Karen hears that the case against Frank and Roy has been dropped due to a technicality. Furious, she barges into the Federal Prosecutor's office, who happens to be Marion Patrick McKenzie. 'Mac' gives Karen info on the case, and kisses her. Karen fires Gary, and hires Wayne, unaware that he has a scrapbook about Sid's death. Val has been living at a motel, but decides to stay with Rusty and Cricket on their ranch. Gary, now living with Abby, goes there to try to win Val back. Rusty beats him up. Abby's furious that Gary went to see Val. Val returns home and kicks Gary out. Gary goes back to Abby. Abby has been sending JR every other chapter of Val's book.
Joe warns Mac that Karen is using the court transcripts to try and go after Frank and Roy herself. Karen asks Wayne to negotiate a parts deal, and he goes to Frank and Roy, who set him up with their front men Marshall and Angelo. J.R. has one of his companies buy Val's publishing company. J.R. also meets with Abby, who will only give him the rest of the book if he'll tell her about Jock's will. J.R. tells her that Gary's coming into millions, and it isn't dependent on Val. Laura's water breaks. Richard rushes her to the hospital, but the car goes off the road and Laura gives birth in the car. The baby isn't breathing, but Richard saves him by giving him mouth-to-mouth. They name their new son Daniel.
Gary really wants to get Val back, and even Lilimae tries to get them back together, but Val refuses to speak to him. Karen tells Mac that she suspects Wayne caused Sid's death and she wants to trap him. Wayne and Marshall exclude Angelo from their parts of the deal. Richard decides to open a restaurant, and Laura is supportive. Gary sees Ciji Dunne, a singer, rehearsing, and is entranced. He takes the Wards to see her and Kenny is really impressed and wants to do a demo with her. Ginger is jealous.
Karen goes through the KLMotors books and finds checks to West Century Auto, Frank and Roy's company. Karen invests money in Richard's restaurant, because Laura is concerned that Richard is spending too much money. Karen is being followed. Kenny's boss won't let him make a demo with Ciji, so Kenny and Gary decide to make a demo with her on their own. Val's publicist, Bess Riker sends a messenger, Chip Roberts to drop off photos at Val's. He charms Val and Lilimae, and tells him he's a publicist. Back at the office, Bess tells Chip that if he thinks he's so hot he can be Val's publicist. Val appears on The Mike Douglas Show.
It's opening night at Richard's restaurant "Daniel". Gary asks Val to go to Dallas with him for the reading of Jock's will. She says no. Abby hints around for Gary to ask her to Dallas, but he doesn't. When she finds out he asked Val to go, she is furious. Ginger is upset at all of the attention Kenny pays to Ciji while he ignores her career. Joe tells Mac that whatever Karen has planned, it's going down tonight. Karen tells Mac of her plan to catch Wayne buying illegal parts. At KLM, the parts deal is going down. Mac has an informer tell Angelo, who walks in on the deal and is going to kill Wayne and Marshall. Then Mac and the police burst in and let Angelo go. Wayne and Marshall know that Angelo will have them murdered, so they agree to sign confessions about killing Sid. Wayne tells Karen he didn't mean to kill him, they were just trying to scare Sid.
Gary goes to Dallas for the reading of Jock's will, and Abby flies in to surprise him. Val is at the same hotel on her book signing tour. Val and Abby are civil to each other, but Val's very upset when she sees Gary. Gary's money is left to him in trust, and he's very angry that even in death Jock doesn't trust him. J.R. goes to Val's book signing and tells her he hopes her book is a best-seller, because he owns the publishing company and will profit from it. Diana and Mac don't get along. Chip and Bess have an argument and she breaks up with him and fires him. Chip tells Lilimae that he quit over policy differences and lost his lease, so Lilimae invites him to live with her and Val. Chip hits on Diana.
Abby's mad when Gary and Kenny decide to go into business together to produce a record for Ciji, and then promises money to Richard. She tells Gary if they don't have a partnership she will leave him. Abby makes Richard sign a contract that she will be in control of Gary's investment in Daniel, and if he doesn't sign, she'll make sure he doesn't get any money. Val is upset that Lilimae invited Chip to live with them. Lilimae introduces Chip to Ciji, and they're attracted to one another. Diana gives Chip a car from KLMotors. Karen and Mac go camping for the weekend, but she refuses to sleep with him and they argue the whole time. Joe tells her that she's in love with Mac and that he's moving back to New York. Karen and Mac talk and realize they're both scared of getting into a relationship. They make love.
Abby and Gary move into a beach house. Abby wants Ciji to sing at Daniel. Richard says no, so Abby threatens him. Val tells Karen that Chip makes her uneasy. Chip tells Ciji that he's dating Diana as a way to make contacts and help Ciji's career, but that she means nothing to him. Diana's upset that Chip won't take her to Ciji's opening and takes her anger out on Mack. Chip and Ciji begin an affair and Ciji is a big hit at her opening at Daniel.
Abby invites a famous record producer, Jeff Munson, to hear Ciji sing. Kenny's worried that Jeff will take over, but Gary tells him not to worry. Jeff knows Val and asks her out in front of Gary, and he's jealous. Laura's upset that Richard took money from Abby and is lying to her again. Gary spends the day with Ciji, and Abby's jealous. Diana decides to apologize to Mack and goes to his apartment. She finds him with another women. Mack then tells Karen that it's his neighbor Patricia, and she means nothing to him. Karen's very upset, but Val tells her to give Mac another chance. Mac tells Karen that he loves her, but Karen says she doesn't love him.
Jeff Munson tells Abby he'd only work with Ciji if he produces her. Abby says not to worry - she won't let Kenny stand in their way. Ginger shows Kenny a song she wrote, and when Ciji sings it that night at Daniel, Ginger is furious. She yells at Ciji that it is HER song, and she will get Ciji for this. Diana collapses and needs a kidney transplant. Karen doesn't handle it well, and the boys ask Mac to come to the hospital to support her. Karen rejects him at first, but then lets him comfort her. Karen and the boys don't match Diana's blood type, and therefore can't donate their kidneys. Karen asks Abby to be tested.
Laura and Ciji become friends and spend time together. It's Ciji's 25th birthday and Chip calls and says he's hung up at work, so Laura gets her a cake. Kenny hears rumors that Jeff is taking over their record label, but Gary assures him it's not true. Abby refuses to donate her kidney at first, but then decides to after talking to Diana. Karen thanks her but Abby says she's doing it for Sid and Diana, NOT for her. Chip gives Diana the necklace he bought for Ciji's birthday and tells her he loves her. Surgery goes fine and both Diana and Abby are okay. Karen goes into Abby's room while she's sleeping and kisses her on the forehead.
Mack's father Pete comes to visit him. Pete says he wants to make up with Mac, but then tells him he's dying, and doesn't want to linger, so he wants Mac to promise to pull the plug. This makes Mac mad, and he tells Karen that Pete cheated on his mother and was physically abusive to him and his sister Megan. Later, Mac decides to give Pete a chance and they hug. Chip wants Ciji to sign a contract giving him 25% of her earnings. Karen throws a benefit party in the cul-de-sac. Chip has Ciji sing at the party. Diana, recuperating, watches the party out of her window, and sees Chip and Ciji kissing.
Abby sells Ciji's contract to Jeff Munson. Jeff wants Kenny to produce Ciji, but Abby will only sell if they cut Kenny out of the deal. She tells Kenny he's out, and he's very angry. Kenny and Gary get into a fight. Abby goes to Gary's lawyer, James Westmont, and wants him to protect her interests in case Gary doesn't marry her. Chip is offered a job with Thornwell and Associates if he can bring them Val's account. Chip steals 2 chapters of her current manuscript and gives it to them. Ciji tells Chip that she's pregnant, and Chip yells that this will ruin everything and manhandles her. Val has been putting off signing her divorce papers. Jeff takes her to New York for the weekend, and she sees a new, more down-to-earth side of him. Val finally signs the papers.
Kenny and Gary almost come to blows. Jeff offers Kenny a job, but he declines. Ginger tells Gary that it was Abby who cut Kenny out, not Jeff, and that Gary better wake up. Chip convinces Ciji to get an abortion, but after spending time with Laura's kids, she changes her mind. Val asks Chip if he stole 2 chapters from her book, but he denies it. Val helps Mac pick out an engagement ring for Karen. He proposes to Karen, who answers "probably". Karen's old boyfriend Teddy Becker is back in town, and Mac's really jealous. He and Karen break up, and Teddy wants to get back with her. Val tells Karen she's being foolish. Karen finally tells Mac she really loves him. He proposes again, and this time she says yes.
A tabloid prints the 2 chapter of Val's book. She's very upset because it was a diary of her breakup with Gary. She and Jeff blames Chip, who feigns innocence. Thornwall tells Chip it is a tactic to get Val to sign with them - they can promise her that he can prevent things like this from happening in the future. Gary is furious over the tabloid and barges into Val's. He and Jeff get in a fight and Mack breaks it up. Val overhears Chip telling Lilimae that Gary is cheating with Ciji (Chip is lying.).Gary tells Abby they need to talk, because they're hurting too many people. Abby promises to set aside time, but doesn't. Gary considers having a drink. Everything's going wrong with the details for Mac and Karen's wedding, so they sneak out of the rehearsal and go to Las Vegas. They get married at "The Bridal Veil Chapel". The place is so tacky that Karen giggles throughout the whole ceremony.
Mac moves into Karen's, and Eric has a hard time dealing with it. Gary finds out about Abby's contract with Richard and starts to drink. Diana tells Abby the rumors about Ciji and Gary at Ciji's recording session. A drunken Gary bursts into the session and yells at Abby that they're hurting people and ruining lives. Abby yells at Ciji that she knows about the affair and to stay away from Gary. Jeff tells Val that Thornwell leaked the story. Lilimae confronts Chip, who apologizes and cries, so Lilimae relents and lets him stay. Ciji cries on Laura's shoulder about everybody hating her. Richard is mad about how much time Laura spends with Ciji. Abby and Gary make up, and he says he doesn't want her hiding things from him. She says she was only trying to protect him. Abby then brings him to the lawyer, who has drawn up a contract making Abby an equal partner. Gary walks out, and later, he shows up at Ciji's, extremely drunk.
Gary wakes up at Ciji's and they talk. Abby then threatens her to stay away from Gary. Ciji is upset and asks Laura why everyone hates her and accuses her of things she hasn't done. Ciji finds an article Chip has that says he is wanted in connection for a beating, and his name is Tony Fenice. Chip threatens Ciji not to tell anyone, and she breaks up and fires him. Richard accuses Laura of having an affair with Ciji. Val blames herself for Gary's drinking, and goes to police station when he's arrested. Abby and Westmont are bailing him out, and Abby and Val argue. When Gary wakes up, he overhears Abby telling Westmont to insert a clause in her contract that if Gary's capacity is diminished due to his alcoholism, she will get full power of attorney over his money.
Laura tells Richard that she wants him to move out. Richard finds Ciji at their house, and grabs her by the hair and physically throws her out. Chip is packing and tells Diana he's moving to New York. Diana wants to go with him, but Karen says she will do anything in her power to stop her. Gary, drunk, calls Val and asks her to help him. Abby show's up at Ciji's looking for Gary, and threatens her. Then Chip comes by with flowers, and Ciji tells him if she doesn't stay out of her life, she'll tell everyone he is Tony Fenice. Next Val goes to Ciji's, looking for Gary. Ciji says it's Val's fault that Gary's drinking, because of the tabloid. They fight, Val pushes Ciji, and Ciji falls and hits her head on a table. Ciji yells at Val to get out. Jeff Munson throws a party at Daniel to launch Ciji's album, but Ciji doesn't show up, and no one can find her. Finally, Jeff asks Ginger to sing. Down at 'Colony Beach', Ciji's dead body washes ashore.
Ciji's body is found, and Gary is passed out on the beach about 200 feet away. Gary goes home, where Abby keeps questioning him about whether he did it, and Gary can't remember. When it comes out that Ciji was pregnant, Gary doesn't think the baby was his, but can't be sure. Chip tells Diana he's going to New York alone, and will send for her when he's settled. Laura's really upset and takes it out on Richard. An old girlfriend of Mac's, Janet Baines, is handling Ciji's case. Mac requests an autopsy, and they think Ciji was murdered. Janet questions all of the neighbors. Abby hires Mitchell Casey, a criminal lawyer. Mitch doesn't want Gary to go to the police, but Gary does, and tells them that he initially lied to them, and that he woke up on the beach near Ciji. Gary is charged with Ciji's murder.
Richard is really concerned about Laura. He opens up to her about his brother's death. Richard and Laura go to pack up Ciji's apartment. Ciji's mother comes by and say Ciji was just a tramp with no morals. Richard defends Ciji's character. Chip tells Diana he's not going to New York, because he needs to support Val. Val and Jeff Munson break up. Gary is going through withdrawal in jail. His bail is set at $5 million, but Abby tells Mitch not to bail Gary out, on the pretext of letting him get sober in jail. Karen tells Val that Ciji was killed by a blow to the head. Val tells them about her fight with Ciji, and that she thinks Gary moved Ciji to protect her. They don't think Val killed Ciji, but tell her to get a lawyer. Instead, Val goes to the police station and tells Janet that she killed Ciji.
Val is booked and questioned. Abby goes to jail and has Gary sign over power of atty. to her. When she finds out Val confessed, Abby laughs and says, "That's so Val." Abby wants Mitch to get Val's confession thrown out. Mitch tells Abby she'd better determine what is more important - keeping Val and Gary apart, or getting Gary out of Jail. Police bring Val to Ciji's to recreate the fight. Other police show up with Gary. Gary's really upset, and says Val has nothing to do with it. Police have to restrain them. Lilimae tells Chip it was his leaking Val's story that started this whole mess, and kicks him out. Chip tries to charm Lilimae, but she's no longer buying it. Police release Val. Richard has decided to leave Laura, but doesn't tell her. He liquidates his assets and takes care of unfinished business, packs and secretly leaves.
When Laura realizes that Richard is really gone, she tells the police, and everyone else that Richard killed Ciji. Jeff Munson offers Kenny a job and Ginger a contract in Nashville, so the Wards decide to move. Diana and Chip decide to go to New York after all. Karen tells her about Chip and Ciji's affair in an attempt to get her to stay. Gary's preliminary hearing is coming up, but Gary's spirit is broken and he won't cooperate. Mitch thinks if Gary would work with them he could get the charges dropped. Abby wants Mitch to request Gary must go to a sanitarium as a condition of release. Mitch says no, so Abby fires him and asks Westmont to represent Gary. Val visits Gary, and she tells him to shape up because while he's playing martyr in jail, the real killer is on the loose. She also tells him if he respected Ciji, he would do all he could to find the real murderer. Roland Mackey, a private investigator, tells Lilimae he is looking for Tony Fenice, and shows her a flyer with Chip's pi