Bobby is arrested for assaulting Peter, but Sydney later convinces Amanda to have the charges dropped. Peter makes a deal with Billy's client so that he can pay off Alycia and escape her influence. Alycia takes over Bobby's company. ""Betsy"" throws the couch off the deck and sets it on fire, and later tries to maim Michael. Jake is furious to learn that Jane sabotaged Richard's show. He gets drunk during a fashion convention and sleeps with a stranger. The woman is later hired as Jane's new assistant. Alan outs himself to a tabloid because he can no longer live a lie. Matt is hesitant to take him back.

Amanda and Peter continue to fight constantly. Peter decides to stay with Michael and Kimberly for a while. He spends one night on the McBrides' couch after drinking heavily. While he is sleeping, Taylor stares at him and talks about how much she missed him. Amanda rents the restaurant for the night and reconciles with Peter. When Jake refuses to respond, Alison confronts Jane about her loony behavior. Megan insists that Michael doesn't need to know anything about her. Kimberly undergoes an MRI to determine the cause of her headaches. Kyle comforts Sydney after she has a disastrous blind date with an acquaintance of Samantha's. Matt expresses a romantic interest in Dan.

Amanda and Kyle seek divorces so that their spouses can't get a cut of the jazz club. Sydney decides to give up her lawsuit for a $50,000 settlement because she doesn't want to hurt Craig. Harry threatens to turn her in to the cops. Peter becomes increasingly abusive toward Taylor, and nearly hits her. She and Michael plot to knock him off his pedestal. Billy and Sam lie to the police about Reilly's whereabouts. They are arrested after Amanda tells the cops that Reilly has been staying in the building. Jennifer takes a waitress job at a strip club, although Megan warns that she may be in over her head. Jake and Alison blow a chance at adoption when they are caught drinking heavily. They decide to leave Los Angeles. Matt and Denise bicker over their temporary custody arrangement.

Craig's ad agency collapses after Eric pressures his investors. Kyle accuses Amanda of being insensitive to Craig's situation. She offers Craig a job, which he rejects. Billy nearly proposes to Samantha, but backs off. When Sam says that she wants to marry him, he declares that he is not ready for marriage. She leaves him. Kyle is annoyed when Eric decides to move to Los Angeles. Michael accompanies Peter to a medical conference in Santa Barbara to escape Taylor's demands that he ""service"" her. He is left completely exhausted when both Taylor and a suddenly conciliatory Megan show up at his hotel. Brett's ex-wife, Lexi, comes to town to discuss their financial arrangement. She and Peter are instantly drawn to each other. Taylor is certain that Michael has gotten her pregnant. Mrs. Shaw warns Brett to stay away from Michael, but Brett says that he is developing a plan to ruin him.

Eric agrees to cease his takeover of the restaurant and jazz club if Amanda sleeps with him. Megan quits her job after learning of the offer. She shares the news with Taylor, who tries to blackmail Amanda into going through with it. Someone torments Michael by planting items that belonged to Kimberly around his home and office. Peter and Lexi tell him about Brett's relationship with Kimberly. Michael confronts Brett, who is arrested for punching him. Michael's stalker fires shots at him at the beach house. Craig gives Jennifer a car as a reward for her success in promoting the cauterizer at a medical supplies convention. Lexi hides a pill addiction from Peter. Sam demands an expensive wedding dress.

Christine tells Kyle to move on with his life. She declines Amanda's wedding invitation, but later has a change of heart and comes to Los Angeles. Peter shows up in Sterling's hotel room with a tape recorder in the hopes of proving that Sterling is to blame for their rift. Lexi's father collapses during the argument and later dies. Megan is jealous when Brett comforts Lexi. A gunshot victim named Spider convinces Michael that he can get rich by starting a clinic in the man's neighborhood. Michael persuades his family to invest money in the venture. Billy continues to pose as Craig, but Jennifer is forced to tell Mia the ""truth"" after she catches Billy with Samantha.

Kyle does not show for the wedding after discovering a suicide note from Christine. He finds her car parked on the railroad tracks, and pulls her to safety. Amanda postpones the ceremony until Kyle has resolved the situation. Christine receives a special visit from Nick in the hospital. Lexi refuses to speak to Peter after hearing the recording of his argument with her father. Spider agrees to provide Michael with ""protection"" if he treats his injured friends without reporting them to the authorities. Jennifer offers Billy a sympathetic ear, and advises Sam to escalate her flirtation with Jeff.

Overcome with guilt after kissing Alex, Jane hides out at a hotel. She fears that she is making a huge mistake by re-marrying Michael. She suffers a panic attack and passes out. Amanda goes to the church to tell a heartbroken Michael that the wedding is off. Jane decides that she wants to marry Michael after all. Michael refuses to talk to her, but Peter ambushes him with a ceremony at the hospital. Michael agrees to marry Jane after hearing her vows. Alex shows up at the reception and leads Michael to believe that he slept with Jane. Michael gets drunk and humiliates Jane with accusations of infidelity. She seeks refuge at Alex's house, only to discover that he is not using the clothing designed during her trip to Chicago. Alex admits that he had invented a work emergency in the hopes of getting closer to Jane. During the reception, Megan catches Ryan and Lexi in a compromising position in a bathroom. She tries to drink away her sorrow, and finds comfort with Michael. While heavily in

Amanda is not seriously injured, but loses the baby. Kyle refuses to acknowledge that the child was his, and leaves Peter to break the news. Eve vanishes, and her parole officer warns Peter that she could be arrested unless she resurfaces. Eve stays on the boat of her former cellmate, Jackie. They plan to sail away to Mexico, but Jackie tips off Peter, who convinces Eve to return home. Kyle decides to run away to Boston. Peter discovers that Kyle is not sterile. He has Amanda flown to the airport in a chopper so that she can stop Kyle from leaving. Peter and Jane see the tapes of Michael with Audrey. Jane dumps him again, and buys the beach house with a loan from her father. Peter takes pity on his partner and lets him keep his job. Lexi learns that Ryan has been engaged three times. She pressures Megan to propose in the hopes of exploiting Ryan's fear of commitment.

Michael and Ryan get into a scuffle, and Megan cracks Ryan over the head with a lamp. Lexi tends to Ryan's wounds and convinces him to sleep with her. Megan finally learns that Ryan has a daughter. Sarah overhears Terry threatening to keep her away from Ryan forever. Ryan decides to have Sarah come live with him. He and Lexi try to visit her, but discover that she has run away. Sarah turns up on Megan's doorstep. Amanda devotes all her time to landing the account of millionaire Tony Marlin. When Eve joins Amanda and Tony for an evening out, drunken college guys trash the club. Tony hints that he will only sign with AWA if Amanda helps him land Eve. Kyle and Jane nearly kiss and later dine together. Dr. Shulman stops interfering with hospital business after she and Dr. Visconti fall for each other.