Cole battles with Connie, resenting her interference in his champagne operation. However, Chase convinces her to stay on, not realizing she is thrilled to be working near him. In court, after the foreman announces that the jury cannot reach a verdict in Lance's case, Judge Holder orders the jury to deliberate again. After Maggie observes Richard and Holder meeting in the parking lot, she becomes determined to discover if they are conspiring against Lance. While Melissa fears the outcome if anyone discovers that she was responsible for Lance's arrest, her cousin Robin sees Melissa's search for a surrogate mother as the perfect opportunity to move closer to Cole. Cassandra and Damon use Richard and Cole to further establish themselves at Falcon Crest. After the foreman reads the verdict, Lance and his family hear Judge Holder sentence him to seven years in state prison.

Lance ardently resists Angela's orders to board the ship until he gets an answer to why Lorraine is not there. Telephoning Falcon Crest, Lance learns that Lorraine is in the hospital, where she lies in a coma. Risking everything, he speeds off in Angela's car to see her. Lance is recognized at the hospital, but gets a chance to see Lorraine and encourages her to keep fighting before two policemen take him away. Awakening from her coma the next day, Lorraine begs Richard to get Lance out of jail. On a tip from a Turf Club bartender, Greg digs up the proof needed to convict Melissa. He confronts her, insisting she turn herself in within 48 hours. Cole is once again kept in the dark as to his wife's dealings. He receives shocking news about his own past actions, however, when Melissa's cousin, Robin, arrives again at their doorstep.

When Angela discovers that Lance has shifted from publisher to rock radio impresario, she expels him from the mansion. After an all-night tryst in Dwayne's truck, Emma returns home to Angela. Peter's attentions finally make an impression on Angela, and she begins to take his marriage proposal seriously. Although Richard Channing and Cassandra Wilder mistrust one another, they plan a new beginning. Melissa tries to tell Father Christopher about her feelings for him. In a plan to save their land, Chase and Maggie enlist the help of Sheriff Gilmore, Terry and Wicker.

Although Angela is reluctant to change her name to Stavros and relinquish running her wine empire to marry Peter, they finally set the date. Refusing to lose Dwayne, Emma asks him to marry her. Richard proposes to Cassandra, believing he can only trust her if they are married. Cole and Melissa agree to a church wedding, but the bride becomes distraught when Father Christopher must perform the ceremony. Greg's persistence pays off when Jordan agrees to a date with him. Maggie receives an advance check for a novel she doesn't remember writing. A man from Apollonia's past re-enters her life and his actions disturb Lance. Angela loses her court battle to override Lance's exchange with Richard for the radio station.

Chase ignores his new grandchild until the baby needs an operation, then rallies to support Cole and Melissa. When Maggie's novel, ""Sudden Friends,"" debuts in The New Globe, Angela prepares to sue. After Chase loses the distributor for his wine, he makes an offer to Dwayne. Apollonia stars in a video and is offered a long tour, but Lance refuses to accompany her. Reardon stands by while J.J. Roberts announces his candidacy for election, much to Jordan's distress. Confused about his feelings for Melissa, Father Christopher wants to resign from the priesthood. Terry questions Richard Channing about her share of the profits from Tuscany Downs. After she orders a secret audit, she discovers Richard's skimming scheme and confronts him with her findings.

Sofia's attempt to reason with Phillippe about her father and Lance's imprisonment places her in the same predicament. However, a shootout at the chalet frees them all. After Lance fails to report to her at Falcon Crest, Angela flies to Europe with Reardon to find him, but they arrive too late to do any good. In the meantime, Emma and Dwayne find Ursula in Mexico and rescue her with the help of a flirtatious police captain. In order to even the score with Angela, Chase devises a ruse for one of the valley's vineyard owners. Jordan worries about her memory lapses, but begins to find rather unnerving clues to her behavior. Chase approves of Maggie's tour to promote her book. Joseph violently reacts to Melissa and Cole's continual disputes.

Reasoning that Angela would never give control of Falcon Crest to an outsider, Lance is convinced that Peter is hiding something from the rest of the family. At the winery, Emma reconciles with Dwayne. After Maggie rejects Jeff's advances, he continues to fantasize about her. After Jordan provides Terry information about Richard and Chase's secret business plans, Richard hires a detective to check on Jordan. Eric begins to enjoy the campaign to secure Melissa's grapes for Falcon Crest when he takes her dancing. Reardon is fired after he refuses to obey Peter's order to withdraw $30 million of Falcon Crest funds for him.

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.

Maggie's determination to keep her baby, regardless of the consequences, further alienates her from her family. Cole is adamant about leading his life away from the family, and Maggie has no choice but to give him her blessing. Vicki goes to see Dan Fixx, whom her parents disapprove. Chase accepts his wife's views on her upcoming motherhood. Angela attends Karlotti's seance, which is instrumental in giving Lance control of Emma's holdings. Chase and Tony discover vineyards contaminated from the dumping at Tuscany Downs, with evidence pointing to Angela's conspiracy to ruin her rivals. Fixx confides in Vicky. Lance moves to take over The Globe.

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.