Grace Turner was having a dilemma. She loved Sharon Newman's daughter, Cassie. Finally, Grace told Sharon she and Tony Viscardi had found the child she gave up for adoption years ago. Sharon was so excited her husband, Nick, thought she was pregnant. Sharon said no which pleased Nick because he wasn't ready to have their family grow. After an endless battle, and with the Bug's free legal help, Sharon got her precious little girl back and Nick agreed to adopt Cassie.

Danny and Phyllis Romalotti's divorce and custody hearing came to and end. Danny was the all around winner when a copy of Sasha Green's manuscript turned up. Danny was happy but needed someone to help raise little Danny, Jr. He asked Joani the nanny for help and she agreed but Danny really wanted the Bug.

Phyllis got to work planting seeds of doubts in the mind of the Bug's current husband, Paul Williams. Mary Williams didn't help the situation and Paul grew suspicious when the Bug told him she didn't want to have a baby. One day Danny scooped up the kid and went to Europe. The two haven't been seen since. Likewise, Phyllis departed Genoa City.

Still estranged, Dru and Neil Winters agreed to give their marriage another try. Dru even went so far as to look into invitro fertilization. But in the end, Dru and Neil parted ways.

Tricia Dennison and Ryan McNeil returned from a ski trip during which Ryan had given Tricia her first humping experience. Confused, Tricia confided in Jill Abbott and sister, Megan. Tricia became possessive of Ryan and continually pestered him about divorcing Nina Webster. Tricia soon got what she wanted when Ryan divorced Nina and married Tricia.

At the Newman ranch, Veronica Landers, working as Sarah the maid, wanted to tell Dr. Josh the truth. That she was his dead wife. Josh wanted Nikki to have his baby and Nikki's slave, Miguel was becoming attracted to Sarah. After killing Josh, Sarah pumped four bullets into Nikki. Later, Victor confronted Sarah at the stable where Sarah fell on a pitchfork and died.

Billy Abbott was in a boarding school and John Abbott wanted him home. Later, Billy would return all grown up.

Nina Webster started her writing career.

Cole Howard grew tired of Victoria and hot for Ashley Abbott. Cole and Victoria parted ways and Cole married Ashley but the wedding fizzled and Cole divorced Ashley and left town.

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On June 1, 1998, Jack Abbott told the deep in denial Diane Jenkins to accept the fact that Victor Newman had kicked her to the curb.

"The man is never coming back to you! The man dumped you! He treated you like dirt! You know what's worse? Watching you set yourself up for another fall with that bastard!" Abbott shouted as he walked out the door.

Although it was late at night, Jenkins zoomed to Newman's office.

"You said that you cared about me. I have to know where I stand in your life. I've got to know where I fit in or I swear, I'm going to lose my mind," she sniveled.

In other events this day: Neil Winters was shocked to hear that Victoria Newman was pregnant. "Are you sure?" he asked prompting Ms. Newman to bawl. She didn't know how she would handle being pregnant. Winters told her not to worry. He always stands by his women. "This child you're carrying. Let it be my child!" Winters fantasized.

At a nearby restaurant, Cole "Danger" Howard and the most boring woman in Genoa City were discussing his impending divorce from Ms. Newman. Elated, Ashley Abbott stuck her tongue between his lips before asking, "Are you serious?" Howard said yes and added, "I'm going to be a free man."

Out at the ranch, Sharon Newman, the baby and the orphan kid Cassie had returned to find Nick Newman waiting up. "Hi my little man," Nick sputtered to the baby as his wife went to put the child down. "I know you don't like me. I know you weren't expecting to have a step-daughter," Cassie snarled only to be told, "life is full of little surprises."

"Thanks for being so nice" Cassie said as she gave her future step-daddy a peck on the cheek which Mrs. Newman witnessed. A rush of hope swept over the woman. Could they really become "a family"?

Back in the big city, the Bug was sexed up. It's tiny milk jugs sagged under a blue negligee as she and detective Clueless called each other "soul mate" and sipped champagne. Clueless took his shirt off and pushed the Bug down onto the bed. The dirty deed done, they proclaimed their loyal devotion to each other.

At the apartment of Phyllis Summers, rock star Danny Romalotti was pleading. He wanted to take little Danny Jr. home with him but Summers said it was late and the kid was asleep. She could tell that things didn't go right with Romalotti's date with the Bug. Sure enough, Romalotti whined how the Bug had gone back to Clueless. Later, Summers told herself, "Maybe there's hope after all," that Romalotti would marry her.

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Nov 1998 - Alice Johnson learned that Sharon Collins was Cassie's birth mother. Snooping into Sharon's life, Alice discovered Sharon had married into a wealthy family. Nick returned home and tried apologizing but Sharon she wasn't forgiving. Angry, Nick fired Grace. Jack stepped in fearing Grace might file a sexual harassment suit against Newman Enterprises and arranged to have Grace transferred to another department.

Victor Newman asked Nick what was troubling him. Nick admitted that he was having marital troubles, but when Victor tried to help, Nick told him to stay out of it. Tony confronted Grace and got her to admit she had slept with Nick. Tony walked out on Grace. Grace consulted Michael Baldwin about a sexual harassment suit, but he said she didn't have a case.

Victor and Nikki learned that Sharon had separated from Nick because he was unfaithful with Grace. Nikki met with Grace and chastised her. Victor told his son to save his marriage.

Suffering from abdominal pains, Victoria Newman was hospitalized with a ruptured appendix. Her baby girl was also delivered by cesarean. Victoria learned her baby's health was in jeopardy. Later, Victoria confessed to Cole that she had deliberately gotten pregnant. While their baby struggled for her life, Victoria told Cole she wanted to name her Eve, after his mother. Victoria later learned from Cole their baby had died. Victoria and Cole held a memorial service for their baby. When Victoria was released from the hospital, Neil wanted her to come home with him. Instead, Victoria went to the ranch.

Brad Carlton met with Victor to discuss a job and Victor offered him a position that involved keeping an eye on Jack.

Katherine Sterling felt she could keep her house from falling into Jill's hands after hiring Michael Baldwin as her attorney. While Beatrice was giving a deposition, Baldwin learned that Silva took notes during her meeting with Jill. Baldwin demanded to see a copy of the notes.

Phyllis Summers and Victor formed a secret alliance. At Newman Enterprises, Phyllis met with Jack about a job. They ended up sharing a kiss and had sex. Phyllis ordered Michael to move out of her apartment. But when Victor found out he insisted she stay on his Michael's good side.

The Bug returned to Norfolk hoping to locate Carl. Worried that Chris would find Jim, Ruth arranged to go out dancing with him. Suspicious of Chris's behavior, Paul suspected she might be seeing Danny. When Chris went to see Ruth and Jim, Paul burst through the door and came face to face with Carl. But Carl did't remember Paul so Paul told Jim that he was his son.

Ryan McNeil's feelings were hurt when Phillip didn't invite him to his soccer team finals.

Malcolm Winters and Paul met with the Bug to find out if Callie Rogers could break her contract with Trey. When Malcolm asked Trey for a copy of Callie's contract, he refused.

Dec 1998 - Victor put Jack and Brad in charge of Newman Enterprises. Jack arranged to have Grace become Brad's assistant. Tony confronted Nick and they got into a fight. At the coffee house, Grace tried to discourage Megan from seeing Tony. Megan and Tony enjoyed a close dance together. They then shared a kiss. Meanwhile, when Victor learned of Brad's personal interest in Diane, he encouraged Brad to pursue it.

Chris received information that Alice was living with a child molester. Chris advised Sharon not to pack her bags and leave the ranch. Meanwhile, Grace's mother told Alice that Grace was living in Genoa City. Alice made contact with Grace by phone and questioned her about Sharon. When Grace tried to warn Nick, he demanded she leave his office. Alice showed up at Grace's doorstep and explained that her mother Millie had given her daughter Cassie up for adoption by mistake. Grace told Alice she couldn't help her. Before leaving, Alice left her phone number. Grace went to the coffeehouse where Tony refused to help her, not realizing that Cassie was involved.

Sharon and Cassie stopped by the coffeehouse. When Grace tried to wish Cassie a Merry Christmas, Sharon forbid her to talk to the child. Sharon also added that Cassie deserved a better role model than Grace. After Sharon and Cassie left, Grace wondered if she should call Alice. Instead, she turned to Michael for advice. He said the friends of Sharon who brought Cassie to Genoa City could face criminal charges for taking the child away from her adopted mother. Alice called Grace and asked if she knew Millie. After Alice hung up, the phone rang and she answered. It was a call from Cassie asking to speak to Millie. When Sharon overheard the call, she quickly disconnected the line. Alice wondered if it was Cassie calling. Meanwhile, Nick told Sharon he loved her and their family.

Tricia was unnerved when Ryan suggested they bring Phillip along with them on their trip to Aspen but Ryan later changed his mind. Tricia made plans to keep her marriage on track by having a baby.

Paul was angry that Chris didn't tell him that she had tracked down his dad, Carl. Later, Chris and Paul showed up at "Jim" and Ruth's doorstep as they were preparing to leave town. Paul showed Carl some mementos, but Carl still didn't remember anything about his past life. Mary accepted Charlie's marriage proposal. She broke the news to Paul and Chris on Christmas Eve. Ruth became alarmed when "Jim" said he wanted to visit Genoa City to see if it might stir up any old memories. He arrived just in time to attend the Christmas service. Standing in the back of the church, he saw Paul with Mary and had a flashback to an earlier Christmas service he had spent with Mary and their young children. Terrified,  Carl ran out of the church. Later,, "Jim" and Ruth saw Mary and Paul at a diner and Carl had another flashback.

Callie learned that Malcolm saw Trey behind her back. Trey offered Callie a chance to perform as Aretha Franklin's opening act. Callie realized that Trey had placed several conditions on the offer, including getting back together with him. Malcolm and Olivia learned about Callie's job offer from Gina. Olivia thought it was a great idea. Callie lied and told Malcolm that she had accept Trey's offer. She gave Malcolm a goodbye kiss.

After moving back to Nikki's ranch, Victoria reassured Neil her decision didn't have anything to do with her feelings for him. Cole and Victoria provided comfort for each other as they grieved the death of their daughter. Ashley informed Cole that she had to rush to Europe on business. On Christmas Eve, Cole and Victoria shared a kiss. Later, Neil urged Cole to surprise Ashley in Europe for New Year's Eve.

Michael arranged a visit for Katherine with the court so that she could pick up her jewelry. When Jill found, she confronted Katherine, which upset Jill's lawyer, John Silva. Jill had a quiet conversation with Beatrice before she was scheduled to testify. When the court called Beatrice to testify, she wasn't in the courtroom. Katherine testified. She told the court she had given fifty percent of the Chancellor estate to Phillip. Jill ran into Beatrice at the courthouse where Beatrice explained she was nervous about testifying, and added it might help calm her nerves if Jill provided her with more money. Jill told Beatrice she'd come through with the money after Beatrice gave her testimony. When Beatrice was on the stand she testified that she was present when Katherine gave Phillip fifty percent of the Chancellor estate. When Michael asked if Beatrice had been paid by Jill for her testimony, Beatrice answered no. During a recess, Michael confronted Beatrice alone and said he had proof that she had committed perjury on the witness stand. Michael urged Beatrice to tell the truth in court, or risk being jailed for perjury. When the trial resumed, Beatrice admitted she had received money from Jill in exchange for her testimony. Jill accused Beatrice of lying and Beatrice flashed a photo copy of the check she had received from Jill. After closing arguments, the judge ruled that Jill and Katherine were co-owners of the Chancellor estate.