Karen hears that the case against Frank and Roy has been dropped due to a technicality. Furious, she barges into the Federal Prosecutor's office, who happens to be Marion Patrick McKenzie. 'Mac' gives Karen info on the case, and kisses her. Karen fires Gary, and hires Wayne, unaware that he has a scrapbook about Sid's death. Val has been living at a motel, but decides to stay with Rusty and Cricket on their ranch. Gary, now living with Abby, goes there to try to win Val back. Rusty beats him up. Abby's furious that Gary went to see Val. Val returns home and kicks Gary out. Gary goes back to Abby. Abby has been sending JR every other chapter of Val's book.

Joe warns Mac that Karen is using the court transcripts to try and go after Frank and Roy herself. Karen asks Wayne to negotiate a parts deal, and he goes to Frank and Roy, who set him up with their front men Marshall and Angelo. J.R. has one of his companies buy Val's publishing company. J.R. also meets with Abby, who will only give him the rest of the book if he'll tell her about Jock's will. J.R. tells her that Gary's coming into millions, and it isn't dependent on Val. Laura's water breaks. Richard rushes her to the hospital, but the car goes off the road and Laura gives birth in the car. The baby isn't breathing, but Richard saves him by giving him mouth-to-mouth. They name their new son Daniel.

Karen goes through the KLMotors books and finds checks to West Century Auto, Frank and Roy's company. Karen invests money in Richard's restaurant, because Laura is concerned that Richard is spending too much money. Karen is being followed. Kenny's boss won't let him make a demo with Ciji, so Kenny and Gary decide to make a demo with her on their own. Val's publicist, Bess Riker sends a messenger, Chip Roberts to drop off photos at Val's. He charms Val and Lilimae, and tells him he's a publicist. Back at the office, Bess tells Chip that if he thinks he's so hot he can be Val's publicist. Val appears on The Mike Douglas Show.