As the Board of Directors gathers to vote on the Denver-Carrington/Colbyco merger, Alexis pointedly tells the group that a nay vote will be met with immediate dismissal. The approval of the motion sends Blake into a fury. Kirby is upset to find Jeff and Fallon laughing together; Krystle comforts her, and also tries to patch up relations between Steven and Blake. Jeff accuses Adam of falsifying reports regarding Denver-Carrington; Alexis warns Fallon of Mark's history as a gigolo. Alexis learns Congressman McVane has managed to block the merger; outraged, she spills her knowledge of his scandalous past to the press.

A scandalous newspaper headline implicates Congressman McVane with a young girl in Washington; he realizes Alexis orchestrated his downfall. Kirby finds she is pregnant; Adam is alarmed to learn that his former physician, Dr. Billings, lS soon due in Denver for a convention. Krystle and Alexis argue over Fallon, and the discussion quickly disintegrates into a brawl: The two fall into the lily pond flailing and punching. Blake approaches and pulls them apart, likening the women to 'common mud wrestlers.' Humiliated, Krystle packs her bags and checks into La Mirage. Alexis demands Joseph drain the pond and retrieve the diamond earring she lost in the scuffle, and threatens to tell Kirby the truth about her mother if he does not cooperate. A ruined McVane appears in Alexis' office after hours and threatens to kill her.

When Blake learns Steven's attorney Chris has moved in with his son, he vows to fight for custody of little Danny. Morgan Hess, Alexis' private investigator asks his employer for a large sum of money to payoff a gambling debt; when Alexis refuses, Hess leaves with a threat. Kirby realizes her baby was fathered by Adam. Fallon meets with Adam's former physician, Dr. Edwards, who tells her of Adam's temper and underlines his brilliance: He once won a case by proving a plant worker was poisoned and driven insane by chemical fumes. Realizing the connection to Jeff's illness, Fallon asks the hospital to investigate. Alexis tricks Krystle into meeting her at Steven's cabin, where she offers her $1 million to leave Blake. Outraged, Krystle rises to leave, but the door will not open--someone has bolted it shut from the outside, and smoke is pouring in from under the door........

Kirby angrily demands that Alexis divulge the real motive behind her father's murder attempt. In a fit of rage Kirby tries to strangle Alexis. Steven finds a social worker snooping around his apartment and orders her to leave. The incident later is brought up at the custody trial, and the woman describes Steven's behavior as a typical homosexual reaction. Steven's attorney and roommate Chris Deegan brings to the court's attention that Blake has previously been convicted of murdering a gay man and harbors a blind prejudice against homosexuals. Alexis testifies that Blake purchased the baby from Sammy Jo. When Blake loses his composure and lashes out at Alexis, the judge orders him to control himself and adjourns the hearing.

Alexis arrives home from the trial to find her apartment ransacked. Police Lt. Merrill speculates there may be a connection between the break-in and the recent attempts on her life. Fallon testifies on Steven's behalf. When she leaves for Montana, Alexis tells Adam that if her trip has anything to do with the poisoning incident, he's on his own. On the witness stand, Sammy Jo fabricates tales of Steven's sexual promiscuity. That night, Claudia barges into Sammy Jo's hotel room and demands she retract her courtroom statements. Claudia tells Steven she has devised a fool-proof method for him to retain custody of his son.

Following through on the plan to retain custody of Danny, Steven and Claudia fly to Reno and are married. When the judge receives the assurance they will jointly rear the child, the suit is dismissed. Attempting to win Krystle back, Blake offers her a public relations job at Denver-Carrington. Adam asks Alexis to sign three routine documents, but the second and third pages are positioned so only the signature line is exposed. When alone, Adam crumples the first page and carefully places the other two in his pocket. Fallon and Jeff investigate the poisoning incident in Montana. They are stunned to learn the name of the prosecuting attorney was Michael Torrance--the name Adam used before arriving in Denver.