Liz arrives at the police station to beg Ric to abandon his heavy workload and join her for dinner. He's about to agree, but they are interrupted by a rabid Luke who insists that Ric look at the videotape he has with him. They pop in the tape, and see Scott Baldwin on it, very much alive. Scott tells Luke that he used the fire to escape an Internal Affairs investigation of his wrongdoings, and that he planned to make off with the treasure, but it was stolen. He promises to stop in to see Laura before he takes a tour of the world, angering Luke and prompting him to warn Ric that he'll kill Scott if Laura is disturbed. Ric reopens an autopsy on the body from the hotel, and prepares Liz again for it to be Zander.
Carly blackmails Alexis into representing her in the custody fight for Michael and Morgan. Alexis balks at the idea, but Carly promises to tell Sonny the truth about Kristina's parentage unless Alexis gets her the boys. Alexis tells Carly she will only do it if Carly plays by her rules, and Carly agrees. Alexis then promptly tells her to get rid of Alcazar. Carly sadly relays the news to Alcazar upon his return, and although he resists at first, he then understands and promises to help her in any way he can. Alcazar returns awhile later with an additional offer to help Carly win back her kids: he's giving up his illegal business for her.
Sonny tells Sam that he is ending their relationship before he hurts her. Sam protests and tells him that she isn't looking for a commitment, and that she likes him but is not interested in love. Sonny believes her, and agrees to contact her later on the boat. They kiss in the hall out of sight of the boys, but Justus walks upon them and is not thrilled at what he sees. He warns Sonny that the custody battle will get ugly, and that Sonny will be fighting for his life. He demands that Sonny end both his relationship with Sam and any illegal business activities if he has any hope of getting his sons.
Jason tells Alcazar that he will not work with him under any circumstances, even for the sake of Michael and Morgan. Jason blames Alcazar for the mess the Corinthos family is in. Once Alcazar leaves, Jason yells Meyer because of delayed shipment on the docks and is told that the dock leasing agreement is having problems. Jason goes to the penthouse to discuss the matter with Sonny, and tells him he thinks Faith is behind it. Sonny isn't so sure. He considers that Alcazar might be behind the problems, and orders Jason to go to the dock leasing company and find out who is in charge.
Emily is disgusted by Helena's continued attempts to break her and Nikolas up. Helena insists that they split up, and warns them both that Cassadines destroy those that they love, and while Emily thinks she's being melodramatic, Nikolas knows she speaks the truth. Emily decides that she doesn't care about a potential curse on the Cassadines, that she will be with Nikolas no matter what, but it's clear that Nikolas is not convinced. They are interrupted by a call from Lucky, telling them that Zander is the body that was found in the hotel. Despite Emily's protests, Nikolas decides he has to tell Ric about his part in Zander's death.
Maxie begs Georgie for money to fund her trip to Canada. She tells her that she's going after Zander, who is wounded and can only be helped by her. Georgie thinks she's crazy, but Maxie says she has to do it. They carry their argument to Kelly's, where Tom, Dillon, and Sage are watching a report of Ric telling the public that Scott Baldwin is alive, and that Zander is the body that was found in the hotel. A devastated Maxie refuses to believe that Zander is dead. She races to the police station to get information, and happens upon Nikolas turning himself in for locking Zander in the furnace room. Nikolas makes it clear that he only detained Zander, so Ric has no problem with letting him go, and Maxie runs out of the station to be comforted by Georgie. As Nikolas and Emily begin to leave, however, Ric stops them and tells them the autopsy report has just come back with the information that Zander was killed by a blow to the head from a blunt object before the fire even began. Nikolas swears he didn't strike Zander with anything, but Ric arrests him for murder.
Jax finds Sam on the docks, and the two begin to argue again about her relationship with Sonny. Jax tells her that she's so afraid of commitment, that she only goes after things that are just out of reach and that can't possibly work out, Sonny included. She asks how he can know anything about her relationship with Sonny, and he tells her he knows she's in it because it can't work out, and if it did, she slept with Jax the night of the fire, so she can sabotage it to save herself. He warns her again that Sonny destroys people's lives, and leaves her alone on the docks.
Alexis pays Sonny a visit and informs him that she's Carly's new attorney. She tries to get him to reason on the kids, and keep things out of court. She tells him Carly is willing to work out a joint agreement, but Sonny isn't interested. He shouts that the boys will not be separated from him, and that the mother is no object in the life of his children. Alexis draws in her breath at his reaction, and knows that she must win the court case for Carly if she wants to keep her own daughter. She tells Sonny that he'd better find a way to compromise, because she will win the case and he stands to lose his children for good.
Courtney assures Jax she is starting a new life with her money, but he warns her to have a plan or she'll fall back into Jason's life. She pays off her dad's gambling debts, and begins to take control of her life. When Mike asks her about the money she was given, she hesitates and wants to keep things quiet for awhile. Later, Jason goes into the office of the dock leasing company, and demands to speak to the CEO. Courtney spins around in her chair and is puzzled that he's looking for her.
Luke arrives at the casino to find a drunken Skye wallowing in her misery. He assumes that Edward has died, but she announces that Edward is fine and has made her the sole heir to the Quartermaine fortune. She's drowning her sorrows before she screws things up. Skye tells Luke that she's more afraid of being the favorite than being the unwanted, because then she has more to lose. He responds that not a single one of the Quartermaines is worth the grief she's going through, and suggests that she tell them to take their company and go to hell.
Courtney tells Jason about the reward that she was given for saving Mrs. Phillips and the dog. She tells him that she's now the CEO of the company, and is willing to give him the same agreement he's always had on his dock space, but with some additional stipulations. He must not be involved in any violence or illegal activity, or she will take away his leases. When Jason responds that she's putting him in an impossible situation, she tells him that it isn't for a legitimate business. They continue to argue, with Jason assuming that Courtney's actions are to punish him, but she says they have nothing to do with him or their failed marriage, she simply will not hurt her chances of success by dealing with illegal activity. Jason says he needs to think things over, and leaves. He returns with a description of his first shipment, proving its legitimacy. Courtney thanks him for coming back, and says they can find a way to work out an agreement, but Jason isn't so sure.
Carly tells Alcazar that he can't just leave the business when he wants to. He responds that she's confusing him with Sonny, who couldn't or likely wouldn't, leave the business, but he will do it because he loves her. Faith arrives at Carly's house, and Alcazar offers her all of his local holdings. Faith agrees, but warns him once he sells to her it's a done deal- even if Carly doesn't work out. Carly continues to worry about Alcazar's safety if he leaves the business, and while he's touched by her concern, he voices that he knows she doesn't yet love him. Carly tells him she doesn't know how to feel about everything, but he assures her he's willing to wait for her to fall in love.
Sonny warns Alexis that if she goes after his children for Carly, he will treat her like an enemy and take her down. She asks him why he won't reason with Carly, and why he'd hurt his children by allowing them to grow up without a mother. He tells her that he won't let his sons be raised by a woman whose mind has been turned by a horrible man, the way his mother's was. Justus walks in on the two of them, and Alexis warns him to get Sonny to agree to joint custody of Michael and Morgan. Sonny asks her why she's helping Carly, and an angry Alexis tells him she's sick and tired of watching him bribe and bully everyone to get his way. After she leaves, Justus rails at Sonny to start thinking clearly and realize how unreasonable he's being. Sonny tells him that he loves his children more than his own life, and he loves his wife like that too, but he lost her in an instant with a bullet, and he can't lose his kids as well. Justus asks him if he knows what he really wants- custody of his sons, or to win his wife back?
Ric arrests Nikolas for the murder of Zander Smith, as Emily and Liz watch. Nikolas swears that he's innocent, and Emily demands to know why Ric is rushing to judgment. Alexis hears the news and rushes to the station. She tells Emily and Liz that she will find Nikolas the best attorney, and when they question her, she admits she's already representing Carly and can't do both. Emily is stunned, and wants to know why Alexis would pick Carly over her own nephew. Later, Liz informs Ric that she has no intention of sitting by and watching him put Nikolas away for a murder that he did not commit.
At the casino, Luke convinces Skye to clean herself up and play hostess, which she does grudgingly. Tracy walks in, and Luke tells Skye to go and face her rather than hide. But when Skye approaches Tracy, she is shot down immediately by the news that Edward's will is null and void due to his insanity, and that Tracy has power of the estate and plans to kick Skye to the curb. Skye runs off, and Luke moves in to deal with Tracy at the gambling table. After he relieves Tracy of her money and gives her a warning, Luke joins Skye on the balcony. She lets him know that she is sobering up to fight Tracy, and won't let the Quartermaines get to her.
Sonny goes to the boat to find Sam and bury his sorrows in quick sex with her. She willingly agrees, and the two hit the sack. Sonny dresses quickly afterward, much to Sam's dismay, and he reminds her that he is not going to get emotionally involved with her because he has nothing left to give to her. He also reminds her that she was okay with their arrangement, and says that if she's changed her mind, he'll walk out the door. Sam tells him she hasn't, and that she wants him to stay. She lets him know that because he doesn't ask anything of her, she wants to give it. Sonny responds that he's just trying to get through the problems of his life, and it's clear that while he is using her for immediate comfort, she is feeling more.
Alexis shows up at Carly's house, and is irritated to find Alcazar with her. After goading Alexis, he leaves, and she unleashes her anger on Carly. Carly will have none of it, and defends Alcazar as a legitimate business man. Alexis warns her that Sonny's lawyers will go after anything and everything they can to win the case for Sonny, and she begins to inquire about his childhood trauma and his mental state. A shocked Carly refuses to use his abusive childhood home against him, and doesn't want his mental breakdowns to be made public either. Alexis tells her to wise up and realize that Sonny will stop at nothing to keep Carly's children from her.
Carly tells Alcazar that she's concerned that Faith will act violently against Sonny, adding that she's worried for him too.
At the same time, Faith warns Sonny that since she now controls Alcazar's holdings, Sonny had better show her a little respect. Alcazar knows that imminent violence will work against Sonny during the custody hearing.
Jason carefully points out to Sonny that he is losing control of his actions. Alexis lets Carly know the importance of Jason taking her side in court. With that in mind, Carly tells him that she will divulge Sonny's shaky mental state in court unless Jason testifies on her behalf.
Georgie relieves Tom of his duty to act as her boyfriend. Tom, however, starts showing interest in her, which prompts Dillon to attempt to sabotage his efforts. Meanwhile, a troubled Sam gets stuck in an elevator with Emily.
Emily and Sam start to hit it off while being stuck in the elevator at G.H. Sam confides in Emily about her affair with Sonny. Emily tells her that she thinks Sonny and Carly brought their problems on themselves. Sam tells her that she is comfortable around Sonny because he doesn't expect a lot from her and likes her for who she is. Emily and Sam are rescued from the elevator. Sam wishes her luck and hopes Nikolas is found innocent soon. Meanwhile, at PCPD, Nikolas asks Alexis why she can't defend him but is willing to help Carly so much. Alexis tells her that she can relate to Carly's situation and blurts out that she doesn't know what she would do if Sonny took Kristina away from her. Nikolas asks her why she thinks Sonny would do that. Alexis realizes her slip of the tongue and covers up her mistake by telling him that she meant that she wouldn't want the father of her child to take Kristina away like Sonny is taking Carly's kids away. She promises to get him a new lawyer and that if the case against him starts to be bad in court she will come right over and take over the case. Jen McNeil (not Jan like I thought before) shows up and announces to Nikolas that she is his new lawyer. She asks him if he has any idea who could have killed Zander that night. Nikolas has no clue but knows it wasn't him. Emily shows up at the police station to see Nikolas. She meets his new lawyer. Ric comes into the visitor's room and offers a deal to Nikolas. He offers Nikolas a manslaughter charge to accept, a charge that would only keep him in prison for a minimum of 5 years. Nikolas rejects his deal and claims he is innocent. Ric tells him that he has a solid case against him for murder and tries to encourage him to take the deal. Emily tells Ric that Nikolas shouldn't go to prison for something he didn't do and asks Ric to investigate some more. Ric leaves the room and runs into Lucky. Lucky isn't pleased with Ric for not investigating Zander's murder enough and trying to pin the murder on Nikolas. Ric asks Lucky if he is afraid that Nikolas may have killed Zander and that is why he is trying so hard to push him. Nikolas tells Emily and Jen that he wonders what Ric is up to since he seems to be working so hard to make a deal with him when he already has a solid case against him. Later, Ric shows up at G.H. and is late for Liz's sonogram. Dr. Meadows is concerned about Liz's blood pressure being too high and advises Liz to calm down and take it easy. Liz asks Ric to try to do whatever he can to prevent Nikolas from going to prison since he is her friend and she cares about him. Later Liz goes home and reads her mail. She finds a letter addressed to her with Zander's name in the upper left hand corner. She quickly opens it to find a quick note inside the envelope. It says that if she got this letter it means that he is probably already dead and tells her that Ric was the one who killed him.
Jax pays a visit to Courtney at her new office. He tries to persuade her to let him help her in her new business. Courtney refuses to accept his help and tells him that he is underestimating her just like Jason and Sonny are and that she is going to prove them wrong.
Sonny and Justus discuss the custody battle at the penthouse. Justus warns Sonny about the judge and how he may decide to put Michael and Morgan in foster care if he doesn't like Sonny or Carly's behavior towards each other. Sonny threatens to take his boys out of the country before letting a judge take them away. Sonny complains to Justus that Alcazar is getting involved in the custody battle and is trashing him and that he now has to make Carly look unfit to the judge and gives Justus permission to use her past against her in court. Justus asks him if he really wants to do that to the mother of his children. Sonny tells him that he doesn't want to have to hurt Carly but she is not giving him much of a choice. Meanwhile, Jason gets upset with Carly for trying to blackmail him into testifying on her behalf by threatening to expose Sonny's mental instability in court. Jason tells her that by exposing that secret in court, she may as well sign his death warrant since his enemies will use Sonny's vulnerability against him. Carly tells him she doesn't want to expose Sonny's mental instability but that Sonny is pushing her into a corner by refusing to share custody of the kids with her. Jason tells her she always has a choice and suggests that she talk to Sonny in person and tell him what she just told him. Carly doesn't believe that will help anything. She asks Jason not to let her or the children down and tell the judge the children belong with her. Jason doesn't tell her yes and leaves.
Jason arrives at the penthouse and overhears Sonny tell Justus to provoke Carly in court and get her to lose it on the stand. Justus tells Jason that they need to talk and go over his testimony. Sonny orders Justus not to worry about Jason's testimony since he will be telling the judge the children belong with him. Jason asks Sonny what he is doing and suggests that he stand back a little and calm down. Sonny gets upset with Jason for telling him what to do about the custody of the children. Sonny assumes Jason will be on his side in court and Jason doesn't say no but is torn. Carly goes to see Courtney in her new office and asks Courtney to testify on her behalf in court and tell the judge the children belong with her. Courtney tells her she can't do that and that she plans to tell the judge that Sonny and Carly should share custody. Carly tells her that Sonny won't let her share custody and that he never allowed her to explain what happened with Alcazar. Courtney tells her that she doesn't approve of her seeing Alcazar, who she feels ruined Carly's life. Carly defends Alcazar to Courtney. Courtney isn't convinced he is some knight in shining armor. Courtney doesn't give her an answer one way or another. Courtney suggests to Carly that she go back to Sonny and try to work things out. Carly thinks that it is too late for that. Jason suggests the same thing to Sonny, who thinks Carly would not go back to him now that she is sleeping with Alcazar. Jason tells him she only did that when she found out he slept with Sam. Sonny doesn't believe Carly started her affair after he slept with Sam.
Sonny leaves the penthouse and goes to see Sam. Sam returns to her hotel room to find Sonny there with some romantic candlelit table. He explains to Sam that Michael isn't going to be happy seeing him smile when he is around a woman who isn't his mother. Sonny tells Sam that she can get out of the affair anytime she wants to. Meanwhile, back at the penthouse, Courtney shows up to visit the children and finds Jason in the living room putting together a swing for the baby. She tells him about Carly's visit and how she expects her to testify for her. Jason tells her that Sonny assumes the same thing for him as well as Carly and that he wants them to share custody and was going to tell the judge that but somehow he would betraying both of them. Courtney agrees with Jason that Carly and Sonny should share custody. Courtney goes to hand him a screw for the swing and he grabs it at the same time. They find themselves touching hands and are reluctant to pull away. Michael comes downstairs and tells Jason that Morgan is crying and Leticia can't get him to stop. Jason goes up to help with the baby. Michael asks Courtney if she and Jason are getting back together. She tells him that they aren't. Michael asks her why she and Jason get along so well when they aren't together anymore but his parents are always fighting. Courtney tells him that she and Jason still care about each other and that they have no reason to fight. Jason hears what she tells Michael as he brings Morgan downstairs with him. The phone rings so Jason hands the baby over to Courtney to answer it. It is a call about the custody hearing. Sonny gets a call from the judge while he is at Sam's room. The judge tells him that he is going to ask Michael who he wants to live with. Carly and Alexis are at her house when Alexis gets the call from the family court and tells the person on the other end that they will cooperate fully.
Liz gets a letter from Zander stating he must be dead if she received this and Ric killed him. Liz asks Ric to drop the charges against Nikolas and she'll have less stress in her pregnancy. She tells Nikolas that everything will be fine and she knows he is innocent. Liz questions Lucky about Ric's investigation into the Zander's death, but Lucky brushes her off. Nikolas makes bail. Lucky tells Nikolas that Ric is pushing for Nikolas to be found guilty, but he is still looking for the real killer.
Dillon surprises Sage at Kelly's with birthday pancakes. They compare childhoods and old birthdays. Dillon admits that he set Tom up to kiss Georgie in public so that Georgie would hate Tom. Georgie and Maxie are at the hospital, as Mac's condition has taken a turn. Monica tells them that there is fluid in his lungs and to give him time. Maxie calls Dillon so he can support Georgie in this time. Tracy brings flowers to Georgie and Maxie and says she wants to help in their time of need. Georgie tells them to go to away and Maxie reveals she heard the electrician tell Edward that the wiring was faulty. Tracy tries to cover by saying Edward isn't in his right mind, while Justus has already warned her about possible wrongful deaths suits. Justus said Tracy needs to protect the family and not hide from all responsibility. Sage runs into Tom at Kelly's and Tom reveals that Georgie just wanted him to pretend to be her boyfriend to make Dillon jealous. Dillon arrives at the hospital and is horrified that his mom came to "talk" with Georgie.
Michael is going to be questioned today by the Court as to who he wants to live with. He tries to play sick with Jason, who tells him to tell the judge the truth. Michael says he wants to live with Sonny and Carly. Sonny tells Sam that he hopes he does not have to do the things he might to keep the boys. They compare childhoods to the current custody situation. Sonny tells Michael to choose living with him, so that Sonny can protect him from all bad men that Carly might bring into Michael's life. Sam goes to Carly stating that she feels Sonny will agree to shared custody if Carly dumps Lorenzo. Carly called Sam a convenience in Sonny's life and that she will never know what makes/made Sonny who he is. Carly said she would agree to Sonny's terms if he dumped Sam. Michael tells the judge he wants to live with both parents. Carly is offered shared custody with Sonny, but on his terms. She declines as Sonny is trying to have power over her life, where he kicked her out of his house, so no deal. Jason tells Courtney to let him know if Faith approaches her, which Faith did earlier. Jason tells her that Faith will use this time to start a war and there can't be any violence during the custody fight. Faith wants to be partners with Courtney, while Courtney has said no. Faith goes to see Mike at Kelly's and realizes he is the ticket to getting Courtney to cooperate.