At Forrester, Thorne and Katie announced to Pam, Charlie, Ridge, Eric, Quinn, and Brooke that they had gotten engaged. Eric said that Katie was glowing, and he congratulated Thorne. Ridge hugged his brother and said he would be a great husband and wonderful father to Will.
Brooke asked if Thorne and Katie had told Will. Katie said they had, and Will was happy and excited. "He adores Thorne," Katie said. Pam said that Thorne, Katie, and Will would make a beautiful family. Quinn asked about Bill's reaction, and Katie quietly said he had been furious. Katie looked at Brooke.
The group agreed that Bill wouldn't give up custody of his son without a fight. "Bill doesn't negotiate," Ridge said. He worried that Bill had something up his sleeve. Ridge warned that the family had to be ready to fight and "fight dirty."
"What are you suggesting, Ridge?" Brooke asked. Ridge responded that Katie, Thorne, and Will were a family, and they had to band together as a family to help. Eric and Quinn felt that the court would rule in Katie's favor and added that her family had a stronger case with what was best for the child. Ridge argued that the case would never get to court because Bill would find a way to do something to prevent it. "You can't trust that guy," Ridge said, and he left.
Brooke talked to Katie in private and said a custody battle was going to hurt a lot of the family, including Katie and Will. "You don't need custody," Brooke said. Katie disagreed. Katie said she couldn't count on Bill, and neither could Will. She had to take control. Brooke was afraid it was going to be more damaging, and the situation was going to explode.
At Spencer Publications, Bill announced to Justin that Thorne and Katie were engaged. He added that the couple had announced it to Bill while Will had been present. Justin was surprised and said that telling Bill in front of Will was cold. He asked Bill if Will was happy, and Bill said he was. Justin wondered if Will had been coached. Bill blamed Thorne. Justin warned that the marriage would work in Katie's favor for custody.
Bill got defensive and said he could get married, too. He joked that he would marry Justin. Justin reminded Bill that he would always have visitation rights, but Bill argued that he would never jump through hoops and be living on Thorne's schedule to see his son. Justin said he'd talked to a family lawyer who said Katie offered the stability Will needed. "I will not lose Will. Whatever it takes," Bill said.
After Justin left, Ridge showed up, and Bill suggested Ridge had to have gotten time off from hemming dresses. The conversation became more derogatory. Ridge wondered if Bill was grumpy and having a bad day. Bill said he never had a bad day. Ridge believed Bill was falling apart and about to lose his son. Bill smirked and sighed.
Ridge maintained that Bill was getting what he deserved after chasing after Steffy and ruining her marriage. Ridge made a lot of accusations and promised that Bill would lose everything. "Look at you," Bill said. Bill added that Ridge was goading and baiting Bill into hitting him, but Bill wasn't going to do it. Ridge insisted that Bill was going to lose his son. Bill countered that Thorne was nothing "less than a zero."
Bill warned that he would "fight to the death to protect" Will. Bill also laughed and said that Ridge was always "three steps behind." Bill threatened that he was going to win, and he had a surprise for Ridge and his family. "Ain't a damn thing you can do to stop it," Bill said.
At Forrester, Xander met with the other models and asked if they called themselves the mod squad. Danny said they didn't do that. Steffy and Sally were present and took credit for discovering Xander. Steffy and Sally explained that Xander had had "an unexpected audition" when they'd found him changing his clothes. Steffy also announced that Sally would be designing for the Intimates line.
Hope overheard the news when she walked in and noted that it was news to her. Steffy asked the models to leave, but Hope asked Sally to stay. Hope asked what was going on, and Steffy reiterated that Sally would be putting her time and talents into the Intimates line. "Steffy, Sally is a member of my team," Hope said. Hope added that she should have been consulted -- it was a question of respect.
Steffy said that Hope had to have been upset about her hiring practices. Hope maintained it was more than that. Hope was curious about why Sally would want to design for Steffy. Hope remembered that Sally had an interesting portfolio. Sally agreed and said that it was because of her portfolio that Steffy wanted her. "I had my own line and ran my own company," Sally said. She added that Steffy had given her the boost she needed.
Hope argued that Sally had cost the company millions. Steffy agreed, but she said Sally had recently proven her loyalty, "and everyone deserves a second chance."
Hope and Steffy asked Sally to leave, but Steffy reminded Sally that she had been involved in a private conversation that was never to be repeated to anyone, "or you will be fired." Sally agreed and promised to be a valuable member of the Intimates team and Forrester Creations. Sally left.
"Now give me your best shot," Steffy said to Hope. Hope was upset that Steffy had shown little respect to Hope and her line. Steffy countered that Sally was a good designer, and Steffy remembered that Hope had only hired Sally because Eric had wanted her to do it.
Steffy and Hope argued about competition and successful lines, and Hope reiterated her opinion that Steffy had persuaded her dad to choose her line over Hope for the Future. Steffy maintained that life wasn't fair in love and in business. Hope shook her head. Steffy added, "My life does not revolve around you." Hope was unhappy and accused Steffy of showing her true colors; she said Steffy was out to get Hope, "and we both know why." Steffy shook her head.
In another part of Forrester, Zoe, Danny, and Xander discussed that Steffy had hired Xander "on the spot" as a model. Danny left, and Zoe cooed that she had always known Xander could be a model. Xander said they had to keep it professional. Zoe agreed. She added that they had always been good together and would continue to be good together "while wearing very little." She kissed him and promised to coach him, but she expected that he would be a natural.
• Eric is surprised by Ridge's deep investment in Will's custody hearing.
• Katie explains to Will that Thorne becoming Will's stepfather didn't replace Bill as Will's father.