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.

Melissa's desperate attempts to keep the baby result in a car chase that ends when the car carrying her, Chase, Maggie, Richard and Dan plunges into San Francisco Bay. Angela discovers that her child, whom she previously believed to have died in childbirth, is alive and ready to return to haunt her. When Angela and Peter reconcile and she tries to buy Peter's freedom, Peter, facing murder charges, flees with Kit.

In the aftermath of the earthquake, aftershocks rock the region and the people of the Tuscany Valley struggle to cope with the loss of property and loved ones. Father Bob transforms his church into a field hospital for the earthquake victims and as an information center for concerned friends and relatives. As the death toll mounts in the valley, Maggie and Cole wait in a San Francisco hospital for the doctor's prognosis of Chase's gunshot wound.

While Chase buries himself in his business deals and his political campaign, Maggie agonizes over the problems of her children, but mostly about her baby. While Cole takes his unhappiness out on his family, Vicky grows closer to Dan Fixx. With her paternity tests inconclusive, Maggie's fears increase along with her determination. Chase and Tony discover that their vines are withering. Angela and Lance fight over his association with The Globe and her obsession with Dan Fixx. Meredith starts her seduction of Richard Channing. Lance conspires with Karlotti to take over Emma's stock certificates in The New Globe. A hit man sees through Kit's disguise.

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.

As Maggie fights her loneliness, Chase struggles to save his vineyards, and Angela strives for her freedom. Vicky allows her parent's problems to affect her relationship with Dan Fixx. As Chase's marital problems reflect on his campaign for county supervisor, he and Maggie face the facts about their troubled marriage. Even though Peter is troubled over Angela's innocence or guilt, he loyally stands by her. Richard is determined to defeat Lance's attempt at a takeover of The New Globe as the specter of Miss Jones begins to haunt him. Kit succumbs to Tony's charm, but is terrorized by Stafford.

Peter threatens Angela and Roland Saunders as he tries to discover their connection to Kit Marlowe. Due to Angela's interest in Maggie's baby, Maggie concludes that she must give the baby up for adoption if the child is to lead a decent life. After Maggie refuses to allow Emma and Karlotti have her child, the two instead apply to adopt a child. While Angela plans Dan and Vickie's engagement party, she promises to give them a vineyard. Peter forces Tony to tell him about Kit. After Chase makes Gabrielle a proposition, he offers Lance a partnership with him and Tony. Angela plans to solve the mystery of Kit Marlowe.

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.

While Maggie confesses the reasons for her distress to Chase, Wainwright changes his tactics to ingratiate himself with their daughter, Vicky. When Richard Channing discovers Kit's secret, he is able to use it to his advantage. Lance and Melissa find a common bond. Tony Cumson tries to reconcile his father-son relationship with Lance, but the wounds are too deep. Angela hosts a party for the opening of her spa.

After Vicky slips from his grasp, Wainwright returns to the valley and forces his way into the Agretti's house, attacking Chase in his pursuit of Maggie. When Lance can no longer compete with Angela's preoccupation with Dan Fixx, he surprises his grandmother with a new venture. Angela explains to Peter why she is taking such care of Dan, even after The New Globe reveals him as an ex-convict. At the last minute, Richard springs his trap on Miss Jones to save Chase's life. Cole disapproves of his father's new partnership with Tony Cumson. Kit tries to intercede in the matter of Angela's stolen checks because of the pain it is causing Peter.

In addition to a huge ransom, the kidnappers demand that Meredith, the only one who can identify them, be handed over to them in exchange for Richard's son. Richard learns that Angela was responsible for putting Meredith in his household and vows that she will pay for what she has done to him. Concerned about Vicky's relationship with Dan Fixx, Chase travels to Oklahoma to determine for himself the type of man his daughter is involved with, and is then beaten up by the small town's corrupt chief of police and his henchmen. Lance refuses to declare Melissa mentally incompetent after her breakdown. After selling his winery to Lance, Eric talks Angela into letting him manage the spa. Emma discovers that she is not pregnant with Dwayne's child and now wants to have a baby with Karlotti.

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.

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.

Tony and Lance assist each other as circumstantial evidence implicates them in murder, but it is to no avail when Angela goes back on her word. Angela breaks her promise to Lance when she realizes that it is more important to protect her grandson than his father. Vickie and Eric's actions at the party make Dan face a dilemma. Francine Hope is able to help Maggie and Chase, who are then able to contact the lawyer who arranged the adoption of their baby. Richard is finally able to realize his revenge on Angela. When Melissa entertains as ""Veronique, the Slumming Socialite"" on amateur night at a San Francisco nightclub, she becomes all the rage.

When Emma and Karlotti's church wedding concludes, Emma discovers how great her husband really is. As the couple stands up before Father Bob for their nuptials, Karlotti's reputation as a lover is enhanced. In her attempts to bring Lance back home, Angela humiliates Melissa in front of Lance, Richard and Dan. Maggie and Chase search for clues to find their baby in Boston. When Lance discovers Kit's whereabouts, he plans to intercept her in his quest to help his father. Wilkerson reports to Angela that he has Tony ""nailed to the wall."" Vickie and Eric return from their escapade.

Preparing to disappear, Kit, with Stafford advising her, lays the groundwork to make her fake suicide plausible and realizes that she will sever many important ties. Angela has a dinner party for Peter's birthday. Seeking help for her troubled marriage, Melissa looks in the wrong places. Maggie discovers that her baby may be born with problems and turns Chase away when he fails to understand her feelings. Meredith hires her former supervisor to rescue Erin Jones, while Angela offers Vicky a new job at the spa.

Due to Melissa's peculiar behavior, Lance loses his chance to join an exclusive club, which alienates him from Joseph. After Richard becomes the new distributor for Angela's wines, Angela hires a new lawyer. Vicky and Angela become concerned about Dan's preoccupation with Suzanne. Richard tries to recruit Peter in his vendetta against Angela. Lance enlists Chase and Maggie to help him with Joseph.

After the specter of Jeff Wainwright haunts Maggie, she overcomes her intrinisic fear of firearms and purchases a gun for protection. When Maggie's daughter Vickie returns home, she admits that not only has she has gone through two divorces, but that she lied about being a famous ballet dancer. Despite the ballistics test results, Maggie refuses to believe that a member could be responsible for shooting Chase. At Falcon Crest, Angela considers a foreclosure. In spite of a few close calls, Kit succeeds in hiding her past from Peter.

As Chase hires a private detective to protect Maggie, he is unaware that his daughter also needs protection. Troubled by Kit's denunciation of Fixx, Lance fires Kit, while Angela plans to pit Lance against Fixx. Julia informs the family about an unexpected decision. Miss Jones falls for Richard's scheme and both fishermen think they have caught the big one. Richard also snares Angela to bail him out of their racetrack. Lance and Melissa return from their wedding and Fixx becomes suspicious of Kit's mysterious activities. Wainwright gets Vicky under his control.

A newspaper article alerts Vicky to the danger she's in with Wainwright, but, when he realizes she knows the truth about him, he terrorizes her and forces her to masquerade as her mother. Lance and Melissa have a wedding reception, which Angela reluctantly hosts, bringing forth mixed emotions from the guests. Chase and Melissa disagree about Joseph. Lance tries to persuade his father to finance his partnership in Melissa's winery, but Tony accepts Chase's offer. Emma's date, Richard, informs Angela that Tuscany Downs is being condemned. Peter and Angela argue over her stolen checks. When Maggie confronts Richard over his article on Wainwright, Chase approaches with fists flying.

Rushing to protect Chase, Dan Fixx lands in jail, and Chase has to try to rescue him, as well as himself, from corrupt officers. Angela rejects Peter's proposal to join him in Monte Carlo and is shocked at his response. Richard happily tells Maggie news of his son and Vicky misunderstands the kiss her mother gives him. Emma learns the truth about Karlotti, but she doesn't change her feelings about him. Peter summons Tony to Monte Carlo to discuss Skyler. Angela and Richard confront each other. Lance is concerned over Melissa's reactions.

Angela interferes in the lives of Chase, Richard, Maggie, Vickie and Dan. Vickie and Dan's romance is complicated by Angela's peculiar moral code. When Angela accuses Richard of fathering Maggie's expected child, her manipulations make Chase's altruistic defense of troubled vineyard owners seem like a play for personal gain, which puts a wedge in his relationship with Gabrielle. Melissa's troubled behavior brings a closer understanding between Lance and Tony. Peter plans to win Angela back and break Richard at the same time, while Richard thinks Kit Marlowe can be played to bring Peter to his side.