As Angela prepares to travel to Greece, she leaves her grandson Lance in charge, though under the strict supervision of her reliable foreman, Frank Agretti. Since Daniel, an unsuccessful author, has turned to gambling, drinking and brutality, Emma has become a battered wife. To escape her troubles, Emma turns to another man, Charley, for much-needed affection. In an effort to get out of prison, Richard decides to testify against his co-conspirator, Michael Sharpe. Richard evades an attempt on his life meant to stop his testimony. Accidentally getting her finger stuck in a pool drain, Maggie drowns. Angela hires a private investigator to tail Pilar.

Charley keeps the pressure on Emma to sell to Sharpe, despite the fact that she is pregnant. After Charley tells Ian about Sydney's affair with Chris Agretti at the winery, the two brothers agree to kill their wives for deceiving them. Richard lets Lauren know how much she means to him. After Frank sees Sydney and Ian in a struggle, he tries to help, but when Ian gets the upper hand, Sydney saves Frank by killing Ian with a letter opener. Charley chases after Emma, but Emma shoots him in the chest.

Haunted by the memory of her husband's death, Lauren moves out of Richard's place and in with Genele. When Danny invites Sydney for a romantic night on his father's yacht, Sydney maneuvers to put Lance and Pilar on the boat together instead. When Sharpe uses sensitive information about Richard's business dealings, he makes $300 million and Richard loses $52 million. Richard wrongfully accuses Lauren of leaking the information. After showing up at Richard's door, Genele removes her clothes.

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.

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.

After Danny learns that Richard is his father, he goes to Sharpe to tell him it doesn't matter, but Sharpe throws him out of his office and tells him that they should go their separate ways. Because Danny has no job and nowhere to live, Lauren invites him to live with her and Richard, but Richard wants nothing to do with Danny. After witnessing this callous side of Richard, Lauren considers calling off their wedding. When Danny threatens suicide, however, Richard and Sharpe agree to help him, which reassures Lauren. With the wedding back on schedule, Angela must find another way to stop it.