Lily sets up arrangements for Jade to get off on bail. Margo informs her that Luke is still being held accountable for obstruction of justice charges, but she's thinking the charges will be dropped due to the state's lack of funds to be able to prosecute both cases. In her cell, Jade promises Luke that it's not his fault that this happened, but adds that she would have liked to known that he was covering for her.
Craig goes by Lyla's with champagne, ready to celebrate Lyla's positive test results. Instead, Lyla comes in with the bad news from Michael, but tries to sugar coat her diagnosis for an emotional Katie. In private, Lyla tells Craig that she has worries about Katie living without her. He changes the subject and informs his mother that he's hired Carrie as his assistant. Lyla chuckles that he doesn't even need one, but it doesn't surprise her. It's obvious Craig's just trying to get to Paul.
Returning in a rage, Rosanna slams down her purse and muses to Paul that she wishes Craig Montgomery was just a bad dream. In an instant, the whole town would wake up and realize that he was just a figment of their mind, agitating and provoking them in a nightmare. She tells Paul about her run in with Craig at Metro, and Paul calls Tom to see what they can do. Later, Barbara arrives and sadly notes that Will's custody hearing is next week. She's surprised by Paul's adamance in not going, because it will be a precursor to the battle they're about to fight with Craig.
While Lyla stays home and gets some rest, Craig humors Katie by agreeing to by her something. In the process, the two run into Michael. Katie, still hurt over the embarassing lecture he last have her about faking her pregnancy, introduces the two very briefly before excusing herself. Craig takes kindly to the efforts Michael is taking to save his mother, but furiously forbids his late stepfather's brother from going anywhere near his mother during personal hours.