At the police station, Scott accuses Lucy and Kevin of kidnapping Serena. Lucy denies his accusations, but won't reveal her alibi. Meanwhile, Joe runs into Karen after giving her statement on the hostage crisis, but she declines his offer of support. Joe remembers their childhood and then tells his brother Frank that Karen's putting on a brave front but is really scared. Joe and Frank go home and find their mother Mary waiting for them. Mary has a surprise for Joe- Dr. Alan Quartermaine, Chief of Staff of General Hospital, is there to see him. Karen goes to the home of her paternal grandparents, Lee and Gail Baldwin, and accuses her grandfather of nepotism, as she got Greg Cooper's intern slot after he was dropped from the program. Karen announces she's going back to San Francisco, but Lee tells her that Scott, the father she never knew, is in town and asks if she'd like to meet him. Lee calls Scott and tells him that his ""daughter"" is at his house and Scott, assuming he means

At the Scanlon house, Dr. Alan Quartermaine warns Joe that he needs to keep his temper under control while facing the review board. Frank asks Joe what Alan said to him, but Joe keeps mum. Gail, Lee and Karen find Scott lying on the street after being knocked down by a hit-and-run driver. Scott comes to and calls for Serena. While Lee and Gail call for an ambulance, Karen tends to Scott's injuries. Paramedics Frank and Joe (who's working his late day before starting his internship) get the emergency call about Scott and respond. They take Scott to the hospital and Karen surprises them when she says Scott is her father. At the police station, Lucy and Kevin are still detained until the FBI hears from Scott. Lucy then admits her alibi- she had an appointment with a doctor. Privately, Lucy tells Kevin she's pregnant. When her alibi is confirmed, Lucy is free to go. Back at the hospital, Karen and Joe meet with the icy Dr. Ellen Burgess, who handles Scott's case. Alan then asks

After making love, Jake confronts Danielle on why she left him. Danielle claims she needed time alone, but realizes she wants Jake and is moving to Port Charles to be with him. At the Scanlon house, Julie shows up to see the basement apartment and, after sparks fly between her and Frank, she agrees to rent it. Eve demands Scott sign a legal document saying he left the hospital against medical advice, but Scott proposes a deal. He'll sign it, if she gives him medical treatment outside the hospital. Knowing she could lose her job, Eve refuses. However, after Scott tells her that he can't got back to the hospital because his daughter's been kidnapped, Eve agrees to his terms. Meanwhile, Serena is kept in a room and meets with a mysterious woman.

As Scott's kidnapping trial begins, Jake volunteers to testify that Rex is Serena's real kidnapper, but Lee tells him his testimony is hearsay. The prosecution alleges that Scott kidnapped his own daughter to ransom her and pay off his gambling and drug debts. The prosecution's first witness is the former nanny of Jason Quartermaine. She testifies that Scott married Jason's mother to get his hands on Jason's $1 million trust fund. Meanwhile, a distressed Serena is comforted by the spirit of her late mother Dominique. However, Dominique tells Serena that she's the only one who can see her. Julie learns from her bickering parents that her mother slept with Chris. An angry Julie confronts Chris and Eve thanks him for taking the heat off of her.

On New Year's Eve, an amorous Rex invites himself into Lucy's hotel room and overstays his welcome as Kevin hides in the bathroom. When Rex goes into the bathroom, Kevin hides out on the ledge. Rex snoops through Lucy's medicine cabinet and swipes some of her pills. Scott and Eve share a New Year's kiss but Scott abruptly calls a halt to any further passion. Later, Dominique's spirit visits both Serena and Scott in their dreams to say good-bye and Dominique encourages Scott to get on with his life. After basking in the afterglow of making love, Julie tells Frank she wants to keep their affair secret. However, her plans are ruined when Eve catches her coming out of Frank's bedroom half-dressed.

Rex learns Lucy has been taking fertility pills and surmises Lucy faked her break-up with Kevin. Lucy meets with Rex who suggests they going into business selling stress-relief pills and Rex gives Lucy a sample bottle. Later, Rex plots to switch Lucy's sample bottle with poison pills. At Scott's trial, more damaging ""testimony"" against Scott is heard, including testimony from a reluctant Eve, who testifies that Scott appeared under the influence of drugs, backing the prosecution's claims that Scott was a drug user with outstanding drug and gambling debts. Eve apologizes to Scott and invites him out to dinner. Alice has another heart attack and has to have immediate surgery.

During a business meeting with Rex, Lucy agrees to go into business with him selling stress-relief pills. Subtley, she confirms that Rex has not been in the Cayman Islands recently. Rex tries to convince Lucy to admit phony photographic evidence against Scott as an eyewitness in his trial and, later, Lucy discusses her dilemma with Kevin. Meanwhile, an unknown person breaks into Lucy's hotel room and switches her stress-relief pills for other pills. Chris treats Lark for a suspicious head injury and Joe and Karen recognize her as one of Frank's students. After Lark's mother comes to the hospital, they suspect her of physical abuse and call social services. Winston tells Matt the history of Ellen's animosity between her mother- Ellen married a man who her mother didn't approve and dropped out of medical school to put him through law school. Later, Ellen tells Winston that her husband Sam died. Eve surprises Scott with a dinner with Serena. Scott and Serena discuss the same drea

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Picking up where the 6/22 episode of ""General Hospital"" left off, a dead body is found hanging from the rafters at the Nurses Ball and discovered to be Jake. Chris suggests to Eve they provide alibis for each other since they both don't have one for the time of Jake's death. Accusations fly wild as everyone argues about who is the culprit. Garcia brings in Lark, who was found hiding at the Ball. Garcia announces everyone is a suspect and questions all party guests. Later, Mac and Kevin find evidence in Jake's apartment, including a suicide note, which leads them to conclude Jake was the ""General Homicide"" killer.

The newspaper reports Jake was the ""General Homicide"" killer and the D.A. drops the murder charges against Julie. Frank visits Lark at the juvenile center and, after she blackmails him into getting her released by threatening to reveal his DL-56 use, he asks for Scott's help. After Jake's death, Karen vows to stop the DL-56 research much to Frank's dismay. After Kevin and Scott berate her for leaking Eve's past as a hooker, Lucy offers her an insincere apology. However, Eve, humiliated when her secret gets around, replies with harsh words. After Lucy learns Eve took her place at Serena's scout meeting, Lucy declares war.