Michael offers Jill a job as a nurse at the hospital. Following a quarrel, Carolyn and Jeff grow closer. Joe does not want Norman and Rita raising his daughter. Rodney is assigned to a new therapist, with whom he does not get along.
Mike makes clear to Tom that Jill lost her baby because of him. Shortly after, Tom announces his plans on divorcing Susan. Meanwhile, Norman fears that Betty will turn to Steven for comfort again. Carolyn finds out that her father is dating a young woman, Donna.
When Betty finds out that Norman is suspicious of her meetings with Steven, she gets mad at him for not trusting her. Tom lands a job as a fisherman. Marsha admits that she knew about Donna even before the divorce, and Carolyn thinks that her mother is the cause of the affair. Upon finding out that Tom has filed for divorce, Susan swears on claiming that he had an affair with Jill. Judge Chester reveals that the withdrawal of Jill's custody of Kelly had nothing to do with running out on the Winters.
Despite other claims, Rodney convinces himself that Betty does not want to be with him anymore. Carolyn confronts her father with his affair with Donna, and he is surprised that she is blaming her mother for it. Joe provokes a fight with Tom at the wharf.
Susan threatens to ruin Jill's life if Tom does not take her back. Joe refuses to admit that he still has feelings for Jill. Marsha makes clear to Carolyn that Fred is the cause for her divorce. Betty gets a job at the motorcycle shop. Dr. Miles wants Rodney to find the will to learn to walk again.
Joe realizes how bad his relationship with his daughter is. Steven makes an anonymous donation for Rodney's recovery costs. Due to the conflicts with her daughter, Marsha, feeling trapped, tries to break off her relationship with Michael.
Dr. Rossi is worried that Rodney is now driving himself to exhaustion. Tom refuses to continue his duties as a reverend. Harry's wife Alma suspects that their son does not want to return home. Marsha catches Carolyn and Jeff being intimate, which leads to a lecture about sex.
Harry and Alma's son Lew returns from New York. Jill fears that she has nothing to offer Kelly. Jeff, who believes that she set up their romantic night to get back at her mother, is still mad at Carolyn.
Susan changes the adultery charges to mental cruelty, and kisses Steven afterward. Carolyn interrogates Michael on his intentions with Marsha. Betty is upset to find out that Rodney went outside for the first time since his accident without her. Carolyn becomes jealous of Jeff's interest in singer Nancy.
As Joe is about to leave town, Jill comes in to reconcile with him. Michael feels that he has failed as a brother. Harry finds out that Lew has been cutting class. Rod becomes worried when he sees Betty talking with Steven in the hospital.
Joe and Jill are married and they regain custody of Kelly. Afterwards, they decide to leave town. Lew gets frequent calls from a woman in New York. Jeff tries unsuccessfully to make Carolyn jealous. With Jill gone, Susan reaches out for Tom.
Michael is upset that Rod has quit therapy, and thinks it has something to do with Betty and Steven. Marsha gives Carolyn a hard time over having forgotten a meeting with her. After cutting his hand at work, Tom is taken to the hospital.
When Alma confronts Lew with his strange behavior, he admits that he was moved by the horrible way black people are treated in New York. Steven tries to assure Rod with a hard approach that he is not involved with Betty, but tells him that he will if Rod does not continue his therapy. Afterwards, Rod refuses to see Betty.
Betty goes to Tom for advice on her marriage. Steven admits to Susan that he still loves Betty, and then kisses her. They are interrupted by a phone call from Hannah, who tells Steven that Martin Peyton has died. After a confrontation with Tom, Rod continues his therapy.
The townspeople are informed by Martin Peyton's death. Steven immediately sets his mind on the will. Betty is given a hard time over inheriting his money. Harry fears that Lew will throw away his future career in medicine. Michael sees Carolyn sneaking into Jeff's place.
Marsha fears that Caroyln is having sex with Jeff and is upset that Michael advises her not to interfere. Steven and Susan continue their affair. Lew discusses his racial identity struggle with Michael. Carolyn admits to her mother that she's still seeing Jeff, but that she is not sleeping with him.
Betty urges Rodney not to let Steven harm their marriage anymore. Lew withdraws from a school project. Carolyn is afraid to tell Marsha how serious her relationship with Jeff is, until Jeff upsets her. While Rod starts to regain feeling in his foot, Betty enjoys the heritage from Peyton.
Betty shows her newly acquired power by arranging Peyton's funeral, which enrages Hannah. Fred talks to Carolyn about her relationship with Jeff. Harry gets mad at Lew for his constant racial remarks. Susan wants to conspire with Steven to hurt Betty.
After interrogating him on his relationship with Carolyn, Fred orders Jeff to stay away from his daughter. Norman is mad that Betty took Peyton's portrait of her and confronts Steven with it. Fred blames Marsha for Carolyn's rebellious behavior, and demands custody.
Lew poses as his father to make a phone call to New York. Worried about losing custody, Marsha turns to Mike for advice. He, in turn, proposes to her. Jeff offers Carolyn for both to date other people. Norman admits to Rita that he thinks Betty is wrong for Rod.
Marsha tries to win over Carolyn's love. Harry is worried about the long distance call on his name. Following their fight over Betty, Rita leaves the apartment to stay at Ada's. Carolyn tells her father that she wants to live with him, until she finds him with Donna.
Carolyn returns from Boston and stays at her friend Pat. Rod prepares to leave the hospital. Norman continues to bicker with Betty over her portrait. Betty shows interest in buying the Peyton mansion from Steven.
Rod returns home. Rita refuses to go back to Norman until he agrees not to interfere with Betty and Rod. Michael convinces Marsha to not let Carolyn get in the way of her feelings. She listens and accepts his marriage proposal.
Michael and Marsha visit the Miles family for dinner. Susan tells Betty that she intends to live in the Peyton mansion after she marries Steven. Lew's girlfriend Joanne fears that he cheated on her in New York.
Harry finds out that Lew is making phone calls to a New York girl, but Lew refuses to speak about it. Meanwhile, Norman agrees to let Betty and Rod alone. Jeff becomes jealous when he sees Carolyn dancing with Dennis. Sgt. Walker is upset with how Lew treats Joanne.
Betty offers a high prize to buy the Peyton mansion, but Steven believes she is only interested in it to get in his way. Fred apologizes to Marsha for his past behavior and suggests that he wants to save their marriage.
Steven orders Susan to tell Rodney that Betty has been seeing him. Norman and Rita plot to find a man for Maggie. Marsha persuades Michael to elope. Vickie, Lew's friend from New York, arrives in town, announces her pregnancy, and tries to blackmail him into marrying her.
Steven has accepted Betty's offer. Vickie forces her way in Lew's life through threatening to lie about him to the police. Alma is surprised when Lew tells her that he will marry Vickie. Betty finds out that she has not inherited Peyton's estate and blames Steven.
During a fight with Betty, Rodney suffers a relapse and can't move anymore. Rita gives Maggie a make-over. Harry feels that Lew is throwing his life away by marrying Vickie and thinks that he doesn't love her. Norman blames Betty for Rod's condition.
It is revealed that Peyton's latest will demands that all money was sent to a foundation. Betty is enraged and blames Steven. Fred asks for Carolyn's help to win back Marsha's affection. Eli and Maggie's blind date goes wrong. Harry offers Vickie money to leave town.
After hearing about Rod's doubts, Betty turns to Tom for comfort. Rita pursues Norman to not interfere with Rod's problems. Mike invites Marsha to go on vacation with him to the Bahamas. Joanne is upset when she finds out about Vickie.
Following a confrontation with Norman about Betty, Rodney requests a separation from his wife. Harry consults police information about Lew from Sgt. Walker. Eli is able to break through Maggie's hostile attitude.
While Betty packs to leave the house, Rodney's ability to move returns. Alma wants Vickie to give up her baby for adoption. Steven informs Betty about news on Peyton's will. Lew is worried when Harry suddenly leaves for New York.
Lew tries to find out what went on between Harry and Sgt. Walker's conversation. Tom reminds Maggie of her late husband. Jeff is mad at Carolyn for meeting with other men. Fred feels that Carolyn is choosing Mike over him.
Betty tells Rodney that she can't live without him. Lew assures Vickie that he is going to come clean with his father as soon as he returns from New York. Jeff claims to Fred that Carolyn is seeing Lew. Rod wants to leave town for college.
Betty fears that Rodney will realize that he can live without her. Joanne is mad at Lew over Vickie. Marsha worries about how the town would react at a mixed relationship between two teens. Carolyn forces Jeff to tell Fred that he lied.
Betty changes her mind about going after Peyton's estate. Rod is determined to attend college without Betty. Maggie fears that she hurt Eli's feelings when she rejected him for ice fishing. Lew wants to stop hanging out with Carolyn due to their racial diversity.
Carolyn is upset that her father believes Jeff's lies about Lew. Lew confronts Jeff with his lies. Rodney prepares to leave for Boston, but assures Betty that there is always room for her, believing that they could have a future together.
Steven is surprised that Betty has gone with Rodney. Maggie discusses her ex-husband with Eli. Fred tells Dr. Miles that he does not want Carolyn and Lew to be involved with each other. Harry does not want to co-operate, which leads to a racial discussion.
When one of his patients suddenly opposes his treatment, Dr. Miles suspects that Fred has got something to do with it. Steven introduces Betty to Peyton's former nurse, miss Ivers. She reveals that Peyton had several wills.
After a public fight with Fred, Michael reveals that he will marry Marsha. Eli proposes to Maggie. Carolyn apologizes to her mother for not having trusted her in the past. Jennifers requests Betty's help to assure that Hannah won't inherit Peyton's money, though Betty is unaware that Jennifer is conspiring with Hannah.
While preparing to elope with Mike, Marsha is almost raped by Fred. Vickie apologizes to Lew for blackmailing him and grows closer to him. Steven is appalled to find out that Hannah continues to try and destroy Betty.
Marsha finds Michael with Fred, who is passed out. Eli decides that he will not accept Maggie's rejection. Michael is worried that he can't revive Fred. Dr. Miles determines a severe injury in Fred's skull.