In his quest for land adjoining Falcon Crest, Gustav Riebmann approaches Sam Giannini and when he refuses to sell, Gustav has Spheeris pay Giannini a special visit that night. Richard acquires the radio station KRDC, promptly fires the entire staff and makes Frank Taggert the new general manager. Chase and Maggie travel to New York, trying to uncover her past. Joel gives Terry written proof that they are still married, and it takes another $10,000 check to keep him quiet. Lorraine Prescott, Richard's stepdaughter from a previous marriage, re-enters his life, which is news that leaves Pamela stunned. Angela believes Richard's fierce protectiveness of Lorraine may be the weakness she's been looking for in him. Julia appears to Emma again on the porch, asking for money, but insists that Angela mustn't know.

Sheriff Robbins notifies Chase, Maggie and Cole that Sam Giannini has been murdered, apparently during a robbery. Lance uses his new power to exploit Sam's death in The Globe. Maggie starts work writing copy at Richard's new radio station. Stephanie, Richard's ex-wife, comes to town and enlightens her daughter about Richard's past behavior, warning her that he may try to use her too. Gustav offers Mary Giannini his condolences and threatens to kill her if she does not sell her property to him. Chase has obtained a copy of the F.A.A. report and is enraged that someone is lying to frame him. In Italy, after Francesca Gioberti faces disaster at her vineyards, she travels to Falcon Crest, surprising Angela and seeking assistance from her cousins.

Angela is horrified when she learns that Francesca has evidence that she is Angela's half-sister and legal heir to one third of Falcon Crest. Angela then uses it to her advantage by making a deal with her to buy Francesca's third in order to control more of Falcon Crest than Chase. At Lucas Crosby's home, Julia tells him she is tired of running and being afraid someone will recognize her. However, when she goes to the police to turn herself in, they do not believe she is really Julia Cumson. Emma helps Chase obtain evidence that Buzz Whitehead was bribed into lying to the F.A.A. investigator, and Senator Silverlake was pressured into suspending Chase's license. Cole revives his love for Melissa, maintaining that they will have an open relationship, but Greg promises to destroy their relationship.

Chase uses Emma's findings and confronts Senator Silverlake in Washington, D.C. with the evidence that he was bribed into faking the F.A.A. reports. Senator Silverlake confesses, absolving Chase of all blame in the crash. Lorraine demands that Lance print a retraction to an article that ties Richard Channing to the criminal underworld. Lance is more interested in seduction than retractions, but Lorraine strives to ignore his advances. Both Richard and Gustav court Francesca in order to get closer to her share of Falcon Crest. However, Angela and Greg persuade her to sign a contract for her share of the vineyards. Private Investigator Mike Harris informs Maggie that her real father was killed in World War II. Melissa tells Greg she cannot see him anymore as it will jeopardize her relationship with Cole, but Greg is persistent in pursuing her.

When Chase hears that Jasper's will is being re-opened, he becomes suspicious of Angela's motives and confronts her. Chase discovers that Francesca is selling her third of Falcon Crest to Angela in order to save her vineyards in Italy, but Francesca is confused since Angela told her that Chase would be pleased. Cole decides he loves Melissa enough to move in with her, even against his parents' warning. Richard tries unsuccessfully to keep Lance from seeing Lorraine and warns him not to hurt his stepdaughter. Francesca decides to throw a farewell party before returning to Italy. She performs the tarantella and berates her family for their greed and hatred. Jean-Louis helps Francesca by pilfering her agreement from Angela's safe. During the night, Gustav's henchmen tail Julia, seize her and drive off.

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

Richard, thrilled with his one-third ownership of Falcon Crest, makes plans to acquire more harvests. He reveals to Terry that he knows Joel is blackmailing her and promises to help her if she sells him her harvest. In the fake hospital, Spheeris and Riebmann continue to torment Julia, telling her that Angela has granted them permission to perform a frontal lobotomy on her. Ben Landale, claiming to work for the U.S. Government, arrives at Falcon Crest with orders to look for Johann Riebmann. With Melissa and Lance's divorce finalized, Melissa agrees to marry Cole. Mike Harris, who is secretly working with Angela, finds Maggie's mother, Charlotte Pershing, and takes her to the radio station. Angela informs Greg that she located Maggie's mother because her compulsive gambling habits will create major problems for Chase and Maggie.

Angela reinstates Lance as her sole heir, cutting Melissa out of the will. Posing as her psychiatrist, Gustav manipulates Julia into trusting him. Ben and Chase check Falcon Crest for surveillance devices and when Gustav hears them discuss Henri DeNault with Angela, he orders Spheeris to investigate Ben immediately. Greg's advances towards Melissa are putting a strain on Cole's trust in Melissa. Joel returns the necklace he stole from Terry and presents her with an engagement ring. She hesitantly agrees to marry him in two weeks. At the Turf Club, Angela tries to make Charlotte succumb to her weakness for gambling. Chase keeps Maggie in the dark about his plans with Ben to search for Johann Riebmann in Europe.

Melissa, enraged over being written out of Angela's will, solicits Joel's help by offering him $50,000 to discredit Lance in Angela's eyes. Joel tricks Lance into meeting him privately and locks him in a deserted warehouse. Disguising himself as Lance, he uses Lance's Porsche to drive Angela off the road. As the real Lance is released from the warehouse, he is promptly arrested for the attempted murder of Angela Channing. Angela reveals her plan to Reardon to ally with Richard in order to get Chase to cease his champagne operation. Gustav orders Spheeris to follow Chase and Ben to Paris, where they are searching for clues to Johann Riebmann's whereabouts. When Ben and Chase are trapped in a set-up, Ben is killed. At Richard's racetrack, Charlotte begins to lose control over her gambling impulses.

Lance calls Falcon Crest to get bailed out, but Angela grabs the phone and tells him that he can rot in jail. Ralph Delaney arrives and says that The New Globe will pay Lance's bail. Richard wants Maggie to do a story on Lance and exploit his situation. When Lorraine hears this, she is furious and accuses Richard of slanting the news. Chase tightens security at home and purchases a gun. He learns from Herb Boutilier in Washington, D.C. that Ben never worked for the government and receives a phone call warning him to stop looking for Ben. Charlotte and her old gambling partner meet and begin to lose money at the track. Richard sends Joel to a drug rehabilitation center in order to get him away from Terry. Although Lance insists he was framed, Angela refuses to believe him, and he is again disinherited. Lance moves in with Lorraine at the Tuscany Inn.

Maggie may be Lance's only hope to prove his innocence as she investigates his case for her story. She goes to Angela with the evidence in support of Lance, and to his amazement, Angela admits that she now believes his story and promises to help him by letting Greg Reardon defend him, provided that he stop seeing Lorraine. Lance and Lorraine part miserably, planning to reunite after he is acquitted. Charlotte is unsuccessful in retrieving Maggie's pearls from the pawnshop, and Maggie cries when she discovers them missing. From his surveillance room, Riebmann hears Angela's plans to make Lorraine her heir, and soon begins to court her. Cole and Chase discover a shocking plan to undermine their champagne production.

After years of hard work, Chase and Cole dump hundreds of gallons of tainted champagne as Richard and Angela look on. Chase is convinced one of them is responsible for the poisoning. Richard's obsession with trying to destroy Lance prompts Maggie to quit her job at the radio station. Shaken over her mother's sudden disappearance, Maggie travels to Los Angeles to find her. Upon meeting with his stepfather, Alexander Nicolau, Chase uncovers his mother's dangerous connections with the cartel and is determined to uncover why Riebmann so fervently wants Tuscany Valley. Back in Tuscany Valley, reporters and spectators jam the courthouse for Lance's preliminary hearing. Richard is immensely pleased with Judge Holder's ruling that Lance must still stand trial for attempted murder.

As Richard's first shipment of Francesca's wine is delivered for bottling, the truck is hijacked and the tanker is drained. Richard suspects both Chase and Cole, and after Richard and Chase fight, Chase concludes that the saboteur may be Riebmann and the cartel. He also details his suspicions that DeBercy may actually be Riebmann. Richard is surprised at the extent of Chase's knowledge about the cartel and so is Riebmann, who is listening from his surveillance room and realizes he must act quickly before his identity is revealed. He continues to use Emma to gather more useful information to further his plot. Meanwhile, Lorraine discovers that she is pregnant with Lance's baby. While Chase, Richard and Greg go to the authorities, Angela receives an invitation at gunpoint to visit Mr. Riebmann and his houseguest, Julia.

Angela's kidnapping brings her face to face with Julia at Riebmann's house, while Chase, Richard and Greg plan a mission to save her. They play into Riebmann's hands, gain control of the guards at his house and escape. Richard follows Riebmann into the old mineshaft where the treasure has been buried. As the mine begins to collapse, Chase, Pamela and Chao-Li stand by in horror. Richard manages to escape, but Gustav and Renee are buried with the treasure. Lorraine reveals to Lance that she is planning an abortion procedure to avoid further complicating his life, but Lance adamantly opposes the idea. Father Bob provides disappointing news for Melissa and Cole when he mentions that the annulment of her marriage to Lance could take up to two years. They decide to plan for a civil ceremony the following week.

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.

Greg coaches Lance on his trial testimony as they nervously wait to hear whether the trial will be postponed. Cole and Melissa happily honeymoon in Tahiti. Chase convinces Connie Giannini to keep the land she inherited upon her mother's death rather than sell it to Angela. At KRDC, Pamela advises Richard not to reject Lorraine just when she really needs him. When Richard resists Lorraine's attempt to reconcile, she has no choice but to remain at Falcon Crest, where she is quickly learning that Angela cares only about heirs. The next day at breakfast, Greg soberly announces to the family that the trial extension was denied. Horrified, Lance and Lorraine realize that he will go on trial that Monday.

Lance stands trial for the attempted murder of Angela, but his real court battle is against Richard Channing, who has secretly bribed the judge. Richard discovers that Greg and the prosecutor, Caroline Earle, have agreed to a deal that would considerably lighten his Lance's sentence. He passes this information to Judge Holder, who, on instruction, rejects such an arrangement. Cole and Melissa consider hiring a surrogate mother to bear them a child. Chase decides to hire Connie to help Cole with their champagne production. Cassandra and Damon come closer to an opportunity for revenge on Angela. Cassandra must keep their identity and plan hidden from Richard, who finds Cassandra intriguing. Melissa's cousin, Robin, arrives at the Gioberti household for an extended visit and hungrily sets her sights on Cole and the mansion.

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.

Angela takes advantage of Lance's conviction to assume his job as publisher of The New Globe. Richard provokes Lance into a fight at a restaurant, forcing Lance into hiding to avoid being returned to custody. Angela realizes that if Falcon Crest expands to accommodate a contract with Helios Foods, Richard and Chase will fall heavily into debt, and she will once again be the sole owner of the wine empire. She pushes them to agree to bid on the contract. Maggie prefers that Chase sell out and get away from Angela, but he refuses. Cassandra and Damon push the Helios deal to advance their own plans for a takeover. Late that night, Robin tries to seduce Cole with the idea that they could give Melissa the child she wants.

Richard and Chase decide to go along with Angela and bid on the Helios deal. Chase looks to Maggie for support in his decision not to sell out, but she offers none. Melissa reluctantly pays Pamela $100,000 to keep silent about the hiring of Joel McCarthy to frame Lance. Terry not only confesses her past connections with Joel to Greg, but also tells Greg where to find him. Moreover, Terry suspects that it was Joel who ran Angela off the road. When Emma and Lorraine team up against Angela to find Lance, they discover that Angela and Chao-Li have him hidden in Chinatown. Angela's wicked plan to break up the Gioberti marriage unfolds when she offers Maggie the position of acting publisher for The Globe. Chase vehemently objects to the idea, but Maggie welcomes the challenge.

At the winery, Chase joins Connie and hugs her, announcing that he has received the loan necessary to bid with Angela. However, Connie's former suitor, Larry Michaelson, could threaten the bank deal. Cole realizes that Connie may be a threat of another kind. Greg hunts for Joel McCarthy and finds that he died at Camp Mary Jane of a drug overdose. He confronts Richard with his suspicions about Lance's framing, hoping he can force him to reveal his involvement. In Chinatown, Lance insists that Lorraine be included in Angela's plans to send him to Italy, and she makes the arrangements for them to meet at the boat. Pamela warns Angela that Richard and the police are on their way to Lance's hideout and Lance manages to escape. When Lorraine arrives and discovers that Lance is already gone, she rushes to the fire escape before her stepfather can detain her, and in a hurry, slips and plummets two stories to the street.

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.

In the hospital, Lorraine, depressed, misses Lance and laments her lost baby. In his jail cell, Lance reveals to Angela his fears about Lorraine's survival. Angela reassures him and promises that Greg is working on freeing him. At The New Globe, Pamela hands Maggie a cassette, explaining that Richard had taped all his conversations, and she had decided to validate his mistrust in her. When Maggie and Greg play the tape, they hear Richard and Judge Holder plot against Lance. Melissa breaks the news to Cole that she hired Joel McCarthy to frame Lance. Cole strikes back by informing her that her surrogate mother idea worked because Robin is pregnant. Due to the overwhelming evidence against him, Judge Holder is forced to release Lance. Ecstatic, Lance rushes to the hospital, where a judge marries him and Lorraine.

Angela's scheme to regain control of Falcon Crest falls through when she assumes Chase and Richard will be bankrupt after a competitor wins the Helios bid. However, she is unaware that Cassandra Wilder holds the liens on their shares. Cassandra's mother, Anna Rossini, has come for long-awaited vengeance against Angela, now that her daughter owns two-thirds of Falcon Crest. At the winery, Connie offers to make Chase a partner in Giannini Winery. Maggie walks in and catches them in a celebratory embrace. Enraged, she announces she will be moving out that evening. Angela testifies on Melissa's behalf, which gives her a lenient sentence of 60 days in jail, in return for the Agretti harvest. As Lorraine's condition deteriorates rapidly due to brain damage, Lance must sign the release to remove her from life-support systems. As Maggie and Richard comfort each other that evening, an explosion rips through his house, trapping them.