After being found unconscious, Angela is rushed to the hospital, where she slips into a coma. Lance has a difficult time managing Falcon Crest without Angela, particularly when business associates insist on negotiating with Angela, but fortunately, Pilar is able to help Lance deal with their distributor, Ned Vogel. Richard discovers that Michael was instrumental in Richard's loss of custody over his children. A power outage at the hospital forces the family to consider pulling the plug on Angela's life support.

With his continued influence over Emma, Charley upsets the family. After the bank calls in its loan, Richard saves Falcon Crest from Michael Sharpe. Encouraged by his sister-in-law, Genele Erickson, Frank Agretti goes to the bank with the power of attorney which Angela had given him prior to her aborted trip to Europe and takes over operation of Falcon Crest.

Due to Richard's testimony, the S.E.C. slaps Michael Sharpe with the largest fine in history. Lauren and her husband confront Michael about his schemes and their custody of Richard's children. Frank's obsession with the treacherous Genele escalates. Charley is relieved to hear that Emma's husband has apparently committed suicide, since his death removes the last obstacle for Charley to marry Emma. When the court gives control of Falcon Crest to Emma, she is overwhelmed by the notion of running the business. Emma's new husband Charley, however, has many ideas about running Falcon Crest.

As Michael Sharpe arranges for Richard to be killed, the contract eventually goes to Sal, Richard's acquaintance from prison. Instead of killing Richard, Sal offers to help him get back at Sharpe, but later pays with his life when Sharpe learns that Sal double-crossed him. After Sydney defies her husband and befriends Emma, Ian beats her. In order to get rid of Lance, Charley shows him a videotape of Pilar's liaison with Ned Vogel. Despite Pilar's pleas, Lance leaves enraged, just as Charley had hoped.

With a bullet wound in the chest, Charley disappears from Falcon Crest. Because Chris Agretti is missing, Sydney worries that Ian and Charley might have killed him. Sharpe gains control of Falcon Crest by threatening to press criminal charges against Emma for authorizing the release of tainted wine. Sharpe's son Danny provides his father with crucial evidence, which he found while on a date with Sydney. Richard suspects that Lauren's marital situation is worsening, while Lance resists renewing a sexual relationship with Pilar.

When Genele forces Frank out of his own home in order to entertain her lover Sharpe, Frank delivers the remains of Genele's sister and Frank's ex-wife Renee to the police, informing them that Genele killed her ten years before. Sydney tries to push Pilar and Lance back together. Sharpe is displeased when Lauren moves in with Richard after her ordeal with Walker. Sharpe tries to act as a business mentor for Danny.

Danny fights Sharpe's attempts to control his life and to make him break up with Sydney. After Sydney brings them back together, Lance and Pilar make plans to retake control of Falcon Crest. When Richard learns through Pilar that Genele was responsible for delivering his business secrets to Sharpe, he throws Genele out and attempts to reconcile with Lauren. Realizing that her brother's affection for her is more than just brotherly, Lauren decides she has to leave Sharpe's house.

Richard and Sharpe search for Lauren, who had grown tired of their fighting and ran off to work as a waitress in a diner. Sharpe attempts to convince Danny to drop Sydney, who wants Falcon Crest to return to the Channing's. When Lance and Pilar ask Sharpe what it would take for him to sell them Falcon Crest, Sharpe tells them to break up Sydney and Danny. When Lauren returns to Richard and the boys, she has to deal with Richard's continuing obsession with his dead wife Maggie.

After Genele intercepts stolen bonds that Sharpe is trafficking, she arranges for Richard to cash them. Lance, Pilar and Danny believe that things are finally turning around for the winery. Genele has to pay hush money to a witness, but Richard has decided to keep all the money as revenge for Genele's past deceit. When Richard has the bonds cashed under the name Sharpe, Sharpe assumes his son Danny did it under Sydney's influence. After Sharpe tampers with Sydney's car, Danny happens to borrow her car and ends up in an accident.

Richard knows that Sharpe was behind the sabotage that almost killed his son, Danny, and he has Johnny Sacco, the mechanic paid to tamper with Sydney's car, to prove it. In order to keep Danny and his estranged wife Anne from knowing his involvement in the accident, Sharpe transfers ownership of Falcon Crest to Richard. After Anne agrees to give her marriage with Sharpe a second chance, she changes her mind when Johnny Sacco arrives intoxicated at the Sharpe residence and tells Anne everything. Anne lets Sharpe in on a secret she's kept for 21 years: Richard is Danny's real father. After several months in a coma, Angela revives.

Sharpe reels from the news that his hated rival Richard is Danny's father. Richard's plans to run the winery with Lauren run into a snag when Angela returns after regaining consciousness. When Richard informs Angela that she has no legal claim to the winery, Angela pretends to give in, but she is secretly planning to block Richard's marriage to Lauren with the help of Michael Sharpe.