Craig taunted Paul in the hospital. Craig asked him why he broke up with Meg . Craig then asked why he didn't confess and that he knew what Paul had done. Paul wanted to know what Craig was going to do about it. Craig said he'd do nothing, that watching Paul lose Meg was enough. Meg spoke to a nurse nearby and Craig called her over. Craig told her he eavesdropped and heard their conversation earlier. Meg was not surprised and asked what he was going to do with the information. She reminded him there was no proof. Craig left. Paul tried to convince Meg to come back to him. Meg said his hatred for Craig was stronger than his love for her and she would have no part of it.
Lucy, court order in hand, went to Barbara's suite to pick up Johnny. Barbara resisted. Lucy told her she would call the police and then Barbara would lose any chance of getting Johnny . Barbara gave in and Craig's lawyer went to the bedroom to get the child. With the lawyer gone, Lucy told Barbara she was playing along with her dad's wishes but had Johnny's welfare at heart. She told Barbra she needed to follow her lead. Craig then came to the door. The lawyer brought Johnny out and Barbara did play along in front of Craig. The three exited with the child, while a distraught Barbara crumpled up the court order.
Sage and Carly were at home getting ready for a friend to come over to pick Sage up and work on her science project. Carly took off her necklace and it fell on the couch. Carly then went into the kitchen. Sage pulled out her "magic crystal" (real necklace) and grabbed the one Carly just left on the couch. Simon called and Carly told him she'd meet him at Java. She then busied about getting things ready for Sage.
At the Lakeview Katie tried to convince Henry to break into Carly's to steal the necklace. Henry wondered what was in it for him. Katie told him there was a reward. She and Henry headed over to Mill Town. They hid in the bushes in front of Carly's.
Sage's friend and her mother come over to pick Sage up, so they can work on their project. Sage grabbed one necklace and put the other under the couch cushion. Sage went with her friend and Carly locked up and went off to meet Simon. At Java Simon apologized for making fun of Jack and they both agreed a life of crime was not for them. When Simon heard Carly's house was empty, he thought of something else they could do...
Henry and Katie broke in the empty house. Inside they looked in the obvious places and didn't find the necklace. Henry ended up on the couch in frustration. Katie sat beside him and felt the necklace under her. They reveled in their luck, as Simon and Carly came to the front door.
Over at the Oakdale Police Department Mike asked Jack what the status of the investigation was. Jack told him he had it under control. Mike told him Carly was the reason he did not dig harder. Jack said no proof existed. Tempers flared and Mike left. Mike then found Vienna out shopping. Mike asked her to call the prince since Jack was in no hurry to investigate. Vienna did and said the prince was not too happy, and that now they would get Simon.
Will gives Iris a large check to buy her cooperation - and to stay away from Gwen. Iris figures out that Will has access to his trust fund and she sees dollar signs. She claims she loves Gwen and doesn't think she can keep away from Gwen. Will snatches the check out of Iris' hands threatening to get a retraining order against her. Iris back peddles, taking the check back for Gwen's sake, but makes sure her sister, Candice, can still see her. Iris sees this check as a "down payment".
Jade comes into the studio upsetting Gwen again. Adam advises Gwen he's made a deal with an artist to do the cover of her CD, but they have to leave for LA in an hour. Adam tells Jade they have to find another place to be alone together - that he can't risk losing Gwen. Will comes in and Adam tells him about the trip. Will can not go on the trip because of an interview for school. Jade is excited about going with them, but Adam tells her she can't go.
Gwen comes across Iris sitting on a bench, crying telling her something horrible as happened.
Barbara meets with Dusty telling him about Craig's court order to take Johnny. Dusty assures Barbara that Johnny is safe with Lucy watching over Craig's. Dusty reminds Barbara that Johnny needs her and with Lucy's help they'll get him back.
Lucy and Craig set up house to make sure Johnny has everything he needs. Lucy reminds Craig how much Barbara loves Johnny. Craig tells Lucy about his plans in the works to have Johnny's name legally changed to Craig Montgomery, Jr. Lucy voices her opinion against the name change. Craig senses Lucy is becoming disloyal and suggests she not live with them. Lucy smoothes Craig's feathers and talks her way back onto Craig's side. Craig's lawyer comes in telling Craig the adoption will be overturned and he will not have to share Johnny with Jennifer's family.
Carly and Simon come home to an unlocked door knowing someone must have been there while she was out. Katie and Henry hear them on the porch and dive behind the couch to hide as Carly and Simon come through the door. Carly and Simon discuss things sitting on the couch, not knowing Katie and Henry are within earshot. Simon promises to protect Carly. Simon and Carly head up to the bedroom, leaving an escape route for Katie and Henry.
While working on her solar system project, Sage uses the diamond necklace for the sun! Carly is getting ready to meet Sage at her science fair, when she realizes her necklace is missing. Carly has a bad feeling about the necklace. Simon makes her promise that if something should happen, she will walk away - he will take the fall. Carly puts the pieces together and figures out Katie broke in and took the necklace. Simon tells Carly Katie has the fake necklace and Jack's analysis of it will resolve the whole issue. They'll be cleared. Meanwhile, Sage mentions to her friend how her magic crystal was right next to her mom's diamond necklace and she hopes she picked up the right one!
Katie shows Mike that she took the necklace. Mike is upset that she broke into Carly's and tells her he wants nothing to do with it. Katie talks Mike into going along with her plan to have Simon arrested.
Lucy goes to the station to tell Dusty about Craig's plans to get full custody of Johnny. Dusty asks Lucy to help him escape from the jail. He needs to finish what he started - he has to kill Craig.
As Gwen and Adam get ready to leave for their trip to Los Angeles to work on Gwen's demo tape cover shot, Jade expresses her disapproval about Adam and Gwen going alone and that she was not invited to go on the trip. Jade rants that if Gwen wasn't such a "spoiled diva" she could have gone along with Adam to L.A. Her tirade upsets Will and Adam tells her the entire trip is for Gwen and since Jade upsets Gwen so much there is no reason for her to go along. Adam tells Jade that when he returns he will make it up to her. Casey and Maddie walk into the studio and Adam asks to talk to Casey alone and then asks him how he got the money to pay him back. Casey lies to Adam and tells him he got it from old savings bonds and Adam asks him again to stop gambling. After seeing the two of them arguing, Maddie questions Casey about what he was talking to Adam about. Casey lies and says he was discussing how Jade makes Gwen uncomfortable.
After leaving the studio, Casey and Maddie walk around town looking for gifts for Henry. In searching for the perfect gift for Henry, a chronic gambler, the two talk about gambling and the rush of the win. As they are shopping the two run into Elwood, Casey's roommate and gambling buddy. While Elwood and Casey are briefly alone he asks Casey if he wants to gamble more that night on line. Casey says no, but Elwood tries to get him interested and even suggests that Maddie can play too. Casey cuts off Elwood and doesn't let him tell Maddie about the internet poker. When Maddie leaves to study for a test, Casey tells Elwood to never mention the gambling to Maddie. Elwood tries to pressure Casey into playing and tells him he has a way to guarantee that they will never lose.
At the same time, Gwen runs into a crying Iris in downtown Oakdale. When Gwen asks her what is wrong, Iris tells Gwen that her Aunt Candace died last night of a heart attack. Iris claims she feels guilty since Candace was coming to Oakdale to live with her and help her stay sober. As Gwen and Iris reminisce about Candace, Iris tells Gwen that the grief over losing her sister and the prospects of her bleak future are making her want to drink. In addition to the revelation about her aunt's death, Iris tells Gwen that Will has given her money and that the money was to keep Iris away from Gwen. Gwen is not angry with Will, but concerned that Iris will drink again, so she takes Iris back to her house and tells her she can stay there while she is in L.A. Will walks in and after overhearing Gwen and Iris talking, he asks whose idea it was for Iris to stay with them. After learning about Gwen's aunt's passing, Will agrees to let Iris stay one night at their house and he will go to the dorms and stay there. When Iris tries to tell Will that she wants to thank him and spend time with him, he tells her to forget it that she won't be part of his and Gwen's life. After Gwen and Will leave the house, Iris starts snooping around and finds Will's banking information that shows how much is in his trust. Will finds Iris with his bank statement and tells her to get out.
At the Oakdale police station Dusty asks Lucy to help him break out of jail and get Johnny back. When Lucy questions Dusty about whether or not he would try to kill Craig again, Dusty tells her he will find Craig and finish what he started. He tells Lucy that the only way to stop Craig is to kill him. Lucy begs Dusty not to hurt Craig, but Dusty tells her he will do anything to keep Johnny away from Craig. Lucy lets him know she loves him and leaves to return home. As she is going she runs into Margo who questions whether she is going to move in with her father and Lucy confirms she is moving in with Craig to take care of both him and Johnny. The two discuss Johnny's future with Craig and Dusty warring over him and she leaves determined to take care of Johnny.
After Lucy leaves the jail, Emily arrives to talk to Dusty who informs Emily that he doesn't trust her and that she is a worthless liar. Emily says that she wants to help him get Johnny back. After Emily explains to Dusty why she was working for Craig she tells him she is sorry and that with her help she may keep Craig from keeping Johnny. Emily assures Dusty that she will testify against Craig in any custody hearing and destroy his character.
Earlier, Craig finds the note from Lucy that tells him she has gone out and he questions where she might have gone. Before going to the station, Margo arrives at Fairwinds and asks Craig how he is feeling and also why Johnny is with him. Craig tells her about the judge giving him an overnight visit with his son and then tells Margo about his plans to get full custody of Johnny and having Lucy to help. Stunned by Craig's insistence on raising Johnny, Margo reminds Craig to return Johnny to Barbara tomorrow and then leaves for the station. After running into Margo, Lucy returns to Fairwinds, where she tells Craig that she misjudged Dusty and that she is happy to be with him and Johnny. When Craig grimaces in pain over his wound Lucy takes a look at it and convinces Craig he has an infection and must return immediately to the hospital to have it treated. Craig is grateful for Lucy's caring attitude toward him and goes to the hospital, leaving Lucy alone with Johnny. Lucy immediately goes to Craig's safe and removes a ton of cash. As Lucy prepares to leave with Johnny, Lucinda arrives and questions where Lucy is going with Johnny. When Lucy drops the purse of money, Lucinda sees the money and figures out that Lucy is running away with Johnny. Lucy admits to Lucinda that she is kidnapping Johnny. At that moment, Dr. Hughes is looking at Craig's gunshot and wound and tells him there is no sign of infection and that the wound is healing well.
Lily and Faith went out Christmas shopping. Faith admired a riding outfit in a shop window, as Lily spied Holden being friendly with the blonde and then go inside a building. Faith asked a distracted Lily what was wrong. Lily said nothing. She then reminded Faith they were supposed to meet Faith's friends. They saw them and Lily sent her off. Lily then went into the building and found the two dancing and went off on them. She accused Holden of having an affair. Holden got a chance to tell her he was only taking dancing lessons - it was his Christmas present to Lily. After Lily got over her embarrassment, she and Holden tried out some of his new moves.
Katie and Mike were at the police department to show Jack the necklace. Jack asked Katie where she got it and correctly guessed that she broke into Carly's house. Katie admitted she did, but said that her actions now made it possible for Jack to investigate Carly and Simon. Jack said that simply handing over the necklace wasn't really "proof" of anything. Vienna sashayed in and recognized the necklace as one of the crown jewels. Katie got excited, but Jack told her they'd have to follow procedure. Meanwhile, Vienna inspected the bauble closely and declared it a good fake. Jack sent it off for a real inspection and he left for Sage's science fair. Katie said the fake still implicated Simon and she would not give up.
At Sage's science fair, Carly fretted over the lost necklace and Simon told her not to worry. He said she didn't know for sure if anyone broke into her house and, perhaps, Sage "borrowed" it. Carly didn't think her daughter would take it without asking, but called her into an empty room to ask her. Sage told her she didn't have it but saw it on the couch, and she may have mixed it up with her "magic crystal" since they looked so much alike. Carly realized what had occurred and went to get Simon. Sage told Simon about the look-a-like crystal and he said he wanted to see it. Sage told them it was the sun in her solar system model. They ran out and saw that it was indeed a decoration on her sun. Jack walked in and Sage asked him to look at her project.
At Fairwinds, Lucy informed Lucinda she was taking Johnny away. She told her grandmother Sierra provided a plane. Lucinda told her she couldn't, that it would ruin her life. Lucy then explained Craig's bullet scheme and how Johnny would be torn between everyone fighting over him. Lucinda then asked about Dusty's feelings. Lucy revealed she knew Dusty would kill her father if he ever got out of jail. Lucinda wasn't happy but would go along with her plans.
Craig then showed up and called out for Lucy. Lucinda appeared and made herself a cocktail. Craig asked where Lucy and Johnny were. Lucinda stalled and said they went for a walk. Craig said she was lying. Lucinda said she was buying time and she didn't know where they were. She told him Johnny was just a trophy for him and they both were better off without him. Craig tried to show her the door and said he wanted to make up for all his mistakes. Lucinda told him possession wasn't love. Craig asked again. Lucinda said they were gone and he'd never see them again...Lucy and Johnny waited on a plane
Jack goes to the science fair at the hospital, where Carly tries to stall him before he goes to look at Sage's solar system project, which features Carly's diamond as the sun. Meanwhile, Simon offers to take pictures of Sage's project partner, Jill, and her mother, and as he does so, he tries to grab the diamond from the project. Sage takes Jack and Carly over to see her project; Simon uses that opportunity to take a picture of Jack, and while Jack is blinded by the flash, he grabs the diamond from the display and pockets it. Sage takes one look at the display and says her sun is gone. Jack tells her they'll help her find it, and he asks what it looks like; she tells him it looks "just like Mommy's necklace." Carly tries to tell Jack that Sage is just a little girl who thinks all sparkly things look alike, but Jack is suspicious. They look for the sun, while Jill approaches Simon, kicks him, and tells him she knows he took it. He tries to convince her she's wrong, but she's not buying it and kicks him again. He then tries to bribe her, first with a quarter, then with a $5 bill, but she says she wants $20, and he reluctantly agrees to give it to her, but Jill grabs his whole wallet instead. She kicks him again before walking away. Simon takes the diamond and goes into the next room, where he drops it into a biohazard waste can. Meanwhile, Carly and Jack take Sage to get some hot chocolate, and Jack asks Carly if he can see her necklace. She says she can't show it to him because she's lost it; he asks when and how she lost it, and she tells him it wasn't in her night stand this morning. He tells her it's at the station, and she realizes this means it must have been stolen. He says he can't tell her anything about that, but she says she knows it must have been Katie, because Katie has it out for her. Back in the room next to the science fair, the custodian comes in to empty the biohazard waste and finds the diamond.
At the shops in Old Town, Faith spots Holden talking and laughing with Tea and gets the wrong impression. She leaves before seeing Lily come out to join them.
Craig shakes Lucinda, demanding that she tell him where Lucy has taken Johnny. Lucinda fights back and pushes Craig away as Margo comes in. Craig tells Margo that Lucy has kidnapped Johnny; Margo takes them both to the police station. Barbara is at the station visiting Dusty, and she tells him that she's worried because she can't reach Lucy. Dusty tells her not to worry, that Lucy won't hurt Johnny. Barbara walks out of the interrogation room, and Craig storms in, sees Dusty, and shouts, "Where are my children, Donovan? You tell me where they are!"
Dusty tells Craig that if Lucy took Johnny, he's happy about it because it means Craig can't touch him. Craig says Dusty must have been in on this, and Lucinda, too, but Lucinda walks in and insists neither of them had anything to do with it. She tells them both of them have underestimated Lucy. Margo walks Craig out of the room, and Lucinda stays with Dusty and Barbara. Barbara says no one, even Dusty, is going to stop her from finding Jennifer's son. She leaves, and Dusty angrily tells Lucinda he can't believe she let Lucy take off with Johnny. Lucinda asks him where the wonderful man who married Jennifer and promised to care for her son has gone, and he tells her that man left when his wife died. She asks who Dusty thinks should be raising Johnny, and he angrily says "Me!" Lucinda tells Dusty to look in the mirror, because "that guy is the reason you can't have your son now!" Dusty says he doesn't care why Lucy took Johnny, he'll never forgive her; Lucinda says she thinks Lucy knows that, and she walks out. Dusty picks up the phone on the table and slams it into his arm repeatedly; Margo rushes in and tells him he'll refracture his arm. She says now she has to take him to the ER, which he probably already knew, and she calls for medical transport as Dusty looks on, satisfied.
Barbara goes to see Will and tells him about Lucy taking Johnny. Will says he'll do anything he can to help. Barbara asks him to talk to Paul, because Paul knows people who can cut corners to get things done. Will thinks they should wait a week to see if the police find Johnny, but if they haven't by then, he'll talk to Paul. Barbara agrees, then she asks where Gwen is. Will tells her about Gwen's demo record and the trip to Los Angeles with Adam; when she asks why Will didn't go, he says he had things to do in Oakdale, then he tells her he just found out he's been accepted at Oakdale University. Barbara hugs him and tells him how proud she is of him and suggests he call Gwen, but Will says he doesn't want to make Adam mad while Gwen's working. Barbara says he should call anyway and tell Adam that if he thinks he can tell Will when he can call his wife, he should think again.
At the Snyder farm, Luke and Jade talk about the new horse that Holden and Lily bought Faith for Christmas. Faith arrives, obviously upset, and says she doesn't want to see the horse; when Luke asks what's wrong, she tells him she thinks their parents are breaking up, because she saw Holden with another woman. She goes into Emma's kitchen, and Luke wants to follow, but Jade stops him, saying she's seen Holden with someone else, too. Luke's phone rings, and it's Holden; when he hears Faith is with Luke and Jade, he tells them to stay put, that he and Lily want to come tell them something together. Luke relays that information to Jade, and Faith overhears him and comes outside, saying that Holden and Lily must want to tell them that they're getting a divorce. Luke tells her that Holden didn't sound upset at all, and Faith says that's because he's already found someone new. She says she's going to the barn and doesn't want them to follow her; Luke starts to go anyway, but Jade says it's better to let Faith go for a little while because she won't be in the mood to hear Luke out.
Lily arrives and says that Holden has gone to the barn to check on the new horse; Luke tells her that Faith was very upset about them. Holden walks in and asks Luke where the horse is, because she's not in the barn; Luke says he put the horse in the barn, and Faith just went down to see her, but Holden says he didn't see any sign of Faith, either. Luke tells his parents that Faith thought they were breaking up because she saw Holden with another woman. Holden says he'll saddle up a horse and go look for Faith. After a few minutes, Holden returns, but he says all he found was the horse, not Faith.
