After Angela, who is annoyed at Lance's defection to Richard's New Globe, continues her patronage of Dan Fixx, Emma seeks guidance from a storefront psychic. Kit appeals to Richard for help from Fixx, giving Richard a weapon to use against Angela. Cole is disenchanted with his father's partnership with Tony as Maggie is unable to help her troubled son or herself mend their relationships with Chase. Angela provides Miss Jones' sister with the nanny job in Richard's house. Richard dumps waste near Chase and Tony's vineyard.

Due to his past manipulations of Melissa's life, Lance's attempt to win control of The New Globe backfires. Richard overcomes Lance's ploy to control The New Globe by producing the man who framed Melissa, who demands that Lance move out. Emma brings Karlotti home to trace Wayne's spirit and begins to transfer her affections to the medium. Angela begins to believe that Lance framed her. Kit is reluctant to leave Tony for Guy and his plans of a fake suicide. Dan is able to break through Vicky's defenses. Maggie observes Chase's victory kiss from Gwen and has complications with her pregnancy.

When Skyler's disappearance and apparent suicide casts a pall over the mansion, Peter blames himself for not recognizing her distress. Peter's guilt drives him away, but Skyler's tragedy makes Emma finally realize that Dwayne is gone forever, and Angela is at last able to comfort her daughter. Tony learns the truth about Skyler (Kit). When Richard's son is kidnapped, he feels lost. Chase faces the fact that, of the two people in the valley he most despises, Richard and Angela, one is taking flowers to his wife and the other is trying to get closer to his daughter. Lance calls for his father's help when Melissa has a nervous breakdown.

When Maggie prematurely gives birth to her baby at Falcon Crest, Angela conspires with rich newcomer Roland Saunders in her plans to destroy Richard. Angela finds a kindred spirit in Saunders, ""the rudest billionaire in the Fortune 500."" When Richard offers to sign the birth certificate of Maggie's baby, Chase surprises them by signing it himself. The idea of the new baby troubles Emma. Lance questions his father about Kolinski, while Tony has to lie to his son to protect Kit. During Angela's international wine show at the spa, the matron of Falcon Crest arrives with Saunders, and Peter disapproves.

At Angela's engagement party for them, Vicky and Dan set the tone of the party by trying to avoid it. After Kit demonstrates a need to tell Tony good-bye, both Richard and Peter confront Saunders. Maggie arrives looking for her baby, which she now knows is Chase's. After Emma confounds Angela by introducing her adopted son, one of the guests is found dead in the winery.

When Kit comes to Tony's defense, the gesture proves worthless. Tony's trial proceeds as if D.A. Wilkinson had scripted it, until Kit arrives at the courtroom. After Chase uncovers evidence that Melissa had engineered the botched paternity test, he is too late to intercept her due to Angela's threats. Chao-Li loses face because Angela and Lance stay up all night to take care of him. After Chase and Maggie decide on a quick divorce, Richard sees his chance for happiness.