When Angela offers District Attorney Fields her support for the governorship in exchange for dropping the murder charges against Lance, he indignantly refuses; however, when Richard offers to hire Field's leukemic son to join the staff of The New Globe, Fields agrees to the deal. Lance, on the other hand, is not grateful; he wanted to prove his innocence in court. Although not charged with any crime, Maggie is guilt-ridden by the fact that she killed Senator Ryder, even though she did it in order to save Richard's life. After Nick Agretti is enraptured when he witnesses Pilar swimming nude, Angela informs him that she has learned some information he cannot release, revealing that the price for keeping the secret is Falcon Crest itself.

After Angela blackmails Nick with incriminating information about his past, Nick surrenders Falcon Crest to Angela. While Angela makes plans to rebuild the house, Nick regrets his deference to her and warns that he will not bend in the future. Nick decides to tell Ben the truth about his mother, which enrages the young man. Richard's newspaper prints the fact that Melissa had placed a phone call after Lance's departure, proving that Lance is innocent of her death. Richard warns Pilar not to let her affair with Lance interfere with Richard's takeover of the valley. When Frank's old friend Libby appears, Nick and Ben are surprised. Libby requests Frank to join her in Columbia to mine emeralds, which is an offer that disturbs Angela. As Emma and Cabot begin an intimate relationship, Cabot questions her true identity.

As Christmas arrives in Tuscany Valley, Frank agonizes over whether or not to leave his family to mine emeralds with Libby. Ben turns against Nick for lying to him about his mother. Unaware of Richard's assistance, Maggie is delighted with the overwhelming response to her special advertising offer. Richard offers to back Pilar's failing consortium through a blind company for a controlling interest. When Daniel Cabot discovers Emma's true identity, he abandons her. Although Angela celebrates the holiday by surrounding herself with family, Pilar's holiday is spoiled when she spots her brothers Tommy and Paco being chased by security officers. However, Christmas dinner at Pilar's home brings Nick and Ben closer together and Nick to admit his love for his father.

Angela is delighted when Emma announces her intention to marry the famous writer, R.D. Young, but her plans for the wedding conflict with Young's passion for privacy. Hurt by Lance's involvement with Cookie Nash, Pilar turns to Nick for consolation. Moreover, Angela discovers that it was Pilar who organized the consortium with Richard. When Maggie discovers that Tommy was present when her newspaper office was trashed, she must decide whether to give him a second chance.

Despite Angela's obvious opposition, Lance and Pilar decide to marry. Maggie, appalled at Richard's plans for the valley, leaves him. Hoping to prevent Lance and Pilar's marriage, Angela, who has made a deal with Sinclair, tells Lance that Pilar was well aware of Richard's business dealings; however, Pilar convinces him otherwise, and the wedding is definitely on. After Nick learns the seriousness of Anna's condition, he convinces her to allow him and Ben to care for her, provided that Ben not be told of her illness. After Raoul and his gang run Ben and Gabriel off the road, the gang leaves them unconscious on the roadside.

Michael, despondent at his mother's continued absence, runs away. Richard moves to block Angela's latest power play, while Frank Agretti returns to the Tuscany Valley. While Angela is prepared to help Maggie wrest custody of the children from Richard, Richard prepares to clip Angela's wings decisively in the matter of Glenbraddoch. Meanwhile, Michael's disappearance causes concern. Learning of Ben's accident, Frank Agretti returns to the valley, while Pilar and Lance agree to try to make their home at Falcon Crest.