In one day successful city lawyer, Laura Gibson's world falls apart. Laura grabs at a position as magistrate in a small coastal town and with two bewildered kids in tow sets off to change their lives forever.

Laura's sister, Trudi, visits Pearl Bay to heal the rift caused by her affair with Jack. Her attention is diverted to Dan who may well fall for her charm as every other male in town appears to have.

Conflicts are overflowing in the town. The courthouse is being closed, Meredith doesn't know what to do, everyone wants to know about Laura and Max and the list goes on.

Without warning, the town knows everything. In a revelating meeting, the town's secrets are all brought out. Heather and Meredith tell all and Trudi reveals her baby isn't Jack's. Meredith begins a seige at the courthouse, where the town's residents inside say a gunwomen is holding them hostage. Laura stays in her office thinking it is real while Karen, Angus, Max and a small group of our favourite's sit in the courtroom enjoying a sing-a-long. When the demands are met, the only problem is to get away with it.

Karen decides to leave Pearl Bay and travel, much to Angus' dismay. Phrani and Kevin become closer and Bob and Bucket blow up the bridge. The town waits for the aftermath, not sure what it will mean

Bob is distraught after the council has been fired. Worried that he will be involved, Bob must track down the Port Deakin mayor. Karen returns from her travels to split up with Angus and find a new job. Angus takes some time off from his role as Court Clerk. Max must fight to keep his boatshed from being destroyed.

Griff is being kicked out of his home and moves into the Jelly's house. Laura tries to help him using a law of Adverse Posession. As Laura continues to see Warwick, the town grows to like him and wonder what Max will do. Trudi is back in the town and Rupert is fond of her child. However, Laura is not impressed and still will have nothing to do with her.Kevin and Phrani continue to work on their relationship after moving in does nothing

While Laura's on a one way track to the altar, Maxs announces he has accepted a lucrative job with an international newspaper and will be leaving Pearl Bay - and Laura - behind. Of all things, a trivia night question causes Max to reassess his life. Max is reminded of his likeness to the mariner in Colerdige's 'The Rime of the Ancient Mariner', who shot an albatross, his potential saviour. In other words, Max realises he should stop making a habit of sabotaging his own happiness.

Meanwhile, Bob launches his campaign with Morton at the reigns. Mr Jelly receives female attention from his forward image consultant, Astrid Moore, prompting Bob to warn Heather she'll let a tiger out to play if she doesn't take him back. Heather knows Bob couldn't cheat on him no more than she could on him. Her theory is proved when a terrified Bob bails out a restaurant toilet window to escape Astrid's advances.

Trudi finds herself in court...as Vietnamese interpreter. As the case unravels, the defendant is