At the winery, Angela plays Lance and Cole against each other. Chase finds out that Richard is planning to use a false company front to buy up grapes at twice the going rate. Despite the threat from Richard, Jacqueline wants Chase to work with Richard against Angela. When Cole wants to tell Lance that he is the father of Melissa's child, Melissa strongly opposes it. Angela offers Darryl more money to maintain Maggie's hopes of getting her script produced. In spite of bribing Richard's banker, Kenderson, into postponing the new stock issue, Angela still needs Chase's votes on The New Globe board to take over the newspaper. When Chase arrives at Richard's office to deliver a construction injunction on his new winery, Jacqueline surprises both of them with news that she gave Richard up for adoption when he was a baby, which means that Richard and Chase are half-brothers.

Angela's Founders' Day Party is in disarray following Richard's announcement that Jacqueline is his mother. When Chase confronts Richard on the veranda, Richard reasons he did not promise to keep Jacqueline's secret, only Chase's. When Angie turns on Jacqueline, Chase suggests taking her home. After Richard calls his mother an adulteress, Chase strikes his half-brother, and subsequently Chase and Maggie whisk Jacqueline away. The next morning, Chase regrets hitting Richard, while Jacqueline believes that the events of the previous night are in the past. She also understands Richard's bitterness, although Chase may never trust Richard again. At Falcon Crest, Melissa overhears Lance making plans to meet Lori. Melissa's attorneys are still evaluating all offers. Nick and Sheila, in their bedroom, share a moment as they dress.

Angela jeopardizes Chases recovery by telling him about his mother's death. After Maggie confronts Angela, Angela declares that it's time to go for the jugular. When Angela learns that Dr. Lantry augments his income by illegally selling pills, she uses this information to blackmail the doctor into signing an affidavit about Chase's incompetence to manage Falcon Crest. As Lance helps his grandmother in her scheme, his wife, Melissa, is turning to Richard for affection. Back at Falcon Crest, baby Joseph is rushed to the hospital after swallowing the pills that Lance had procured for Angela's blackmail scheme. With hatred and fear in her eyes, Melissa coldly accuses Lance of trying to destroy her baby.

Michael frantically races against time to stop Dr. Lantry from operating on Chase, which could leave Chase paralyzed for life. Angela then sets a court date to have Chase declared legally incompetent to manage Falcon Crest. Chase regains some feeling in his legs, and through physical therapy, begins to recover. At the hearing, just as the judge appears ready to rule in Angela's favor, Chase hobbles in on crutches, and the judge denies her petition. While Julia is declared not to be criminally insane, jail inmates continually torment her. At the Gioberti's house, Maggie convinces Michael to take a staff position at the hospital, but is shocked when he tells her he's the executor of Jacqueline's estate.

Melissa helps push Julia closer to the gas chamber as she faces sentencing for two murders. As the judge prepares to pronounce sentence, Julia announces she'd rather die than spend her life in prison. The judge, however, sentences her to life behind bars. Michael Ranson accuses Dr. Lantry of malpractice, but Lantry tells Angela he will implicate her if she doesn't stop Michael. Meanwhile, Richard Channing spins a malicious web using Emma to lure Maggie to work for his newspaper as a feature writer while he fights Chase by delaying the reading of Jacqueline's will. Philip returns the original contract to Melissa that Angela had forced her to sign that would have given the Agretti harvest to Falcon Crest.

Julia breaks down to beg Angela for protection against the ruthless inmates and prison matron who are out to kill her. Angela pays the matron off to make things easier on Julia. Maggie uncovers evidence that Dr. Lantry's paychecks are supplemented by a mysterious and handsome additional income. Dr. Lantry is feeling the heat from Chase and Michael's investigation into his competency and ethics as a doctor. Afraid of being implicated by Lantry, Angela threatens Dr. Hooks into dropping any inquiries. Maggie's sister, Terry Hartford, discovers that Maggie has become wealthy and heads for Falcon Crest.

As Dr. Lantry nears death, Chase realizes that he may lose his only opportunity to see Angela behind bars. Lance boldly threatens Angela and Melissa with blackmail, and at the same time, Angela works with Philip to admit Julia into a mental institution. Terry slithers her way into Michael's heart, while Angela blackmails her for devotion. Vince Caproni, bitter about Linda's marriage to Cole, tells Linda that Angela's cruelty to migrant workers caused Linda's mother's death. Angela forces Terry to spy on the Giobertis, or else Angela will reveal Terry's seedy past. Chase discovers a clause in his grandfather's will that gives him the legal right to oust Angela from Falcon Crest.

When Angela directs Lance to bribe the pickers not to pick Chase's grapes, Lance takes Father Christopher along to show him how deviously their grandmother Angela operates. Disgusted with her tactics, Christopher confronts her. After Chase discovers Angela's ruse in time to save his own harvest, he turns the tables on Angela. After signing a pre-nuptial agreement, which gives the groom the advantage, Richard Channing and Terry are married. As Apollonia embarks on her tour, Emma persuades Lance to follow her. The J.J Roberts fund-raiser at Falcon Crest is a huge success. Afterward, Jordan's mother uncovers the reason Jordan despises her father when Greg discovers Jordan working at a halfway house for abused girls. Peter Stavros's daughter tries to retrieve her father's briefcase from Angela. After Cole and Melissa pay Robin her money, Robin disappears with the baby.