Adam and Phyllis prepared to go to New York, separately, to see about business. Sabrina was still thinking about the proper way to tell her best friend, Victoria, that she was involved with her father. Gloria decided that giving back the mansion, to Jack, was a better idea than living alone and not having her family around her. Gloria threw Jeffrey out of the house, when she found him in a situation not to her liking, with an ex of his. Alistair was apparently taken with Gloria but Jill found herself wondering what Jeffrey was all about. Sabrina found the ideal spot for Victor's new contemporary art museum, the first floor of Nicholas' building, where Restless Style was located. Nicholas also learned from Victoria that his father held the mortgage on the building, not him. Sabrina told Victoria about her relationship with Victor, angering Victoria and telling Sabrina to stay out of her life from now on. Lily finally told her father that she was pregnant but the news brought problems to the budding romance between Neil and Karen. Lily, decided on her own to have the baby after giving it some serious thought, which made Cane happy. David returned from his "out of town trip" causing Nikki to wonder about the real reason for his going. Gloria asked Michael to drop his lawsuit against Jack, but Jack who overheard the conversation, couldn't quite believe his ears. Cane proposed marriage to Lily, but didn't receive an answer as she wanted time to think about it, knowing that the baby was the reason for the proposal.