decision to join the lawsuit. Ashley said that Abby was sad. Ashley explained that Abby feared losing her father's love. Victor was more concerned about Nick's decision to side with his sisters. Ashley said that she didn't care about Nick because he wasn't her child. Abby was.
Ashley reminded Victor that Abby was still very young and, unlike Victoria and Nick, she needed Victor's love and support. Ashley asked Victor to speak with Abby while there was time to save their relationship. Victor still objected to Abby's desire to create a reality television show. Ashley said that Abby had been attempting to make Victor proud.
Victor recalled a stark naked Abby riding her horse into the Athletic Club. Victor said he admired Abby's spunk. Victor said that Abby had reminded him of how he'd been as a young man. Ashley assured Victor that Abby really did not want to be estranged from Victor. Ashley explained that Abby truly loved and missed Victor. Ashley felt that both Abby and Victor needed each other.
At Restless Style, Chloe blasted Billy for hiring Jana as a nanny. Victoria and Billy wondered about how Nick's involvement in the case would be interpreted in the media. Billy wanted to write a story for Restless Style, but Victoria asked him to refrain because it might influence the judge. Chloe saw a photo of a cab in the magazine; it reminded her of being with Chance in New York.
Nick arrived at Victoria's house. Victoria wondered if Nick had committed to the lawsuit because Victoria was certain that Victor would never forgive them for betraying him. Victoria and Nick reminisced about the good times they had shared with their father when they were children. Victoria believed that Victor could not handle that Victoria and Nick were independent adults. Victoria declared that Victor wanted to control them more than love them. Nick declared that he had decided to join the lawsuit with Abby and Victoria and he was in it for the duration.
Nikki arrived at Victoria's and was relieved to see Nick there because she wanted to speak with both her children. Nikki wanted Nick and Victoria to settle the lawsuit. Nikki told Victoria and Nick that if the lawsuit succeeded, the company would be destroyed. Nikki asked Victoria and Nick to contemplate the ramifications to the business and their family if Victor lost the lawsuit. Nikki suggested that Victoria and Nick would not like the results if they won the case.
Nick and Victoria believed that Victor was a bully and needed to be stopped. Victoria pointed out that Nikki had been a victim of Victor's bullying. Nikki agreed that she had suffered, but Nikki wanted the family to survive nonetheless. Nikki blamed herself for the lawsuit. Nikki was certain that the lawsuit would never have happened if she had not fallen off the wagon. Nikki asked Victoria and Nick not to dismantle what Victor spent his life building.
Victoria and Nick said that if they didn't break free on their own, Victor would never let them thrive. Victor would continue manipulating their lives. Nikki said that her relationship with Victor was not the same as theirs. Nikki acknowledged that Victor was too stubborn for his own good. Victoria and Nick told Nikki that they could not walk away from the lawsuit. Nikki walked out dejectedly. Victoria and Nick embraced each other supportively.
At Kevin's, Jana packed her belongings. Kevin was surprised that Jana was happy to be moving out. Jana said that she was tired of feeling sorry for herself. Jana described her job as Lucy and Delia's nanny a new beginning.
Jana finished her packing and said goodbye to Kevin. Kevin said it was difficult to move on, but Jana refused to give in to her emotions. Kevin gave Jana a comforting hug. Jana urged Kevin to take care of himself, and then walked out.
Billy noticed that Chloe was upset. Chloe said that unlike Billy, she had trouble getting over things. Chloe was impressed that Billy kept moving forward. Billy guessed that Chloe was upset about Chance, even though Billy didn't know that Chance was alive.
Billy advised Chloe not to live in the past. Chloe said that Billy was right. Before leaving the office, Chloe discovered that Billy had left a space in the magazine for a Newman lawsuit editorial. Billy told Chloe that he knew what he was doing.
At the mansion, Chance was pushing himself to heal. Heather warned Chance to be careful because he was still recovering from surgery. Chance was anxious to be in good shape when he testified against Owen in court. Chance made a nasty comment about Ronan, and Heather was surprised that Chance had turned on his brother. Chance said that he believed that Ronan had conned them. Heather realized that if Ronan had conned Chance, Heather had probably been played, too.
Chance returned to his bed and Heather urged him to rest. Chance told Heather that he wanted to talk. Chance asked if Heather regretted that they'd been romantically involved. Heather asked Chance why he'd told her he was returning when Chance had known he was going into the Witness Protection Program. Heather had a hard time understanding his reason for purposely lying to her.
Chance apologized for not handling his exit better. Chance said he'd only had 24 hours notice before the decision was made for the FBI to stage his death. Chance told Heather that he'd he lost a great deal when he entered the Witness Protection Program.
Chloe entered Chance's room and was surprised to see Heather. Chloe blasted Heather for glomming onto Chance with Ronan out of town. Heather saw Chloe's papers from Restless Style, and one item caught her eye.
After leaving the room, Heather called Michael to tell him about what she'd seen in Chloe's papers. Heather explained that suspected that Billy and Victoria were planning use Restless Style as a platform against Newman Enterprises. Chance asked Chloe to stop lashing out every time she saw Heather. Chloe explained that she felt victimized by Chance's fake death. Chloe explained that since Chance had returned, Chloe had been reliving every moment of her life with Chance.
Chloe declared that in some ways, she wished Chance were dead again. Chance said that technically he was still dead. Chance got up from the bed and walked into the bathroom. Heather returned and saw Chloe again. Chloe excused her nastiness to Heather and blamed it on frustration. Chloe said that it was irritating to be around Chance, but she didn't want him back.
Chloe said it was a complicated situation. Chance returned to the room and asked them both to leave. Before they left the room, Chance told Chloe and Heather he would be returning to WITSEC after testifying in court. Chloe and Heather said that it wouldn't be easy for them to return to life as it was. Chance commented that since he and Heather had never really gotten off the ground, Heather wouldn't miss him. Chance urged Chloe and Heather to pretend that he was still dead and go back to living their lives without him.
Heather left and as Chloe walked out, Kevin surprised Chloe in the hallway outside of Chance's room. Kevin wondered why Chloe had been in Chance's old room. Chloe ducked the question by asking Kevin why he was there. Kevin told Chloe that Jana had moved out of his apartment. Before Chance emerged from the room, Chloe hurried Kevin downstairs.
Michael walked into Restless Style and asked Billy if it was true that he was writing an anti-Newman editorial. Michael warned Billy that he'd file a cease and desist order to stop publication of Restless Style if necessary. Billy handed Michael a copy of the editorial for him to read. Michael read it quickly and realized the editorial was not an attack on Victor.
Jana arrived at Restless Style to meet Billy. Billy promised to finish his work and then take Jana to the garage apartment. Jana told Billy that the new job was very important to her.
At Crimson Lights, Ashley ran into Michael. Ashley told Michael that she didn't appreciate that he'd used Brad's death to play on Abby's vulnerabilities. Michael explained that he knew what it was like to lose the love of a father. Michael stood by what he had said to Abby.
Victor walked into the Abbott house and saw Abby curled up on the couch. Victor opened his arms, and Abby rushed into his arms. Abby cried like a child as Victor assured her that he was there for her, and everything would be okay. Abby wasn't sure if she should be speaking with Victor because of the ongoing lawsuit. Abby and Victor agreed that neither one of them wanted to be settling their differences in court.
Victor reminded Abby that they'd always been very close. Victor said his generous settlement offer was still on the table. Victor said he loved Abby and then said goodbye.
Jack arrived at Gloworm and was surprised to see that Victor was there. Jack thanked Victor for moving Diane into his house because that resulted in Kyle living with Jack. Victor was sorry that Kyle would not be staying at the ranch. To get back at Jack, Victor mentioned that he knew about the video from the volcano. Victor said it was bogus and dismissed the evidence as trivial. Jack was sure that the video would stand up in court.
Victor declared that Adam had been in league with Skye. Victor refused to admit that he'd had any part in Skye's disappearance. Jack called Victor a self-righteous bastard. Victor responded arrogantly that Jack had nothing to use against Victor.
At the tack house, Nick was on the phone with Victoria. Nick assured his sister he was not backing out of the lawsuit. There was a knock on the door, and Nick found Diane standing there. Diane asked Nick if he would stop avoiding her so they could discuss their relationship. Nick said he had nothing to talk with her about.
Diane offered to continue carpooling with him to get Summer and Kyle to school. Diane mentioned that Kyle has moved in with Jack. Nick smirked because Diane had supposedly moved in with Victor so that Kyle could enjoy the ranch.
Nick said that Diane was a pro at getting what she wanted. Diane wondered why Nick had joined Abby and Victoria in the lawsuit. Diane feared Nick had done it to get back at Diane. Nick said that Diane was flattering herself. Diane accused Nick of lying to himself. Nick disagreed with Diane, and she left his home.
Billy told Victoria that life was nearly perfect for them. Victoria reminded Billy that Lucy still needed to be christened. Victoria suggested that Nick and Abby were good choices as Lucy's godfather and godmother. Billy had doubts about Abby. Victoria said that Abby was very capable and loved Lucy. Billy wondered if Victoria might be asking Abby to be Lucy's godmother so that Abby would stick with the lawsuit. Victoria acknowledged that the thought had occurred to her.
Billy felt that Lucy's godmother was too important a position to be handed to Abby, especially since the lawsuit would be over soon. Lucy's godmother needed to be involved for years to come. Victoria believed in Abby, and said that Abby truly wanted to form a long-term family connection. Victoria wore Billy down. Billy agreed to Abby as Lucy's godmother, and Victoria was thrilled. Billy asked Victoria to consider Jack as the godfather instead of Nick. Victoria and Billy picked up Lucy and left the house to find Abby.
At Crimson Lights, Abby spoke with Daniel about the lawsuit. Abby admitted that she felt bad about what the case was doing to her father. Abby told Daniel that she was seriously considering accepting Victor's settlement offer. Phyllis interrupted Abby and Daniel. Phyllis told Daniel that she had decided to help Daniel find his baby. A short time later, Jack rushed in and grabbed Phyllis by the arm. Jack told Phyllis they had to speak right away.
Jack dragged Phyllis away from the table so they could speak privately. Jack told Phyllis that Victor knew about the video. Phyllis admitted that she'd told Nick about the video, but defended her decision. Phyllis thought Nick needed to know about his father's actions. Jack was furious and asked Phyllis why she had needed to show Nick the video. Jack pointed out that he hadn't shown Sharon the tape. Phyllis was ticked off that Jack felt the need to tell Sharon about the evidence.
Phyllis said that telling Nick had been for Summer's protection. Jack said that Nick had gone to Victor with the information. Thanks to Phyllis and Nick, Victor had a chance to cover his tracks. Phyllis marched off, and Jack fumed.
Malcolm and Neil had a talk about Lily's welfare. Neil was grateful that Sofia had been helpful to Lily. Neil asked Malcolm about his relationship with Sofia. Malcolm said that he and Sofia were not close to reconciling. Neil pointed out to his brother that Sofia cared a lot about their family.
Malcolm resented the way that Neil defended Sofia. Neil agreed that Sofia had made a mistake by keeping Cane's secret from them, but Neil thought Malcolm needed to cut Sofia some slack. Malcolm said that he couldn't put a timeframe on his feelings. Neil told Malcolm to work it out with Sofia or put an end to the relationship. Malcolm told Neil to mind his own business. Malcolm angrily left the house.
At Lily's, Sofia finished taking care of the babies. Lily thanked Sofia for helping and said goodbye. Lily walked out the door and thought she heard Cane. Sofia asked Lily what was wrong. Sofia wondered if Lily had seen a vision of Cane, like she had at the cemetery. Lily said this was different because she'd heard him. Sofia wanted to stay to keep Lily company, but Lily said that she'd be fine. Lily escorted Sofia out of the house.
A while later, Sofia arrived at Neil's, expecting Malcolm to be there. Neil revealed that he'd argued with his brother, and Malcolm had left in a huff. Neil asked how Lily had been doing, and Sofia revealed that Lily had experienced another ghostly visit from Cane. Sofia assured Neil that she would have stayed with Lily if it had been necessary.
Neil appreciated that Sofia really cared about Lily. Sofia wished that Malcolm felt that way about her. Neil told Sofia that Malcolm would come around in time. Sofia and Neil talked business, and Sofia helped Neil solve a Chancellor problem. Neil was impressed by Sofia's solution. Sofia pointed out that they made a good team. Neil and Sofia agreed that they had misjudged one another when they first met.
Billy and Victoria arrived at Crimson Lights with Lucy. Abby was thrilled to see her niece. Daniel and Abby sat at a table with Victoria and Billy. Victoria asked Abby if she would be Lucy's godmother. Abby was honored, but asked Daniel for his advice. Daniel said it was Abby's decision. Daniel stepped away so Victoria, Billy, and Abby could speak privately. Abby said she'd love to be Lucy's godmother.
Billy and Victoria saw that Jack was at the coffee house, but Victoria stopped Billy from asking Jack about being the godfather. Jack asked Malcolm if he knew somebody who could enhance a video. Malcolm knew a forensic expert and offered to put Jack in touch with him.
Victor met with Abby and asked if she had made up her mind about accepting the settlement. Abby said that while she was tempted, Abby didn't want to be disloyal to Victoria. Abby told Victor that she'd been touched that Victoria had asked her to be Lucy's godmother. Victor said Abby would be an excellent godmother. Abby said she didn't want to hurt either Victor or Victoria. Victor asked Abby if she considered the possibility that Victoria had chosen Abby as godmother in order to keep Abby from dropping out of the lawsuit.
Abby was insulted by Victor's insinuation. Abby wanted to be considered a real member of the Newman family, like Nick and Victoria. Victor assured Abby that she was just as much a Newman as her brother and sister. Victor thought the timing of Victoria asking Abby to be Lucy's godmother was suspicious. It had occurred at the same time that Victor had offered Abby the settlement again. Abby told Victor that Victoria didn't know about that.
Diane walked into the living room and hugged Victor. Abby was shocked to see that they were a couple. Abby was disgusted to see that Victor and Diane were involved again. Abby told Victor that Diane had slept with Tucker. Victor didn't want to hear about Abby's allegations.
Abby accused her father of doing whatever he wanted without regard for his family. Abby was at the door, ready to leave. Victor told Abby that how he lived his life had nothing to do with his relationship with Abby. Abby understood. Victor told Abby to think carefully about his offer.
Phyllis took a seat at the Gloworm bar right next to Nick. Phyllis said that she'd heard about Nick joining the lawsuit. Nick assumed Phyllis was fishing for a story. Phyllis offered to listen to Nick's problems. Phyllis told Nick that Jack was angry with her for showing Nick the video. Nick didn't care about Phyllis and Jack's relationship. Nick said that he didn't want to hear about Phyllis' problems. Phyllis was insulted by Nick's cold attitude and walked out.
Nick found Phyllis outside. Nick admitted that he'd acted like a jerk. Phyllis said that they were not friends; they were exes. Nick tried to apologize. Phyllis told Nick she was cutting him out of her life. Phyllis promised Nick that she wouldn't foist her troubles on Nick. Nick stopped Phyllis from walking away from him, and they pressed close to each other.
Nick assured Phyllis that he cared. Phyllis turned and walked away. Back in Gloworm, Phyllis ran into Jack. Phyllis and Jack sat together, and Jack admitted that he'd been wrong earlier. Nick saw Phyllis and Jack together.
Victoria and Billy walked into Gloworm. Phyllis, Jack, and Nick greeted them. Billy and Victoria said they had to speak with Jack and Nick. At the same time, Billy and Victoria asked Jack and Nick to be Lucy's godfather. Nick and Jack said yes.
Lily climbed into bed and switched off the lamp. The wind blew, and the window rattled. Lily heard Cane's voice call her name. Lily rushed to the window and looked for Cane. Lily walked into the living room and heard Cane's voice again. Lily ran outside the front door. Daniel arrived at the house and found Lily standing there in her nightgown.
Back in the house, Daniel said there was nobody around the house. Lily told Daniel that she had to have been imagining things. Daniel said he needed a friend and Lily urged him to confide in her. Daniel told Lily that he knew where his baby was. Lily was stunned to learn that Lucy Abbott was Daniel's daughter. Daniel didn't know how she had ended up with Billy and Victoria, but he told Lily that he'd checked the DNA, and he and Lucy were a match.
Daniel explained to Lily that Victoria and Billy had no idea that Lucy was Daisy's child. Daniel added that he didn't want Billy and Victoria to know that Lucy was Daniel's daughter. Daniel believed that Lucy could have the perfect family life with the Abbotts. Daniel knew that his claiming Lucy would be selfish. Daniel said it was killing him to lie to his family and keep away from Lucy. Lily said Daniel was giving Lucy a great gift.
Daniel was relieved confiding in Lily. Daniel hated being the only one who knew about Lucy. Lily confessed that she'd been hearing Cane call her name. Daniel checked the house, and there was nobody outside. Daniel pointed out that Lily and Cane had shared a lot. Lily said she felt like Cane was still in the house. Daniel offered to spend the night with Lily, just in case she needed the company. Lily was grateful. Daniel crashed on the couch.
Neil confided in Sofia that in the past few turbulent weeks, Sofia had been a steady influence in his life, and Neil appreciated her. Neil told Sofia that he thought she was beautiful, inside and out. Neil kissed Sofia, and she responded. Neil and Sofia made love.
A while later, Sofia finished dressing, and so did Neil. There was a knock on the door, and Malcolm arrived. Malcolm was surprised to see that Sofia was with Neil. Sofia said she had gone to Neil's in hopes of finding Malcolm. Malcolm apologized to Neil for their fight. Neil said that he'd probably gone too far. Malcolm offered to take Sofia home. Malcolm said that he and Sofia had a lot to discuss.
Diane entered the living room and found Victor reading about the arbitration hearing online. Diane wondered why Victor was torturing himself. Victor explained that he needed to know what people were saying about the case. Victor asked if Diane had slept well because he knew she had tossed and turned during the night. Diane said she'd been missing Kyle. Victor was hopeful that Kyle would be living back at the ranch soon. Victor asked Diane to speak with Kyle about returning to the ranch and living with them. Victor admired the way Diane had raised Kyle.
At Gloworm, Jack told Phyllis that he was thrilled to have Kyle living with him. Phyllis was suspicious about Diane's reason for letting Kyle live with Jack. Phyllis also worried about how she and Jack were going to be together, since Kyle disliked Phyllis. Jack said that they would work things out. Jack apologized again for fighting with Phyllis about the volcano video. Phyllis apologized, too, recognizing that her showing the video to Nick might have upset Jack's plans to spring the evidence on Victor. Jack told Phyllis he had a new strategy for using the video to optimum effect.
Adam read the online story about Nick joining Abby and Victoria in their lawsuit. Sharon wondered what could have motivated Nick to turn on his father. Adam was more concerned with how Victor would respond to his siblings ganging up on Victor. Jack called Sharon and said he had decided to share the evidence from Hawaii with her. Jack told Sharon that he was on his way to see her. Sharon and Adam were curious about what Jack had discovered in Hawaii and why he was ready to share it with Sharon.
Lily told Neil that she was feeling better. Lily thanked Neil for his concern, but she told her father she didn't need him to visit. Lily hung up the phone and heard static. Lily wondered if the nose was Cane trying to communicate with her. Lily called out for Cane. Looking around, Lily discovered that her little Yorkshire terrier, Humphrey, had pulled out the adaptor for the baby monitor cord out, creating the sound she heard.
Abby and Daniel visited Victoria and Lucy. Abby had a gift for her goddaughter, a crystal pacifier. Leslie called Abby's cell phone with news about the lawsuit. Victoria was excited. Daniel gazed down at Lucy in her bassinette. Victoria noticed that Daniel was studying the baby. Victoria sympathized with Daniel, suspecting that he was thinking about Daisy's baby. Daniel shook his head. Abby told Victoria that Leslie thought the lawsuit might be over very soon. Daniel wished Abby good luck at the hearing.
Daniel went to see Lily and told her about his encounter with Victoria. Daniel said that he was afraid to be around Lucy because he suspected that someone would realize that Daniel was Lucy's father. Daniel feared that Victoria and Billy would figure it out someday. Lily gave Daniel a cup of coffee and assured him that nobody suspected a thing. Daniel told Lily that he wanted Lucy to stay with Billy and Victoria. Daniel wondered if he was just being paranoid. Lily told Daniel that nobody would figure it out.
Lily confided in Daniel that she'd had another Cane experience. Lily thought that Cane was trying to communicate with her. Daniel said they were both neurotic. Daniel thanked Lily for being his confidante. Daniel and Lily agreed to be each other's sounding boards. Daniel left, and Lily suddenly heard music on the baby monitor. Lily rushed into the babies' room. Lily returned with the music box that had been playing. Lily wondered who'd opened the music box, since there was nobody in the house but her and the twins.
Nick ran into Michael at Crimson Lights. Michael said that the judge would be announcing his decision shortly. Michael didn't think there would be a real winner. Michael asked Nick to drop the case. Nick said he couldn't do that. Michael defended Victor's actions, reminding Nick that Victor was a proud man. Nick felt that his father needed to be reined in. Michael was concerned for the Newman family. Michael didn't think that Nick wanted to destroy his father or Newman Enterprises. Nick thought it was time for Victor to change. Michael appealed to Nick one more time, but Nick was unmoved by Michael's words. They agreed to see each other at the hearing.
Nick went to Victoria's and told his sisters that he'd spoken to Michael and learned that the judge had reached a decision. Abby was confident they were winning, but feared what Victor and Michael might do to sway the judge. Abby was anxious and wondered what Michael had said to Nick. Nick said that Michael had tried to spook him, but Nick wasn't rattled. Victoria urged Abby to stay strong. Abby told Victoria and Nick that Victor had reached out to her by stopping to see her the other day.
Abby said that Victor had been very sincere when he stopped to see her. Nick and Victoria were not surprised to hear that Victor had made Abby a generous settlement offer. Abby told her siblings that Victor had suggested that Victoria had only asked Abby to be Lucy's godmother to keep Abby involved in the lawsuit. Victoria thought that was a nasty thing for Victor to say. Abby also mentioned to Victoria and Nick that Diane had walked in, and Victor had embraced her. Abby explained that after Victor told her that his life was none of Abby's business, Abby realized that Victor would never be the warm and loving father he'd been when she was a child. Victoria and Nick said that Victor was only happy when his children were under his thumb.
Nick told Victoria and Abby that once they won the case, Victor would probably never forgive them. Nick didn't think Victor ever really forgave Nick for turning him in for commercial bribery. Nick said that Victor's true "first born" was Newman Enterprises, and he loved the company more than he loved his children. Abby said it was sad the way things had worked out for their father. Victoria wondered why family didn't matter more to Victor, considering his own childhood growing up in an orphanage. Victoria said the post-lawsuit fallout would be huge, but there was no other way for them. Nick and Abby agreed with Victoria.
Michael reported to Victor that he expected the judge to rule in favor of Abby, Victoria, and Nick. Michael had an idea for a motion. Michael wanted to deny the validity of the trust agreements that Victor had amended when he went to Mexico. Michael wanted the judge to recognize the earlier versions, in which Victor had more control of his children's trust funds. Michael reminded Victor that the new agreements had been created in the wake of Sabrina's death. Michael felt that if Victor claimed he'd been suffering from posttraumatic stress disorder, he could convince the judge to disregard the later trusts.
Victor refused to say that he'd been mentally impaired after Sabrina's death. Michael said it was the only solution. Victor rejected the suggestion. Michael asked Victor to consider taking the company public, but Victor rejected that idea, too. Victor insisted that Michael find a solution that Victor could tolerate.
Jack went to Sharon and Adam's and told them about the video proving that Victor had been at the volcano when Skye died. Adam asked why Jack had not given the video to Sharon's lawyer as soon as he'd returned to Genoa City. Jack said the video was fuzzy and he'd hired an expert to enhance the image quality. Adam and Sharon were not happy with Jack's decision to keep the evidence from them. Jack told Sharon that Phyllis had shown the video to Nick, and Nick had told Victor about it. Jack said that Victor had denied that he was the man in the video.
Adam accused Jack and Phyllis of poor judgment. Sharon figured that Nick had joined Abby and Victoria's lawsuit after seeing the video. Jack apologized to Adam and Sharon. Adam told Jack he would really be sorry. Adam liked that his siblings were out to get Victor, but Adam wanted to get Sharon exonerated. Sharon blamed Phyllis for sabotaging her chances to be exonerated. Sharon said she could kill Phyllis for what she had done.
Phyllis ran into Diane at Gloworm. Diane was happy that Kyle was enjoying his time with Jack. Phyllis guessed that Diane allowed Kyle to stay with Jack because Diane was cozying up with Victor. Phyllis suspected that Diane was plotting something. Phyllis said that Diane needed space to get some money out of Victor. Diane claimed that Victor was everything she wanted, but Phyllis suspected that Diane had another rich man in her sites. Phyllis told Diane that she was a seat warmer until Victor returned to Nikki.
At Gloworm, Michael asked Diane to have a cup of coffee with him. Michael was surprised about Victor and Diane's very public relationship. Michael wondered if Diane was really committed to Victor. Diane appreciated that Victor had been good to her and Kyle. Diane bemoaned the lack of a name for what she was to Victor. Diane felt swept up in Victor's complicated world. Diane confided to Michael that she'd been seeing another man before Victor, and she couldn't get him out of her mind. Michael warned Diane that she was playing a dangerous game with Victor. Michael advised Diane to tell Victor the truth about the other man and get out before it was too late.
Jack called Phyllis to warn her that Sharon was very angry with Phyllis about the video. Jack said that Sharon blamed Phyllis for showing Nick the evidence. A while later, Sharon confronted Phyllis at the magazine office, accusing Phyllis of betraying her promise to help clear Sharon's name. Phyllis said that Nick had needed to know the truth about Victor. Sharon said that Phyllis owed it to Sharon to give the information to her before giving it to Nick. Phyllis stood by her decision. Jack arrived and held back Sharon, as she was ready to physically go after Phyllis. Jack told Sharon that Victor was the enemy, not Phyllis. Phyllis said that the video was not proof positive.
Adam burst into Victor's office and told his father to "man up" and do right by Sharon. Victor resented Adam's intrusion. Adam said that if Victor wanted to go after Adam that was all right. Adam declared that Sharon an innocent victim and didn't deserve to be hurt by Victor's machinations. Adam informed Victor that Phyllis, Jack, and Nick all knew that Victor had been at the volcano the night that Skye died.
Adam ordered Victor to confess what he had seen to the D.A. If Victor didn't, Adam said that he would tell the D.A. about the video. Victor had other plans and told Adam to listen to him. Adam said that didn't want to negotiate with Victor. Victor said he would save Sharon in exchange for Adam's help. Victor asked Adam to help him save his empire.
Before the arbitration, Abby, Victoria, and Nick met. Abby asked Victoria and Nick what would happen after the judge ruled. Victoria said they needed to ask Leslie how the judge's ruling would be administered. Nick told his sisters he'd meet them at the hearing. Before leaving, Nick found the morning newspaper on the doorstep. Nick showed Victoria and Abby that their lawsuit was the top story. After Nick left, Abby read the newspaper article out loud. Abby thought the article made them seem mean and heartless. Victoria told Abby that they would be vindicated at the hearing.
At Crimson Lights, Michael confronted Leslie about the front-page story on the Newman lawsuit. Michael accused Leslie of leaking information to the press. Leslie resented Michael's implication. Leslie told Michael that she'd researched his past and knew that Michael had a history of underhanded tactics. Leslie walked out.
Later, Victoria went to Crimson Lights, where she ran into Lisa, a woman she knew from Newman Enterprises. Victoria inquired about Lisa's family. Lisa said that times were tough for her family because she'd been let go from the company because of Victoria's lawsuit. Victoria said she was aware of the layoffs, but didn't know that Lisa had been affected. Victoria told Lisa that the lawsuit was in the best interests of the company. Victoria offered to rehire Lisa once the lawsuit was over. Lisa said that she'd believe Victoria's offer was sincere when and if it ever happened.
At Gloworm, a reporter asked Abby to grant her an interview. Abby sat down with the lady and enthusiastically told her about the future of the Naked Heiress. The reporter asked Abby about the lawsuit. Abby said that the lawsuit was none of the media's business, but the reporter told Abby that she was a celebrity and had no choice about which stories the press covered. Abby declared that the interview was over. As Abby tried to leave Gloworm, photographers swarmed to get her picture.
Nick entered Victor's office and announced that the press expected the judge to rule in Victoria, Abby, and his favor. Victor told Nick that the judge had yet to rule. Nick said that he wanted to settle the case out of court. Nick asked if Victor would agree to a settlement so the family could avoid a media circus. Victor said that he'd already made settlement offers to Abby and Victoria. Nick told Victor that he had to learn to be accountable for his actions. Victor refused to make a deal with Nick and told his son to take his holier than thou attitude and shove it "where the sun doesn't shine."
Sharon saw Nick at Crimson Lights and asked him if he'd joined Abby and Victoria's lawsuit because of the video Jack and Phyllis had discovered in Hawaii. Sharon told Nick that she didn't want him fighting her battles anymore. Nick said he was fed up with his father's machinations. Nick believed that he had to stand up to Victor once and for all. Sharon reminded Nick that Victor had experienced a hard time forgiving Nick after Victor had been arrested for bribery. Sharon told Nick that if he continued with the lawsuit, there would be no going back for Nick because Victor would never forgive his son. Nick told Sharon that he had to stick with the lawsuit because Victor could not be trusted.
Abby and Victoria met at the courthouse. Abby complained to Victoria about the press attacking her at Gloworm. Victoria shared that she'd had an encounter with a former Newman employee at Crimson Lights. Nick joined his sisters told them that he'd gone to see Victor. Victoria wondered why he'd bothered. Nick said he had hoped that Victor might agree to settle the lawsuit, but that Victor had rejected Nick's peace offering. Abby suspected that Victor had told Nick to go to hell. Nick said that Victor had been remarkably calm.
In Victor's office, Adam confronted his father about Sharon's case. Adam wanted Victor to do right by Sharon, without strings attached. Victor said that he had a tempting offer for Adam and Sharon. Victor told Adam that if he truly wanted Sharon to avoid prison, Adam would listen to Victor's deal. Adam asked what Victor wanted him to do. Victor asked Adam to testify at the arbitration hearing, claiming that Adam had forged Abby, Nick, and Victoria's trust documents while Victor had been in Mexico.
Adam said that if he did what Victor suggested, Adam would need to provide a good motive for his actions. Victor said that Adam could claim that he knew he would be cut out of the family business and wanted to create trouble for Newman Enterprises. Adam asked about the documents. Victor said the original trusts had given him more power over the trust funds. The revised trusts were the documents being used in the arbitration. Victor proposed that Adam's testimony that those trusts had been forged would compel the judge to throw out Abby, Victoria, and Nick's lawsuit. Adam asked for assurances that Victor would follow through for Adam after his testimony. Adam was also perturbed about confessing to forgery and being sentenced to prison time.
Victor declared that Adam would not be arrested for forgery unless Victor pressed charges. Victor believed that Adam would likely get probation if the D.A. decided to pursue the charges. Adam wanted a guarantee from Victor. Victor called for Michael to enter the office. Victor showed his son a trust fund that he had created for Adam. Michael entered, and Victor told the lawyer that he was offering Adam a trust. Victor asked Michael to consult with Adam over the terms of the trust. Victor said if Adam agreed to accept the trust fund, Adam could be a hero to Sharon as well as a very rich man. Adam said that he'd have an answer to Victor's offer shortly. If Adam went to the arbitration to testify, the answer was yes. Michael and Adam walked out of the office.
Later, when they were alone, Michael questioned Victor's decision to deal with Adam again. Victor said that because of Adam's love for Sharon, Victor could control his son. Michael reminded Victor that by asking Adam to lie about forging documents, Victor was guilty of obstruction of justice. As an officer of the court, Michael was uncomfortable with Victor's illegal activities. Victor offered to let Michael recuse himself, but Michael said that he would remain on the case. Victor assured Michael that he could deny knowing about Victor's scheme. Michael said they would have to present the new evidence in court without warning. Victor said that was precisely how he wanted it to play out.
Malcolm and Sofia were together at Gloworm. Malcolm admitted it had been a tough few weeks. Malcolm talked to Sofia about the possibility of their reconciling. While Malcolm spoke, Sofia recalled making love to Neil. Malcolm apologized for lashing out at Sofia and blaming her for lying to him the way Dru had. Malcolm said that he appreciated that Sofia really cared about the Winters family. Sofia was surprised by Malcolm's change in attitude. Malcolm explained that Neil had pointed out Sofia's qualities to him. Malcolm told Sofia that he still wanted a future with Sofia.
Neil spoke to Tucker about the ramifications of Sofia's exit on the business. Neil said they were behind in a series of projects and recommended Tucker rehire Sofia. Tucker refused to consider that option. Tucker said he couldn't trust Sofia after she betrayed him. Neil wondered if Tucker had ever made a mistake that he regretted. Neil said that Sofia deserved a second chance.
Tucker recalled that Neil had not liked Sofia when they first met. Tucker asked Neil why he was suddenly Sofia's champion. Neil declared that Sofia was a rare talent, and Neil had misjudged her at first. Neil believed that Sofia's had been protecting Lily and the twins when she betrayed Tucker. Neil believed that Tucker Unlimited needed Sofia, and so did Neil and Tucker. Neil asked Tucker to forgive Sofia.
Sofia's phone rang. It was Neil calling to tell her that Tucker wanted to see her. Sofia told Malcolm about Neil's phone call. Malcolm and Sofia went to Tucker's building. Neil ran in to Malcolm and Sofia in the hallway. Tucker invited Sofia into his office to talk. Sofia wondered why Tucker wanted to see her. Sofia wondered if Tucker still intended to press charges against her. Tucker said he wouldn't press charges and would forgive the money that had been paid to Cane. Tucker asked Sofia to return to her position in the firm and repair the damage done to the bio-diesel project. Tucker urged Sofia to get to work immediately. Sofia accepted the challenge and the offer to return to her job.
While Sofia and Tucker were talking, Neil told Malcolm that he had tried to convince Tucker to rehire Sofia. Malcolm thanked Neil for putting him back on the right track with Sofia. Malcolm believed that Neil had always been square with him. Neil was uncomfortable with Malcolm's compliments. Tucker and Sofia emerged from the office, and Tucker said that Sofia was back on board with Tucker Unlimited. Sofia thanked Neil for putting in a good word for her with Tucker.
At home, Adam consulted with an attorney by phone about the legalities of helping Victor. Sharon walked in and heard part of Adam's conversation. Sharon suspected that Adam was scheming. Adam admitted that he had confronted Victor about stepping up for Sharon. Adam said that he believed that Victor would come through for Sharon eventually. Sharon wondered if Adam had made a deal with the devil by agreeing to work with Victor.
Adam tried to deflect Sharon's question by reminding her that Victor hated him. Sharon was upset and told Adam that Victor would turn on them. Sharon said that Victor could not be trusted. Adam explained that he had to leave for a meeting, but would speak with Sharon later. Adam told Sharon not to worry. After Adam walked out the door, Sharon followed him.
At the arbitration hearing, the judge announced that he was ready to rule on Nick, Abby, and Victoria's lawsuit. Before the judge could continue, Michael said that new information had been discovered. Adam burst in and said that he was a witness. Sharon watched Adam go into the hearing room. Victor introduced Adam to the judge as the only one of his children who had not turned against him. Sharon hoped that Adam wasn't doing anything foolish. Leslie objected to Adam's stepping forward. The judge said he would allow Adam to testify.
Michael said that Adam had information about activities that had happened two years earlier, regarding the Newman family. Adam was sworn in by the judge. Adam vowed to tell the truth. Adam then proceeded to lie to the judge, saying that he had forged Abby, Nick, and Victoria's trust fund documents in 2008 while he had been running Newman Enterprises. Adam said that he'd known that Victor was planning to cast him aside when he returned to Genoa City, so Adam had decided to make trouble for his father by changing the terms of the trust documents.
Victor declared that the trust fund documents being used in the lawsuit were fraudulent. Leslie said she did not believe Adam's testimony. Victor told Abby, Nick, and Victoria that Newman Enterprises had been severely damaged by their actions. Victor said that since the documents were forged, Abby, Victoria, and Nick had no case. Victor said that they would get nothing.