Richard rejects Jacqueline's explanation of why she gave him up for adoption. Despite being cleared of charges for Carlo Agretti's murder, Cole is continually harassed by the police and the community. By making an insincere appeal to their brotherly bond, Richard asks Chase to vote against Angela's take-over bid of The New Globe's board. In turn, Chase makes Richard give up construction of his winery, in exchange for his votes. Lance and his date Brenda attend Angela's annual Founder's Day Party at which Angela later becomes furious when she catches them in bed together. Richard and Melissa not only confess their attraction to each other, but Richard also announces to the entire party that he finally has found his mother, Jacqueline. Angela then publicly denounces Jacqueline for ruining her marriage with Douglas.

After their baby's accident, Melissa and Lance agree to a truce, and Lance and Angela are soon thrilled when Melissa announces she's pregnant. Carrying out Angela's plan, Dr. Lantry informs Maggie and Michael that the bullet in Chase's spine has caused an infection, and that he may have to operate. Later, Lantry discreetly injects drugs into Chase's I.V. During this, Richard becomes guilt-ridden when he learns from Philip that Jacqueline was dying of cancer and stepped in front of Richard to spare her son from the gunfire. Richard and Melissa then plan to gain Julia's trust to manipultate her to avenge the deaths of their parents. Meanwhile, Maggie begs Michael to face his fears and take over Chase's case. That night, Dr. Lantry triumphantly announces to Angela that Chase has a raging fever and could die whenever she wants. Angela is horrified, but Lantry coolly informs her that it's too late and reminds her she's an accomplice to murder.

Julia enters prison where she meets up with a tough matron who has a personal vendetta against the Channings, while Angela works to get her sentence commuted. After making love, Melissa offers the Agretti harvest to Richard, which he eagerly accepts in order to keep it from Angela. In Jacqueline's will, she has left fifty million dollars to be split between Chase and his brother, but, only if after one year, Chase believes Richard to be trustworthy. This reveals the motive for Richard's brotherly actions. Jacqueline also leaves Angela a hotel suite key with instructions that Philip must accompany her there. Jacqueline has the last laugh when Angela finds an unmade bed with a note from Jacqueline stating that she and Philip made love at that very spot.

Julia breaks down to beg Angela for protection against the ruthless inmates and prison matron who are out to kill her. Angela pays the matron off to make things easier on Julia. Maggie uncovers evidence that Dr. Lantry's paychecks are supplemented by a mysterious and handsome additional income. Dr. Lantry is feeling the heat from Chase and Michael's investigation into his competency and ethics as a doctor. Afraid of being implicated by Lantry, Angela threatens Dr. Hooks into dropping any inquiries. Maggie's sister, Terry Hartford, discovers that Maggie has become wealthy and heads for Falcon Crest.

Angela desperately protects herself when she discovers that Chase and Michael's investigation into Dr. Lantry's underhanded past points to her. After Angela reveals to Lance that Melissa and Richard Channing are having an affair, Lance, boiling with anger, sets out to find them. Melissa covers by telling Lance that she's trying to maintain Richard as an ally, while Richard has his eyes set on Pamela. Linda's father refuses to acknowledge Cole as part of his family, while the newlyweds start a custody battle for baby Joseph with Melissa and Lance. Maggie's sister Terry seeks her fortune in Tuscany Valley by manipulating her way into the Gioberti's home.

As Dr. Lantry nears death, Chase realizes that he may lose his only opportunity to see Angela behind bars. Lance boldly threatens Angela and Melissa with blackmail, and at the same time, Angela works with Philip to admit Julia into a mental institution. Terry slithers her way into Michael's heart, while Angela blackmails her for devotion. Vince Caproni, bitter about Linda's marriage to Cole, tells Linda that Angela's cruelty to migrant workers caused Linda's mother's death. Angela forces Terry to spy on the Giobertis, or else Angela will reveal Terry's seedy past. Chase discovers a clause in his grandfather's will that gives him the legal right to oust Angela from Falcon Crest.

Chase fights a vicious public battle against Richard Channing, who is trying to build a racetrack that could destroy the wine industry, however, the final decision rests with the valley residents who are about to vote after the men's muckraking campaigns. Angela vows that she will not allow Chase to run Falcon Crest without her and thwarts his efforts to obtain the accounting records. Vince Caproni becomes seriously ill after Lance threatens him over Joseph's paternity suit. Angela makes a fiery attack on her nephew to strip him of his Falcon Crest powers. Meanwhile, Terry moves in with Michael, despite the Giobertis' warning that she is treacherous.

Richard has won the election to build his racetrack while Chase is madly driven to stop him, which results in an explosive disaster. In the mental institution, Julia becomes hysterical when Richard malevolently tells her Melissa's baby is his, thus pushing her into a catatonic state. Angela promises Lance that they will be kicked out of Falcon Crest if they lose Joseph's custody suit to Cole. However, when Melissa is grilled on Lance's affair with Terry while giving her deposition to Cole's attorney, she explodes and admits that their marriage is a farce. Angela attempts to stop Chase's plans to market a line of champagne by buying up the grape harvest he needs.

Melissa loses control over her wicked power game when Philip intervenes and forces her to sell the Agretti harvest to him. Richard is nearly run down by a hit man as the cartel becomes even more determined to take over his racetrack. When Maggie interviews Sister Jeanette, an old acquaintance of Chase's mother, she overhears the startling news that Jacqueline had an affair with the head of the Nazi Gestapo in Paris, Johann Riebmann. When Cole returns home to find Melissa waiting for him seductively posed in his bed, he throws her out, but not before Linda enters, who witnesses the ugly scene.

Melissa and Lance resort to blackmail when Joseph's custody case goes to court. After enticing Cole into assaulting him in front of a witness, Lance shows up in court badly bruised claiming that Cole had beaten him. After hearing the corroborating story of the blackmailed witness, the judge dismisses Cole and Linda's suit. At the Gioberti's house, Maggie and Chase realize that Jacqueline's relationship with Johann Riebmann and Henri Denault made her a war criminal. Maggie decides not to submit her article to The New Globe, but Emma surprisingly turns out to be just as conniving as Angela when she has the story printed on the front page behind Maggie and Richard's backs. Richard fears for his life when Spheeris calls to convey the cartel's displeasure about the story.

At first light, Melissa and Cole wait at the rescue base as the helicopters arrive with the survivors of the crashed plane. Angela disembarks, relaying the news that Philip Erikson is dead. The co-pilot and Michael Ranson were also killed in the crash. Richard insists that the cartel was responsible for the crash, while Chase maintains it was sabotage. Angela blames Chase and swears she will make him pay. At the hospital, Angela comforts Emma, and Cole watches over Linda, who is in critical condition. They talk of Joseph and their future together. As Linda professes her love to Cole, she dies in his arms. Terry, although distraught, realizes that she has received a sizable inheritance upon Michael Ranson's death. As members of the cartel meet in Buenos Aires, Johann, disappointed that the crash was not a total success, reveals that their ultimate goal is to reclaim a valuable Third Reich treasure, which lies buried in Falcon Crest property.