Chase fights a vicious public battle against Richard Channing, who is trying to build a racetrack that could destroy the wine industry, however, the final decision rests with the valley residents who are about to vote after the men's muckraking campaigns. Angela vows that she will not allow Chase to run Falcon Crest without her and thwarts his efforts to obtain the accounting records. Vince Caproni becomes seriously ill after Lance threatens him over Joseph's paternity suit. Angela makes a fiery attack on her nephew to strip him of his Falcon Crest powers. Meanwhile, Terry moves in with Michael, despite the Giobertis' warning that she is treacherous.

Richard has won the election to build his racetrack while Chase is madly driven to stop him, which results in an explosive disaster. In the mental institution, Julia becomes hysterical when Richard malevolently tells her Melissa's baby is his, thus pushing her into a catatonic state. Angela promises Lance that they will be kicked out of Falcon Crest if they lose Joseph's custody suit to Cole. However, when Melissa is grilled on Lance's affair with Terry while giving her deposition to Cole's attorney, she explodes and admits that their marriage is a farce. Angela attempts to stop Chase's plans to market a line of champagne by buying up the grape harvest he needs.

Pamela is surprised to discover that Richard's attacker is Padgett who pulls back the covers to find only pillows where Richard's body should have been. Padgett tries to flee the town, and Gustav is furious that Richard Channing has not been eliminated properly. At The Globe, Lance becomes publisher to the dismay of many of his new employees. The Board of Supervisors removes Chase as head of the airport authority. Joel McCarthy, out of money and desperate to support his drug habit, mugs Maggie at Tuscany Downs. She never sees her attacker, and later, Cole unwittingly hires Joel as the new transportation foreman for the vineyards. Emma hears Julia call out to her in the vineyards, but when Angela arrives, Julia disappears again.

Julia has been taken to Reibmann's estate, where she is confined in what resembles a hospital room. When she comes to, the nurse informs her that Lucas has been arrested for harboring a criminal, and then turns on the TV to a newscast, which covers the arrest of Julia Cumson! How did they find out she was alive? Julia wants to know. Angela found out about her phone calls to Emma, the doctor explains, as Julia becomes hysterical. ""How could you do this to me?"" Julia cries. Things are working perfectly, Reibmann comments, watching from behind a two-way mirror. He's staged the whole scenario! Meanwhile, Angela has enough troubles of her own-both Francesca and the agreement have disappeared. As if that weren't enough, Chase turns over his notes to the U.S. Attorney's office to bring a case against her for libel, perjury, and whatever else she may have done to frame him with the FAA. Chase, too, is preoccupied with Francesca and her agreement with Angela. Melissa takes advantage to score a

At Falcon Crest, Lance is dumbfounded when he sees Julia appear on the stairs. Greg and Angela manage to persuade Judge Leeds to transfer Julia's sentence to a convent in Oregon. Meanwhile, Angela plans to buy Sam Giannini's estate. Richard meets Cassandra Wilder, who attracts both Richard and his advertising account for Francesca wine. Greg continues to pursue Melissa until the day of the wedding. Dr. Mitchell informs Melissa that her auto accident has rendered her unable to bear any more children and Melissa fails to build the courage to tell Cole, who wants more children. However, Cole learns this in the worst possible way, through Angela. Feeling that Melissa has deceived him, Cole decides at the last minute that he cannot go through with the wedding and abandons Melissa at the altar in tears.

Melissa confronts Angela when she realizes that Angela had provoked Cole into walking out on their wedding. Although Melissa tries to seek comfort with Greg, she cannot put Cole out of her mind. After arguing with Melissa, Cole swallows his pride, reunites with her and marries her in a meadow in a small private ceremony. Lance proposes to Lorraine and surprisingly receives Angela's support. Unfortunately, Judge Holder has denied a change of venue for Lance's trial. Before Lorraine has a chance to discuss her pregnancy and engagement with Richard, Angela deviously provides him with the information. In turn, Richard confronts Lorraine, who begs him to be happy for her. Instead, Richard throws her out of the house, telling her that, as far as he's concerned, she is dead.

Without Angela's knowledge, Lance trades his interest in The New Globe for Richard Channing's radio station to have a showcase for Apollonia's singing career. Angela tries unsuccessfully to buy Terry's land and in retaliation goads Terry into investing in Tuscany Downs. Angela then persuades the Board of Supervisors to approve a new irrigation system, which would place the land on which Chase is working under water. As Maggie is recovering, she tells Angela off. In the meantime, Peter pushes Angela to set a date for their wedding. Father Christopher makes peace between Melissa, Cole and Robin, but Melissa gives him reason to worry when she tells him she doesn't love Cole anymore. At a honky-tonk, where Lance has arranged for Apollonia to demonstrate her singing, Emma meets a dashing truck driver named Dwayne.

At the party announcing her engagement to Peter Stavros, Angela shocks the gathered guests by revealing that Cole is the father of Robin's baby. Still smarting from having been outmaneuvered by Chase on the valley's water conservation project, Angela prepares an unusual method of revenge. Moreover, she sues Lance and Richard over their newspaper and radio station swap. In order to showcase Apollonia's songs, Lance changes his station from all-talk to all-rock. After Melissa receives her annulment from Lance, Father Christopher urges her and Cole to sanctify their marriage in the eyes of the church. Richard questions Jordan about her past and is puzzled by her reaction.

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.