Stuart's arrest divides the community and scandal is brewing over Michael and Lilian's love affair. Kate nurses Wolfie back to health but he is deeply depressed by the forthcoming hearing. Michael tries to reach some understanding with Wolfie. To avoid dismissal Lilian takes a job out of town and Max tries to hide the truth about Wolfie from Eva.

Michael stands by Stuart as he is found guilty and sentenced to five years imprisonment. Molly and Michael have problems to resolve with the lease while Michael organises opposition to the Authority after cattle die due to their negligence. Max excitedly reveals that a close friend is arriving from Germany.