Diane comes down to find Victor reading a news article online (that states the arbitration resumes today). He needs to know what people are saying. Who cares about that garbage? Diane shrugs it off. Easy for you to say my darling, Victor purrs. Diane explains her tossing and turning last night was due to Kyle spending his first night at Jack's. He'll be back soon, she's sure (Victor, not so much).

At G-worm, Jack raves about having Kyle full time. Phyllis understands him not wanting the kid around Victor and Diane playing house. But - um - Kyle doesn't like Phyllis. Guess they'll have to sneak around. Both apologize for yesterday (her showing Nick the video - him freaking out about it). And to avoid further arguments, Jack's gonna share his next plan.

At home, Adam and Sharon are reading the same online article as Victor. Seems the heir apparent has turned on Dad (which is fine by Adam). Never mind that - what did Jack and Phyllis find in Hawaii (and why aren't they sharing it? They have no right to). Sharon grumbles - Jack's priority is screwing Victor. On cue, Jack calls. On his way over to share the evidence, both Sharon and Adam are suspicious of his sudden change of heart.

Lily's on the phone with Neil - telling him that her pal Daniel spent the night. No need for Neil to come over - Love you - bye. Hanging up, Lily's nervous upon hearing crackling over the baby monitor. Cane?

At the Abbott home, Daniel stands by as Abby gives Vikki a present for her Goddaughter - a pre Christening gift (a blingy pacifier that Vikki loves). And as the sisters chat, Daniel strolls over to the bassinet to stare at Lucy. Leslie calls Abby with what seems like big news. Are you serious? Really?!

As Nick strolls into CL's, Mike ends a call of his own - and informs Nick that the Judge is making his decision today. There'll be no winner in this case - there's still time to drop it. No can do - what Victor's done is unforgivable (according to Nick - who doesn't agree that Victor loves his family). OK - Mike will talk as a friend. Abby's miserable - and you don't really wanna destroy your father (or the company). You'll regret it. See you at the arbitration, Nick's left to mull it over.

Cane? You trying to communicate with me? Lily's clearly freaked out. Ahhh - the static's caused by Humphrey unplugging the baby monitor. And now to replace the back up battery (don't want THIS happening again).

Worried that Kyle might decide to stay with Jack, Victor suggests Diane call to ask him to come back. Diane did a great job raising him - he's the best kid in the whole wide world. Why, thank you, Diane simpers.

Flat on her back, waving her little legs and fists about, Lucy seems to be staring at Daniel just as intently as he is her. Vikki sees the way he looks at Lucy - must be strange for him. No, Daniel's very happy for her and Billy. Hanging up with Leslie, Abby reports this could be their last day of arbitration. Giving Abby a good luck kiss, Daniel leaves (as Nick arrives to hear the big news Mike already told him). Abby wouldn't uncork the champagne just yet - can't underestimate Mike, or Dad.

At home, Sharon and Adam are stunned to hear that Jack has footage that places Victor on the volcano that night. So, he KNOWS Skye's death was an accident. What a piece of work Victor is, Adam seethes - letting Sharon hang out to dry. Jack defends not coming forward with the video - he needs to prove it's Victor (which hopefully the forensic photographer he hired can do). He's only telling them now because Phyllis showed Nick (who told Victor). Since Victor's denying all, it's all up to the photographer.

Jack doesn't much care that Sharon and 'Junior' think he used poor judgment. And yes, it could be why Nick joined the lawsuit. He's pissed about Victor's lies. Having said all he came to, Jack leaves - sorry it turned out this way. Not half as sorry as you're gonna be, Adam grumbles as Jack exits. Now alone, Sharon's pissed - her best chance at defending herself was sabotaged - by Phyllis! Marching out for air, Sharon snarls - I could kill her. Damn that woman. Hmmm. Adam's left alone to think.

Noticing Diane at G-worm, Phyllis immediately joins her table (to needle her about Jack - and Kyle). He called - and Diane's delighted that Kyle's transitioning so well. Now scram - so Diane can enjoy her breakfast. But first, Phyllis (who 'despises' Diane) wonders why she rolled over so easy (in allowing Kyle to move into Jack's).

Daniel drops by Lucy - to report Vikki catching his staring at Lucy (and her comments). No, she didn't notice him 'freaking out' - but he's scared someone will figure it out. What if Lucy grows up to look like him? What if they figure it out?

Vikki calms Abby down - don't wig out. Nick chimes in to relay Mike's comments to him (not to do something he'll regret). What does that mean!? Abby panics. Vikki remains confident - Dad's gonna lose.

In Victor's office, Mike's come to the same conclusion - the kids will win today. His long shot plan? Null and void the new trust funds - reinstate the old (more stringent) ones - the ones that gave him control over the funds. It was when he disinherited the kids - and gave control to Adam (before fleeing for Mexico). Victor balks at what that entails (claiming that he was 'nuts' when drafting the new trust funds). Saving the company calls for desperate measures, Mike insists.

At CL's, Jack leaves Phyllis a heads-up message (that his meeting with Sharon didn't go all that well. In fact she's likely sticking pins in a voodoo doll right now.

Phyllis isn't buyin' that Diane wants Jack and Kyle to be closer - nor is it due to her relationship with Victor (that she's been flaunting). Phyllis assumes Diane's after Victor's money. She never holds onto a man - and is just a seat warmer for Victor (who'll go back to Nikki). Does 'sweetie' have a back up plan? No - Victor is all Diane could ever want (and Phyllis should save her crap for RS).

Abby relays Victor's visit to her yesterday (which Nick assumes was a bid to get her to drop the suit). Of course Abby didn't accept his settlement offer. She then relays telling him how close she feels to her siblings now - and Victor's assumption that her invitation to be Godmother was a bribe. That was low, Vikki's indignant. Oh - and Diane walked in - they're shacking up. But when Victor said it was none of her business, Abby realized he'll never be the father she wants him to be (a statement Vikki and Nick agree with).

Back in Victor's office, Mike's suggestion is rejected - there MUST be another option. We only have a few hours, Mike feels they're out of options. Victor insists his lawyer find an option. That's what he pays him for.

Lily wonders if subconsciously Daniel HOPES someone will realize that he's Lucy's father. No - Daniel wants things to stay exactly as they are. It's best for him - and Lucy. Maybe he's just being paranoid. Lily assures that no one will figure it out - everyone thinks Daisy was still pregnant when the Abbott's adopted Lucy. Lily can relate to being 'jumpy' (being so 'whacked' that she thought static was Cane trying to contact her). We're quite the pair, they chuckle. Lesson of the day? Don't let fears get the best of us.

Vikki thinks that Victor will one day forgive Abby. Nick disagrees - Dad never got over him turning him in to the feds. He won't forgive us for forcing him to take his company public. Nick can live with that (but can his sisters?)

Now at RS, Phyllis is barking into her phone when Sharon arrives to yank it from her hand. Who's she trying to help anyway? Certainly not the one taking the rap for a murder she didn't commit.

Adam barges into Victor's office - man up - do right by Sharon, he places both hands on the desk to demand.

Shown to the front door, Daniel and Lily continue to bond over their shared secrets. Now alone, Lily hears familiar music over the baby monitor. Oh my God, she runs to the nursery.

Mike insists on buying his friend Diane a coffee. Seated back at her table, they chat about Victor's Valentine's Day announcement. Mike noticed she didn't look too enthusiastic. That's before Diane knew he was invested in this relationship (with Kyle too). Is she happy? Um - it's moving so fast. Ex - to employee - to his mistress (or stand in wife and family). Diane swears Mike to secrecy - then confesses she was involved with another man (who still has feelings for her). She can't stop wondering ......

Nick needed to know his father's a manipulative liar (as it effects Phyllis' daughter). MY kids are affected too! I'M the one on trial for murder! YOU don't care what happens to me (and broke the agreement). Too bad if Phyllis doesn't appreciate this scene at her work place - Sharon is just getting started (until Jack swoops in to restrain her that is).

When Adam rants n raves about Victor condemning an innocent victim; the mother of his grandchildren, Victor's confident there's not enough proof to convict Sharon. Stating his theory (and all Victor did to frame him), Adam does have ' proof'. And this is how it's gonna play out - go confess to the DA. Otherwise, Adam WILL. Victor has other ideas - Listen - THIS is how it's gonna play out ...

Music box in hand, Lily slumps onto the sofa to listen - then shut the lid. Open it again - then gasp. Who opened the music box? she wonders aloud.

Meanwhile, Daniel's on the patio, flashing back to cradling his newborn. Frowning, he dumps sugar into his coffee.

He's handsome - funny ... Diane raves about her mystery man (until Mike cuts her off to warn that it's dangerous). Be straight with Victor - or get out now. If Victor finds out he's being lead on, Diane will pay dearly.

Abby thinks the whole thing so sad. All three kids analyze Victor; who's still the abandoned orphan; him against the world. That's why he's able to shut off his humanity (to justify his actions). And that's why we filed the suit, Vikki reminds - we won't be controlled. The fallout will be epic. But we're hours away from victory, she reassures.

Jack understands Sharon's anger, but .... Sharon's not surprised that he's taking Phyllis' side. Victor's the enemy, Jack reminds. Phyllis declares the video useless unless the forensics photographer can identify Victor. Sharon better pray that a miracle saves her butt.

Adam WILL negotiate with Victor - IF he wants to save Sharon. Got your attention now? Seems so. Victor will save Sharon - if Adam does something for him; help save his empire.

Next: Sharon accuses - You didn't make a deal with the devil to get me out of these charges did you? Adam looks busted ... What is he doing here? Vikki's head swivels around in confusion - when Adam marches into the arbitration, tossing his jacket on the chair beside Victor ... Tucker questions Neil: When Sophia came, you could barely stand working with her - what changed?

My Thoughts: With the status of Daniel Goddard (Cane) still undisclosed, I sure hope the plan's not to turn his infrequent ghostly appearances into a whole storyline. Note to writers; there's a reason Passions was cancelled .... Nice that Jack LOVES having Kyle with him full time (now let's see how much time father actually spends with son) .... Oh yeah - Kyle's hatred for Phyllis will surely dissipate when he 'gets to know her better' .... NOW Sharon's so angry she could kill? .... Ah ha ha - help me save my empire, Victor requests of his devil spawn (looking very much like the Muppet's 'Beaker' as he makes the request) ... How stupid ARE Adam and Sharon? Call Leslie NOW - subpoena the video and check it out yourselves - or better yet, have YOUR lawyer take it a forensics photographer of HER choosing. Sharon's 'best chance' at defending herself - was evidence she learned about FIVE minutes ago? This video 'evidence' is going to be useless in court anyway - especially after being sent off to a forensic photographer randomly picked by Jack (as referred by Malcolm of all people). Questions regarding it's authenticity will ensure the prosecution has it declared inadmissible. Anyone who'd read a Grisham novel would know that enhancing the footage should be tried on copies, not the one and only original - copies that were made available to BOTH the defense and the DA's office. Now, the original video has been compromised. Thanks Jack .... Off course Diane would 'roll over' - I'm sure she rolled over from all fours to missionary, and back again many times - for father and son. So - yes - whatever caused Nick to go against his father IS huge (Diane's vagina) ...And if I have to hear her say one more time 'If I know my son' Of COURSE you know your son dumbass - he's your SON .... No - Jack and Phyllis don't have the 'right' to keep this evidence to themselves - but their obligation is to disclose potential evidence to the authorities, not the defendant and her live in lover .... Yeah - it didn't go quite the way you planned it Sharon. But, there wasn't exactly a line up of people willing to drop everything - and spend thousands to traipse off to Hawaii (looking for proof of your innocence). Jack shoulda handed her a tallied bill of his expenses ... .... Sharon's back IS against the wall - cause she's practicing for when she goes to prison (and I'm sure Adam has many other tidbits of advice he can pass on to make her incarceration easier. Like, oh I dunno - if cons run at you with syringes, run) ... Yes - the other babies will be soo jealous of Lucy's blingy pacifier - she'll get a lot of attention (from the paramedics trying to dislodge glitter from her throat!) .... I'll believe it when I see it, Adam says with a straight face (clearly forgetting that he can't see anything - on account of being legally blind).