After Julia Newman became pregnant, Victor began taping his wife’s conversations with her lover, Michael Scott. When Victor’s suspicion that Julia and Michael were lovers was confirmed, he trapped Michael in a bomb shelter in the basement of his ranch home. While Michael was being held prisoner, Victor had a monitor installed. Seeing Victor and Julia together in their home on the monitor added to Michael’s torture. Eventually, Julia discovered that Michael was being held hostage. She tried to free him. When Victor intervened, they had a struggle and Julia tumbled down a flight of stairs. She was rushed to the hospital, where she miscarried. Meanwhile, Victor discovered that he had actually fathered Julia’s baby. Soon after, Julia and Michael left town.
After jumping off a cruise ship, Katherine Chancellor ended up on an island, where she was rescued by Felipe. Soon after, she fell in love with Felipe. When Katherine became ill, Felipe arranged for her to be sent to a hospital. She wanted him to move back to Genoa City with her, but Felipe wasn’t interested and sent her a farewell letter. Katherine returned home, where she enjoyed taking revenge against her cheating husband, Derek, before finally ending their marriage.
Greg Foster divorced Nikki. During the divorce, Greg had fallen for April Stevenson. But Greg’s feelings for April turned hostile when she revealed that Paul Williams was the father of her daughter, Heather. When Heather became gravely ill, Greg convinced Paul to marry April and be a real father to Heather. Soon after, Heather recovered. Paul assisted April in trying to find her twin sister, who had been given up for adoption years ago. Meanwhile, Nikki took a job at a strip club, run by Cash, who was now dating Katherine Chancellor.
Leslie Prentiss reconciled with Lucas, but she had a difficult time making love with him. Lorie, who was worried about the reconciliation, had an affair with Lucas so that Leslie wouldn’t seek custody of her son Brooks. After tripping over one of Brooks’ toys, Leslie regained her memory and recalled that Lance was the father of her son. Leslie also sold her stock in Prentiss Industries to Victor Newman, who was looking to take control of the profitable company.
On a different front, Vanessa Prentiss learned that she was dying from a terminal illness. Vanessa utilized her last months to mastermind a vicious plot against Lorie. Meanwhile, Vanessa was disappointed when her son, Lucas, announced that he was leaving town because Leslie wasn’t in love with him.
Steve Williams resumed his job at The Chronicle. He also pressured Peggy into marrying him. But she ditched him at the altar. Soon after, both Steve and Peggy left Genoa City, but not together.
Jill fell in love with her boss, John Abbott, who was also attracted to her. They arranged a get-away trip to New Orleans, but at the last minute, John canceled the trip because he wasn’t ready to become involved with another woman. Soon after, a despondent Jill made love with John’s son, Jack. The next day, Jill’s roommate Eve, gave her a letter from John. In the letter, John said that he loved Jill and wanted to be with her. Unfortunately, the night before, John had accidentally stumbled upon Jill in Jack’s bedroom. When Jill discovered that John knew about her indiscretion, she quit her job at Jabot. But after John Abbott left town, Jack rehired her.
Patty Williams fell for Jack Abbott, against her parents’ wishes. But Patty also had a second guy who was interested in her, singer Danny Romalotti, who was closer to her age. Patty was devastated when a jealous Jill revealed that she and Jack had been secret lovers. Jack was so infuriated by Jill’s actions that he fired her from Jabot. When Danny asked Patty for a date, she graciously accepted, hoping that it would help her to forget Jack
After Chris gave birth to a baby girl, Jennifer, she told Snapper that they needed a bigger home. But Snapper was opposed to the idea. Soon after, Snapper’s former girlfriend, Sally McGuire returned to Genoa City with her and Snapper’s son, Chuckie, who was seriously ill. While Chuckie was hospitalized with a kidney problem, Sally realized that she was still attracted to Snapper.
Casey was harassed by a secret stalker, who eventually shifted his sights to Nikki. Meanwhile, Casey accepted a job in another town. Just in time, Nikki discovered that the stalker was her neighbor and friend, Edward. He admitted that he loved Nikki and had tried unsuccessfully to do away with all the men in her life, including Paul, Cash and Andy Richards, whom she had briefly dated. Edward also added that it was their destiny to be together for eternity. Edward was about to blow them both to smithereens with dynamite when Nikki was rescued by Paul.
At Douglas Austin’s urging, Victor paid a visit to The Bayou to watch Nikki perform. Victor was immediately intrigued by Nikki. He returned to watch the show several more times. He also encouraged Douglas to investigate the possibility of buying The Bayou.