In his new role on the Tuscany Valley County Board of Supervisors, Chase meets resistance in his efforts to break Angela's grip on county water supplies. When Melissa tells Carlo about her ambitions to control Falcon Crest, Carlo informs his daughter that she faces a powerful rival in Richard Channing, who is rumored to have ties to the C.I.A. and the British Parliament. Richard shows his ruthlessness by firing The Globe's longtime editor-in-chief, Herb Talmadge, who was only a year from retirement and a pension. After Angela tells Richard that he looks nothing like his father Douglas, Richard explodes after she leaves, vowing to ruin her.

Melissa is grateful when Richard flies a neo-natal specialist in from Europe to keep her baby alive. Maggie travels to Los Angeles to meet with producer Darryl Clayton about her screenplay. After Darryl turns the script down, Angela meets Darryl in secret and agrees to invest in the film if he will keep Maggie occupied in Los Angeles. As a romantic relationship develops between Vickie Gioberti and her father's associate, Nick Hogan, Vickie finds out from Cole that Nick is married. Chase discovers that Angela is using all of Falcon Crest's investment funds to buy up stock in The New Globe. After Chase confides with Nick about his war with Angela and her attempt to take over the newspaper, Richard soon finds out and confronts Angela. As Joseph's condition improves, Cole vows to be a loving father. Richard puts a down payment on a house in Tuscany Valley.

Vicky talks Cole into informing their parents that Cole is the father of Melissa's baby, but the opportunity never comes up. Phillip has a romantic dinner with Amanda Croft, a beautiful woman in her fifties. There is chemistry between them, but Amanda is suspicious of Phillip's relationship with Angela. When Darryl seduces Maggie into a passionate kiss at his Malibu home, Maggie panics and flies back home to Chase. Just as Angela has nearly bought up enough New Globe stock to control the company, Richard announces he is going to issue two million dollars more of stock, which is a strategy that Angela and Phillip hadn't foreseen. However, Angela and Phillip secretly arrange for a Wall Street banker named Kenderson to approach the unwitting Richard. Kenderson proposes to underwrite the new stock issue thereby delaying the offer long enough for Angela to get control of the newspaper. Meanwhile, Chase's mother, Jacqueline, has researched Angela's business dealings in Europe and provides Ch

At the winery, Angela plays Lance and Cole against each other. Chase finds out that Richard is planning to use a false company front to buy up grapes at twice the going rate. Despite the threat from Richard, Jacqueline wants Chase to work with Richard against Angela. When Cole wants to tell Lance that he is the father of Melissa's child, Melissa strongly opposes it. Angela offers Darryl more money to maintain Maggie's hopes of getting her script produced. In spite of bribing Richard's banker, Kenderson, into postponing the new stock issue, Angela still needs Chase's votes on The New Globe board to take over the newspaper. When Chase arrives at Richard's office to deliver a construction injunction on his new winery, Jacqueline surprises both of them with news that she gave Richard up for adoption when he was a baby, which means that Richard and Chase are half-brothers.

Richard rejects Jacqueline's explanation of why she gave him up for adoption. Despite being cleared of charges for Carlo Agretti's murder, Cole is continually harassed by the police and the community. By making an insincere appeal to their brotherly bond, Richard asks Chase to vote against Angela's take-over bid of The New Globe's board. In turn, Chase makes Richard give up construction of his winery, in exchange for his votes. Lance and his date Brenda attend Angela's annual Founder's Day Party at which Angela later becomes furious when she catches them in bed together. Richard and Melissa not only confess their attraction to each other, but Richard also announces to the entire party that he finally has found his mother, Jacqueline. Angela then publicly denounces Jacqueline for ruining her marriage with Douglas.

Angela's Founders' Day Party is in disarray following Richard's announcement that Jacqueline is his mother. When Chase confronts Richard on the veranda, Richard reasons he did not promise to keep Jacqueline's secret, only Chase's. When Angie turns on Jacqueline, Chase suggests taking her home. After Richard calls his mother an adulteress, Chase strikes his half-brother, and subsequently Chase and Maggie whisk Jacqueline away. The next morning, Chase regrets hitting Richard, while Jacqueline believes that the events of the previous night are in the past. She also understands Richard's bitterness, although Chase may never trust Richard again. At Falcon Crest, Melissa overhears Lance making plans to meet Lori. Melissa's attorneys are still evaluating all offers. Nick and Sheila, in their bedroom, share a moment as they dress.

During breakfast, Lance presents the paper for Melissa to see and thinks he is off the hook. However, Melissa knows that Richard printed this because she would not sell him her father's property. When Angie learns that Richard's evidence is from the paternity results that Lance gave him, Angie denounces Lance's inheritance. At home, Cole, referring to the same article, thinks Melissa finally told the truth about Cole's fatherhood to Joseph. Although Cole's murder charges were dropped, Chase knows they will never hear the end of this until Carlo Agretti's murderer is found. At the hospital, Angie visits Elliot McKay, who, although quite ill, defiantly rejects Angie's offer to buy his vineyard. In town, Vickie meets Nick, who professes his love for her. At The Globe, Melissa confronts Richard about the newspaper article and when Richard refuses to print a retraction, Melissa threatens to sue him for libel. Richard welcomes the extra publicity.

At Lori's, Lance tries to delay Lori from getting out of bed. Lori is irritated that Lance keeps procrastinating in looking for work, since it has been a week since Angela threw Lance out of Falcon Crest. Ultimately, Lori gives in, and they make love. At Chase's office, Chase catches heat from Sheriff Robbins about going to the D.A. with Carlo Agretti's letter from Angela. Robbins doesn't believe the letter incriminates Angie in Carlo's murder. In Richard's office, Diana informs Richard that nearly everyone but Angela has accepted the invitation to Richard's housewarming at the McKay place. Richard is confident Angie will be there, since the party will have three of the nation's most respected wine critics. Richard wants his new neighbors to realize that buying the McKay vineyards was just ""the first step of a much longer journey."" At Falcon Crest, Angie not only tells Julia she has decided to go to Richard's party, but that Angie has the ability to be flexible, unlike Lance. Angie thr

In the morning, Melissa and Lance linger in bed at Falcon Crest. Chao-li enters with breakfast and scolds Lance for wasting time in bed when he should be helping Chase with the inventory. After Chao-li exits, Melissa asks Lance if he has found his father. When Lance answers no, Melissa suggests that they ask Richard Channing to help them. Melissa and Lance also realize that they hold the key, the Agretti Vineyard, to getting written back into Angela's will. Back in Paris, in a sidewalk cafe, as Angie and Phillip enjoy the view, Angie invites him to join her in New York, but will not reveal what her business is there. At the Falcon Crest Winery Lab, Cole argues with Chase about continuing with the investigation because Cole is beginning to think that his mother is right. At a Tuscany café, Darryl and Maggie are arguing about the changes made in Maggie's script. Darryl then insinuates that Maggie's relationship with Chase is not as strong as she led him to believe. Maggie tells Darryl th

In the morning, Chase encounters Sheriff Robbins, who is running out of the county building. Robbins has obtained the forensic report on Henri Denault and wants to ask Richard Channing some questions. Chase explains that he has evidence that Carlo Agretti was blackmailing Richard. Richard is dictating Denault's obituary to Diana for the newspaper when Robbins and Chase arrive at Richard's house. After Robbins informs Richard that there were signs of struggle on Denault's body, Robbins wants to examine Richard's clothing from that day. In response, Richard tells them to get search warrants and slams the door in their faces. Later, Richard decides to give Lance all the information on Tony Cumson. At Falcon Crest, Lance tells Melissa that Diana Hunter called to tell him that Tony is working in San Diego as an offshore consultant for an oil company. Lance tells Melissa that if Julia travels to San Diego, she will never be able to show her face at Falcon Crest again. On the veranda, Angie q