Actually Paul Rauch had nothing to do with Louise Sorel dismissal from Santa Barbara - Rauch & Sorel were enduring a long-distance relationship while Sorel was on SB (the first time) When the role of Judith Sanders came up on OLTL - Sorel took it so she and Rauch could be together in the same city. I don't know when they broke up - but after one-year Sorel left OLTL and eventually went back to SB
During her second-time around on SB the Dobsons returned to write the show and created a bizarre storyline where Lousie Sorel character became obsessed and sexually attracted to her sister's rapist! Sorel did not like that story at all and complained openly about it. But things came to head with the Dobsons when Sorel heard that Paul Rauch was named Executive Producer. Sorel went to see Jerome Dobson to voice her concerns (her ex-lover being the boss), and that meeting dissolved into a shouting match.
Sorel said she felt physically threatened by Jerome during the meeting. Jerome said Louise was being overly dramatic describing it that way. Nonetheless it was the Dobsons that let Louise go - while the Dobson's had many backstage squabbles with Louise - this meeting about Rauch was the final straw. And Paul Rauch hadn't even arrived in the building when this all went down!