Phillip Chancellor III was the love child of Jill Foster and Phillip Chancellor II while Phillip's father was married to Katherine at the time of conception. Though Jill and Phillip II had a marriage performed on his deathbed, Katherine had the marriage legally invalidated, stopping any inheritance to Jill or Jill’s son, and their use of the Chancellor name.
In 2007, shortly after getting a DNA test that confirmed Jill was actually Katherine’s daughter, Katherine began having disturbing nightmares of a baby crying. Through the help of psychic Silvia Brown, whose card reading turned into a séance with Jill's dead son Phillip, Kay began to remember a ring and a scene where she was giving someone a baby. When the truth finally came back to Kay, she was forced to reveal to Jill that Kay had switched her son Phillip for another baby shortly after his birth, and had given a woman named Violet an expensive ring to secure the deal. Because of her heavy drinking and shame, Kay had blocked this out all these years. Jill was torn between being livid with Kay while relieved that her son Phillip was not dead after all. They hired J.T. to try to track down the real Phillip Chancellor III, and Amber Moore also did her own research consulting tarot cards, psychics, and the Internet. Amber found Cane, who said his adopted mother was named Violet, and that he was searching for his mother and came to Genoa City from Australia on Amber’s lead. Amber and Cane got cozy, and after she discovered the possible link to the Chancellor millions, she took him to Las Vegas to get married, to keep him from being deported back to Australia. At the last minute, Cane decided against the marriage, so Amber drugged him and got her friend Ali to take his place in disguise, then the next morning, told him he was too drunk to remember being married.
A DNA test later proved Cane to be the real Phillip Chancellor III, son of Jill. The body of the young man buried as Phillip was exhumed and found not to be Jill's biological son, but his real identity was not investigated nor disclosed. The explanation told at the time was that Violet, a flight attendant, died in Arizona when Cane was only 2 weeks old. Her brother Langley took the baby home to Australia and raised him as his own, naming him Ethan "Cane" Ashby.
Amber continued to trick her way into Cane's heart and impending fortune. She staged power outages in their apartment and a burglary at the Chancellor Estate which eventually led Katherine to ask Amber and Cane to move into the Estate. Kay asked Cane to take a position with Chancellor Industries as Property Manager, but he refused, saying that he was not qualified and did not want a hand-out. But Cane was talked into taking the job temporarily until Kay could get a permanent person. Just as viewers began to trust Cane that his claim was legitimate, a phone conversation between Cane and his uncle Langley in Australia inferred that he was conning everyone.
Lily became interested in 31 year old Cane Ashby. Cane tried to deny his feelings, since Lily was only 19 and Neil disapproved, but they agreed to remain just friends. Meanwhile Neil began a sexual relationship with Karen Taylor. Karen moved in with Neil among all of dead wife Dru's things and Neil's memories. Devon and Lily had a hard time getting past his "disrespect for Dru" but came to accept Karen.
Due to a mini-stroke, Katherine decided was time to put her house in order. She took a liking to Amber, because she saw a lot of herself in the girl. Katherine hired Amber to assist in writing her memoirs, and also invested in Amber's designer fashion line. Kay made Jill CEO of Chancellor Industries, Cane Director of Acquisitions and later Vice President of Jabot, and made Nikki Newman CEO of Jabot. Nikki hired her lover David Chow as Co-CEO and Brad Carlton as another Jabot executive. Not being confident in Nikki's abilities, Jill micro-managed Jabot.
Lily won the Fresh Face of Jabot contest, and her prize was learning to model. But hard as they tried to remain just friends, Lily and Cane consummated their relationship on Valentine's Day. After they were caught by Neil leaving their room at the Athletic Club still bathed in afterglow, Cane set the record straight and told Neil he was in love with Lily and promised not to hurt her. Lily became busy with her modeling career under the tutelage of professional model handler, Chloe, working long hours on her cover shoot for the launch issue of Restless Style magazine/webzine. Lily flunked out of college, and was not eating due to pressure from Chloe about her figure, then discovered she was pregnant. After much indecision about whether or not to terminate the pregnancy for her career, Lily finally told Cane and her father. But after she went to her mother's old ballet studio to feel close to her mother, Lily decided to have the baby. Later Cane staged a lovely marriage proposal at the same studio, but Lily was hesitant to say yes, afraid he wanted to marry her for all the wrong reasons. Meanwhile Neil made plans to raise Lily's baby with Karen, without consulting Lily, Cane, nor Karen beforehand, causing Karen to feel disrespected and move out. But when Cane and Lily went for the first ultrasound, it was discovered that there was no more baby. It had dissolved on its own due to imperfection. Cane and Lily were devastated, Karen consoled Lily, and Kay and Jill consoled Cane. Not long afterward Lily received another blow. Due to the intervention of a consultant, Lily was dropped from the Restless Style magazine/webzine cover. Chloe needed a place to live, so moved in with Devon and Lily. Cane was worried about Lily's emotional state and asked Lily to move in with him, but she turned him down. After some soul-searching, Lily decided to go back to college and model as a part time job. After Lily discovered that Chloe had made a drunken pass at Cane and Devon on separate occasions, she threw Chloe out. Cane helped Chloe find a place to live just to get rid of her. Then one night after Chloe discovered she was pregnant, she got Cane drunk, then offered him a ride home. After Cane passed out in her car, she made it look as though they had had sex when he awoke.
The 2008 Charity Gala, organized that year by Sabrina and Victoria under the watchful eye of Kay Chancellor, was in full swing with all the Genoa City regulars attending in cocktail party attire. Devon and Ana entertained singing with a chorus. Chloe chose the occasion to announce her pregnancy by Cane just as Cane was proposing to Lily. Lily insisted on a prenatal paternity test, and when the results did not rule out Cane as the father, she gave Cane back his ring and told him he should marry the mother of his child instead. Cane gave Chloe the ring and moved her into the back room of his house, claiming he was doing it for the child. Chloe began flaunting the ring and her pregnancy of a Chancellor heir all around Genoa City. Cane and Chloe were married by a Justice of the Peace. His mother Jill and grandmother Kay decided to make the best of it since Cane had just been named CEO of Jabot and made their engagement party into a wedding reception. Chloe played sick as an excuse not to attend, but Cane discovered her lie. When Chloe showed up with Cane, Esther was shocked to see that the dark-haired model bodied Chloe was actually her daughter Kate! Even Kay was amazed, remembering her namesake Kate as a 30 pounds overweight blonde, with glasses.
Chloe told Cane how her father rejected her mother before she was born. As a child, Chloe had had a worn dirty stuffed giraffe named Elmer that she had carried around until her mother changed out her room when she became a teen and threw out everything that she loved, replacing the giraffe with a white bear. She told how she had been stuck in boarding school and had been ashamed of her mother being a maid. Chloe had legally changed her name before her arrival in Genoa City. Cane only tolerated Chloe and still pined for Lily. Chloe told Ester she would never get over her resentment of being shipped off to boarding school all her life, but Esther said she had done it for Chloe’s own good, so that Chloe wouldn't end up like her. Chloe told Esther that a selfish, arrogant, and unfaithful guy had broken her heart, and that she would never love anyone else again, including Cane. From flashbacks it was obvious that Billy Abbot had been that guy, he was the father of Chloe’s baby, and that she had set up their first meeting in New York City. They had had an affair, she had gotten into his email and discovered that he had cheated on her, and he had broken her heart, so she had stalked him. Yet Billy was still her occasional “booty call” until she discovered she was pregnant.
Lily decided it was too painful working with Cane and quit the Fresh Face of Jabot job. Cane offered it to Lily’s best friend Colleen, who accepted once Lily assured her that it was okay.
Billy visited Genoa City and reunited with his mother, Jill, and finally met her other son, his half-brother, Cane. Billy's other half-brother, Jack, convinced him to move back to Genoa City to help Jack get Jabot back into the Abbott family, and to get back at Cane for usurping his life by going to work at Jabot again. Cane invited Billy and his girlfriend over for drinks to get to know Cane and his wife Chloe, unaware that Cane’s ex-wife Amber was Billy's girlfriend, and that Chloe had a past with Billy. Billy confronted Chloe the next day and accused her of just wanting to bag a Chancellor. Billy told Cane that he didn't mind that Cane had taken over Jabot, and Cane convinced Billy to take the Director of Marketing position, with emphasis on the new teen line Starblaze.
Katherine began having some recurring memory loss, but was covering it up pretty well. Gloria took advantage, pulling tricks to convince Kay she was losing it in an attempt to get enough of Kay's Jabot stock to have controlling interest. Kevin helped her once by moving Kay's car to make Kay think she'd misplaced it, but Jana found out and disapproved. Luckily Jill caught and stopped them, just as Kay was signing over the stock. Esther, Cane, and Jill wondered if Kay was still capable of driving, let alone overseeing Chancellor and Jabot, even with Jill and Cane in charge of each, so Jill took away Kay's keys.
Jeffrey spotted Marge drunk and assumed it was Kay. Kay got $75,000 in cash from the bank to get Marge into rehab, but on her way, she left the bag with the money at Crimson Lights, and Kevin, unable to catch her, was keeping it in his safe. Jill and a Chancellor lawyer forced Kay to get checked out for her memory problems. While Kay was waiting for the doctor, Nikki discovered how bad Kay had gotten when Kay referred to Nikki's dead husband David as though he were still alive. After seeing the doctor, Kay talked them into giving her another day to check into the hospital so that she could secretly help Marge, then Kay disappeared.
Jeff convinced Gloria, Nikki, and Esther that Kay was drinking again. Actually, Kay and Marge were in a bad car accident on the way to rehab. Kay was thrown clear, but Nikki and Jill, who were out looking for Kay, found Marge dead in the car. Not knowing about Marge's reappearance, they assumed it was Kay's body. A funeral was held, and several people from Kay's past attended: her son, Brock; her late grandson Phillip's wife, Nina; her stepson and stepdaughter, Danny and Gina; her attorney, Mitchell; and her old friends Liz Foster, Traci and Ashley Abbott, and Dina Mergeron. Daniel Romalotti sketched a picture of Kay, which was framed and placed on her casket.
Kay's will was read, and son Brock received one percent of her billion-dollar-plus worth in trust to continue his good works and was named Chairman of the Chancellor Foundation. Her stepchildren, Gina and Danny, received one-half of one percent in cash. Esther received one tenth of one percent and Kay's half of the mansion, so that Esther could live her life in financial freedom. Nikki received all of Katherine's jewelry, including a family heirloom emerald and diamond ring given to Kay by her mother. Grandchildren Cane, Billy, McKenzie, and Phillip received one-quarter of one percent in trust. Katherine left one fifth of one percent to Amber, so that she and Daniel could pursue their artistic goals, and gave Amber the sole rights to her memoirs, which Jill had forbidden Kay to publish. Jill was left the remainder of the assets, all but five percent of Kay's Jabot stock. That five percent, in addition to a Ming vase, was left to Gloria because John Abbott had given both to Kay. Jill was livid, knowing that the Chancellors now were no longer majority stockholders. Chloe announced that her baby was going to be a girl, and her middle name would be Katherine.
Esther and Jill had a rough time getting used to being housemates rather than maid and owner, but Esther held her ground. Meanwhile Marge's friend Murphy found Kay, assuming it was Marge, lying by the creek near the accident. He took her to his house trailer and nursed her back to health. But Kay's memory was fuzzy, and she was working at the diner trying to be Marge and remember her life. Murph and Marge's co-worker, Pearl, were curious about Marge's elegant emerald ring, so Pearl took it to the pawn shop, where they offered her $5000 for it. So when Marge found out that Murph's bait and tackle shop was near bankruptcy, Marge took the ring in, and the real Kay emerged as she haggled with the same clerk to get $10,000 for Murphy. As she left, the clerk admitted on the phone that it was worth at least $250,000.
A Jabot shareholders meeting was called, and to Jill's shock, Gloria and Jeff Bardwell and Billy Abbott, with the majority of Jabot shares and proxies from Traci and Ashley, announced their takeover. Jack was present, and Jill reminded them that Jack was still legally banned from having anything to do with Jabot. Total confusion about who was in charge was calmed when Ashley Abbott arrived and announced that she was once again the rightful CEO of Jabot.
Cane and Chloe began to get along better in anticipation of their baby. But one day Lily dropped by, and during an argument with Chloe, Chloe fell from a ladder and had to be taken to the hospital. Chloe’s baby was okay, but she was confined to bed-rest. During Chloe’s hospitalization, Billy got a nurse to admit that her due-date was incorrect. Billy realized that he was the father, but said nothing to Chloe.
Billy found out that Lily Winters was trying computer dating, so he posed as a guy online who called himself Sonny Crawford, whom Lily became quite enamored with. They finally met, and Lily was shocked, then thrilled that Sonny turned out to be Billy.
About the time Katherine's book of memoirs Live Until I Die was released in time for Christmas 2008. Kay fell on the ice at Murphy's, hit her head, and when she came to, partial memories began returning. She suddenly declared to Murphy that she was actually Katherine Chancellor. Murph didn't believe her but found the obituary with a photo that looked like Marge and the story of the accident, which had occurred near where he'd found her. Sad that it meant his friend Marge was probably dead instead, he agreed to accompany Kay to the mansion.
Murphy felt uncomfortable at the mansion and left Kay expecting to be welcomed from the daughter she remembered as Jill. But Jill refused to believe Kay, and Kay could not convince Jill with the little bit of memory intact, and Jill called the police, who threw Kay in jail. While visiting his mother Gloria in jail, Kevin met the woman posing as Kay Chancellor. He and Gloria believed her, and Kevin and Jana, joining forces with Amber and Daniel, used Kay's money to bail her out of jail and hired Michael to represent her to prove that she was Katherine.
Meanwhile, Gina's ex-husband Clint got out of prison and returned to Genoa City, plotting to get some of the Chancellor fortune. Clint found out that Katherine was assumed dead, and that Esther had inherited one tenth of one percent of Kay's assets and Kay's half of the mansion. But he also heard the rumor that it was Marge who was killed, and that Kay was trying to convince everyone that she was still alive, so he instructed his cohort, Roger Wilkes, to woo Esther and marry her as fast as possible or he might have to do something to keep Kay from "coming back from the dead." Clint kidnapped Kay just before the DNA proof results were due. Kay told Clint that she remembered kneeing him in the groin after she was freed from the first kidnapping, which convinced Clint that she was Kay and not Marge. Surprisingly, the DNA results between Kay and Jill did not match.
Lily and Billy were getting serious so they went up to the Abbott cabin at Twin Lakes to be alone. But Billy felt he had to confess to Lily about Chloe's baby before going any further. Lily was shocked and accused Billy of plotting with Chloe to break up her and Cane. About that time, Chloe walked in the door of the cabin, and before she could join the conversation, went into labor. Unable to drive out due to a storm, Billy had to turn and deliver his daughter while being talked through it by Olivia on Lily's cell phone. Then Cane showed up after walking in past the roadblocks, intending to tell Lily he loved and wanted her no matter what. The baby was fine, but Chloe was hemorrhaging and passing out, so they constructed a litter and carried her and the baby down to the waiting ambulance.
Later in the hospital, Cane started asking questions about why they were at the cabin, and Lily threatened Billy that he'd better step up, tell Cane and claim his daughter. Billy went off to get drunk in a bar while Chloe almost died from blood loss and septicemia. Billy's brother Jack gave him good advice to fess up, confiscated his car keys, and left. Then Sharon showed up, also drunk, so the two of them hooked up and spent the night together in her room at the Athletic Club. The next day, Chloe confessed to Cane that her baby was not his, and Billy walked in to verify that he was the reluctant father. Cane exploded at them, including Lily for not telling him after she found out the night before. Cane shouted at them all that the baby was his and he was not going to give her up. Later Cane signed the birth certificate naming himself the father and the baby Cordelia Katherine Valentine Ashby.
Chloe admitted to Ester that the baby was not Cane's. Then when Billy showed up, Esther realized he was Cordelia's father. Unknown to them, Cane had contacted Michael to get custody of Cordelia, and Billy contacted Rafe to see what his rights were too. Since Cane was divorcing Chloe and they had nowhere to go, Esther brought Chloe and her granddaughter home to the estate, and Jill offered them space in her wing so she could be closer to her granddaughter. After slugging Billy when he showed up at the estate to see Cordelia, Cane explained the situation to Neil, then asked Lily how she would feel about marrying him and raising Cordelia together. Cane and Lily reunited, and Cane had Chloe served with full custody papers.
Meanwhile Billy, who was supposed to be the doting father living with Chloe and Cordelia, was having an affair with his brother Jack's not-yet-divorced-wife Sharon. Once Cane was free of Chloe by annulment, he asked Lily to marry him, but she refused saying she could not raise Chloe's child because she believed Cordelia belonged with Chloe. But just prior to the hearing, Cane dropped the custody suit so that Cordelia would never grow up without a mother like he had. Lily and Cane became engaged, set the wedding date for May fifteenth, and began working on a baby of their own. Kay offered Cane a job at Chancellor, but instead he chose to get out of the corporate rat-race, bought Billy’s favorite escape, Jimmy's Bar, and hired Mac as a waitress when she came in looking for a job.
Jill informed Billy that she was replacing him with Cane as Jabot CEO due to his lack of maturity, although Billy could still be in charge of Jabot's international sales division, but Billy quit on the spot, and told Jill that she would never see Delia again. Cane was thrilled when Jill told him she was reappointing him to the CEO position at Jabot. Later, Jill fired Jack and Ashley, telling them they were living in the past and unable to embrace new ideas. Jack told Ashley not to worry, once Katherine was proven alive she would reinstate them, and she did.
Cane and Lily were married in the Catholic Church, Lily in her mother’s wedding gown and favorite pin in her hair. Colleen was maid of honor and Devon best man, Katherine read scripture, and Ana sang. Afterward Cane thanked God for giving him a better life. He recalled the phone conversation he had with Langley just after he was proven to be Phillip, but this time the viewers saw Langley – looking exactly like Phillip! Lily and Cane's reception was held at Indigo, decorated by Lily in Parisian style. Jill asked Cane to consider taking the Chancellor name, Kay agreed, saying she always thought of Phillip as her own, and thought of Cane as the same. Amber caught the bouquet and started pestering Daniel to marry her. Lily and Cane spent their honeymoon in a tropical paradise. Lily gave Cane a ticket to Australia as a wedding gift, but he didn’t want to use it, saying he was finally happy with her, he had grow up poor, and there was nothing there he wanted to go back to. Then viewers saw his uncle Langley tending bar in Australia. Nina returned to Genoa City to do a screenplay adaptation of Katherine's memoirs, and was skeptical of Cane's story and questioned him about it. Cane called Langley in Australia saying, "Phillip, your wife is going to find out you're still alive", but Langley told Cane not to worry, that it would lead nowhere and blow over.
Paul discovered that Violet had been in a hospital in Arizona at the time of the baby switch, proving that part of Cane's story to have been a lie, but Jill and Kay refused to believe that Cane was not genuine. Nina was anxious to identify her son's father to find out if he had the gene to confirm or rule out her son’s possible diagnosis of Huntington's disease. When she called the lab to get the remains from the prior exhumation re-examined, she was told they had no remains, nor any record of the exhumation in their files. So she had the body exhumed again, opened the coffin and found it empty. Further tests showed there had never been a body in that coffin, just bags of sand to give it weight.
Meanwhile Cane was frantically trying to contact Langley. Jill reluctantly requested another DNA test, and the viewers saw Cane pull a vial of blood from a freezer of dry ice marked “Langley”. The blood test was done at the Chancellor estate, but Cane distracted everyone while he substituted the blood vials. Everyone but Nina was thrilled that Cane was proven to be Jill’s son. Then Paul delivered more news to Nina; tests showed the blood had been frozen, so Nina confronted Cane asking where he got the blood to pass the test. In front of Kay, Jill, Murphy, Chloe, Neil and Lily, Cane admitted to Nina that he was a fraud, saying it was not for the money, he never wanted to hurt anyone, only meant to heal them, and they had become family to him. When asked how Cane could have done this to the people who gave him nothing but love, Jill’s son Phillip emerged saying that he did it. All were aghast to see Phillip again, still alive! Katherine had another mini-stroke and was rushed to the hospital by ambulance. Murphy, Jill and Nina were with her when Phillip arrived and assured everyone he was very much alive, explaining that at the age of 19 he had found himself overwhelmed with responsibilities as a young executive at Chancellor and as a new father. Phillip, an alcoholic in depression, had attempted suicide by crashing his sports car. When he awoke in the hospital, he paid off a doctor and a policeman to aid in faking his death, then escaped to Australia and began a new life as Langley. Five years prior Cane had come to work for Phillip as a bartender in Phillip’s bar, and they became friends. Cane said he had grown up alone without a family, and he helped Phillip to realize what he had must have put everyone through with his death. So they had concocted the plan to give Jill and Kay a new son in Cane, expecting to make them all happy. Phillip told Nina that he had justified leaving her and their son because he felt they would be better off without him. Meanwhile back at the Chancellor Estate, Lily was crushed that Cane had lied to her for years, Neil told him to stay away from Lily, and Billy arrived in time to punch Cane out. Then Phillip dropped the bomb on Nina, telling her that another reason he had been so desperate to die or to leave was that he was, and is, gay!
Cane sold the bar to Mackenzie and decided to leave town. Thinking she was pregnant and he needed to know, Lily asked Cane to stop by and see her. Hearing Cane say how sorry he was that he messed up her life, was leaving town, and luckily she was not pregnant, Lily decided not to tell him. Cane arrived at the Chancellor Mansion to say goodbye and apologize to Kay and Jill. Phillip tried to get them to stop Cane from leaving, reminding them didn't they love him just a few days ago? But Cane slipped out while they were welcoming Nina's son Phillip IV (now nicknamed Chance) who returned from Iraq unexpectedly finding his supposedly dead father as part of his welcome home. Lily started experiencing pain and Devon rushed her to the hospital. Olivia diagnosed her as not pregnant, but instead a mass was found on her ovary which was cancerous. Lily asked for Cane, Devon and Liv thought it would help, but Neil forbade it. Mackenzie tracked down Cane, persuaded him not to leave town, and stashed him in Murphy's trailer home that Billy had just bought as a rendezvous for them. Lily slipped out of the hospital convinced that harvesting her eggs for future children was more important than her scheduled surgery, but Cane was able to convince Lily to return. After surgery, Olivia delivered the news that they had to do a hysterectomy, but that luckily some eggs were saved.
Katherine told Phillip that what he did to them was unforgivable. But after what Cane did to save Lily by getting her to return and have surgery, she forgave Cane and asked him to stay in Genoa City. Billy was livid that his "fake brother" was once again the favored son and grandson.
It wasn't long before Lily and Cane reconciled and she moved back to their home with him. Cane shared his only remaining secret with Lily, that the “cattle mafia” in Australia stole his friend’s herd one by one, bankrupting him. Cane became a marked man when he identified the rustlers to the authorities, which is why he had to leave Australia. Later Phillip got word that they were making trouble back home in Australia, so he returned to take care of it for Cane, and wind up things with his bar.
Lily decided to take control of her cancer head-on getting Cane to shave her head rather than lose it to the chemo she began taking. Lily felt great after her first treatment, then crashed feeling sick and having hot flashes. Several chemo treatments later and careful as they were, Lily got an infection and was hospitalized. At her worst, Jill was there for Cane whom she still considers a son, and Neil realized how much Cane really loved her. Then as she began to recover they decided to start looking for a surrogate rather than wait until Lily would be strong enough to carry their child. Billy was not happy when Mackenzie volunteered and began looking into the legal ramifications with Michael Baldwin. Mac got a physical, and told Cane she was ready no matter what Billy does not want her to do. Mac and Billy broke up, and Mac became pregnant with Cane and Lily's child.
In December 2009, Malcolm showed up out of the blue in Lily's hospital room as she was fighting another infection cause by her cancer treatments. He explained that he had been on photo shoots in foreign lands, but had received her letter telling him she had married Cane, was aware and heartbroken over Dru's death, and had met Olivia at Heathrow Airport and found out about Lily's cancer. Neil took him to task outside Lily's room for his not keeping in touch, especially with Lily.
The day Malcolm took Lily for a PET scan, Cane was arrested for being in the country illegally. Lily skipped the procedure and met him at the jail where Cane admitted that even though he was married to a citizen, deportation was inevitable since he used Phillip’s identity, masquerading as a US citizen. Cane was found guilty and deported. Lily promised to go with him, but he reminded her about her cancer therapy and babies on the way. Cane was found guilty and ordered deported. Lily promised to go with him, but he reminded her about her cancer therapy and their babies on the way. So when Lily got disappointing results from the PET scan, she lied and told Cane the cancer was gone so he would go ahead without her. But when it was time for Cane to be deported, she broke down and told Cane the truth, so of course he escaped. But just as he was apprehended, Michael saved the day with the news that he had arranged for Cane to stay legally because of Lily’s condition. Lily’s Aunt Olivia finally arrived from Haiti where she was working with Doctors Without Borders and began helping Lily decide on her options to fight the cancer. Shocked to see Malcolm the first time in years, it was realized that Malcolm had not met Liv at Heathrow like he claimed. Neil and Malcolm became at odds again as Neil pressured him for more information, and as each tried to be a doting father to Lily.
A sonogram confirmed that the twins Mac was carrying were boy and girl. Olivia told Lily, Cane, and Mac about a clinical trial that would take amniotic fluid from the babies to give Lily more immunity to fight off the cancer, but both Lily and Mac turned it down fearing it may harm the babies. Instead Lily left for France with Olivia to try another experimental procedure. Cane could not go with her as he would not be allowed back if he left the country. Cane then decided to sue Mac for the right to take the placenta fluid against their wishes. A copy of Lily’s will arrived in the mail shortly after she left where she specified that in the event of Lily's death, she wanted Cane and Mac to have joint custody of the twins. Mac was not sure how to handle the news since she had been trying to distance herself from the babies she carried so as not to get too attached to them, and not so hard to give them up. After Lily’s procedure failed, she returned and took part in the hearing, but when Cane saw her emotions and frailty on the witness stand, he dropped the lawsuit. The next day, Mac went into early labor, the twins Charlie and Matilda (Matty), were born two months premature, and their amniotic fluid was saved for Lily’s treatment. Lily and the twins stayed in the hospital all growing stronger, as she got her treatments. Meanwhile Mac shared with J.T. her guilty regrets and missing the babies.
Lily was released from the hospital and welcomed home by the family who had unpacked all the baby gifts, and had their house all ready for them when they could come home. Cane and Lily visited the babies often, as deportation loomed closer for Cane once she got well. But Sofia saved the day by convincing Tucker to approve Cane as liaison with their corporate partner where Cane grew up in Canberra, Australia. Because Cane was uniquely qualified he obtained an eight month work visa. Cane and Lily eventually brought the twins home, and Lily’s health continued to improve. Lily asked Mac to be Godmother to the twins. When she turned her down explaining that she was getting too attached to them, Lily asked Traci, and she accepted in memory of Colleen. Devon felt honored to be the twin’s Godfather. Just before the twin’s Christening, Immigration demanded that Cane appear for deportation because Lily had gotten well. But the job with Tucker saved him from deportation, and Cane, Lily, Neil, and Michael arrived in time for the Christening. Later at the reception, Phillip returned from Australia and warned Cane that he was still in danger there, and he dared not go back.
Cane and Sofia flew to Australia to meet with the executives in the bio-fuel project, but they stayed on the plane so no one would know Cane was there. Meanwhile at home, Lily received a box of steaks from Australia. Thinking they were from Cane, Neil fired up the grill for Lily, Malcolm, and himself. When Cane arrived home they were fine, but he threw out the steaks, then received a DVD in the mail showing Lily being spied upon at their own front door. Cane eventually had to reveal the threat to Lily after she discovered the DVD.
In mid-October 2010, Cane, Lily, and the twins went to the lake in an attempt to escape Blake Joseph, the Australian who was watching them. Cane decided they should return to Genoa City when a policeman warned them that a tornado was headed their way. As Cane took their things to the car, he was jumped by Blake. They fought as the storm got worse, Cane overpowered Blake, and dragged him into a root cellar. Blake threatened Cane that if he turned him in to the police, Blake would expose the fact that Cane had been one of the cattle rustlers, but had turned on the gang to save himself. Blake offered to leave Cane and his family alone for five million dollars, which he was sure that Katherine and Jill could provide. Before leaving, Blake whacked Cane over the head with a pipe wrench.
J.T. received a call from a panicked Lily, who was hiding from a tornado under a table inside a cottage at the lake, telling him that Cane had disappeared. J.T. left Reed with Mac and drove up to the lake to help. J.T. left Reed with Mac and drove up to the lake to help. Cane made his way back to the cottage covered in blood and told Lily he never found the guy but had been hit by debris. Later, as Mac sang a lullaby to Reed, the tornado caught J.T. on the road and caused him to crash into a power pole. The pole and power lines fell on the car as J.T. climbed out into the rain, electrocuting him. Cane and Lily discovered J.T. unconscious in his wrecked car on the drive home. With no cell phone service, Lily went to a gas station they had just passed to call an ambulance. Cane removed the power lines from the car with a tree branch and pulled J.T. out, finding no heartbeat. J.T. had a “walking into the light” experience, but Cane brought him back with artificial resuscitation, and J.T. awoke gasping for breath. Later at the hospital, Cane checked out fine and was uncomfortable when Lily called him a hero. J.T. recovered and his burns began to heal after several days in intensive care, but he had extensive heart damage due to the electrical current which would keep him from doing anything strenuous or stressful.
Needing money to pay off Blake Joseph, one of the cattle rustlers who had been after Cane in Australia, Cane checked the Internet for how to take on a new identity. Cane located the name of a dead person named James Collier and ordered a copy of his birth certificate. Cane presented Sofia with a resume for James Collier and convinced her to hire him sight unseen, intending to do Collier’s work himself. Cane opened an account in the James Collier name, arranged direct deposit of his pay check, and gave Blake the information so he could withdraw the funds as payment of the blackmail. Lily walked in on them making the deal, but Blake told her he was an old friend from Australia, there to tell Cane that his problems were over and he was free of the rustlers. Tucker became suspicious of Collier, and requested Cane deliver some files to Collier to present a report on them, along with a face-to-face meeting with Tucker, due the following day. Cane stayed up all night working on the report. As Cane was making excuses for Collier’s absence to Tucker, Blake showed up claiming to be Collier. To make things easier, Blake told Tucker that he went by the name Blake rather than James. After they both had left, Tucker confided in Neil that he still did not trust Collier, and woe to Cane if Collier was not what he claimed to be.
Cane was soon overwhelmed by staying up all night to perform both his own work as well as Collier’s, which caused Sofia to become suspicious, and Lily became overtaxed handling the twins on her own. Then Cane was invited to dinner by Jill, the woman he thought of as his mother, to meet a new man in her life who was also Australian. Cane was shocked when the man turned out to be his own father, Colin Atkinson. When the two men were alone, Colin said that he would forgive Cane for ratting him out and sending him to prison, if Cane would come back and take his rightful place in the family organized crime business in Australia. Colin reminded Cane that he came from a wealthy family, not poor and parentless as he claimed, then showed him a photo of his younger sister Samantha. Cane reminded Colin that he had ruined her life and that she had been murdered because of him. Colin threatened Cane that he would use Cane’s secrets to persuade him to return, saying that Katherine Chancellor should know that Cane was embezzling money from Tucker, and Jill that he was Colin’s son. Cane refused and told him to stay away from Jill and his family. But like Blake had ingratiated himself to Lily, Colin got close to Jill and they became lovers that same evening.
The time came when Blake was assigned a project that Cane was not expert enough to handle, and Sofia and Neil were ready to fire Blake. But Sofia got Cane to admit that Blake was a fraud, and after hearing the story behind it, she agreed to help him get the blackmailers paid off to protect his family from harm. Colin put more pressure on Cane by asking Jill to marry him, and she accepted. Tucker discovered that Blake was a fraud. He called in Sofia, and when she tried to explain, he fired her and Cane.
Meanwhile Cane saw things coming to a head and confessed to Lily that Blake was sent from Australia to blackmail him about his past, and that he had been part of an organized crime family involved in illegal activities. Cane explained that when they caused the death of his sister Samantha it made him decide to turn on them, and then he met Phillip Chancellor who gave him the opportunity to escape to Genoa City and start over. Lily did not take it well and kicked Cane out. Sofia confessed her part in the hoax to Malcolm, then Neil, saying that she only wanted to help Cane who was a good man in a rough place. Both men were mad at Sofia, and left her there while they went to help Lily pick up the pieces.
Sofia went to Tucker again and got him to listen to her explanation. She reminded Tucker how he had saved her father’s job as an economics professor, and said that she felt that she had been “paying it forward” by helping Cane. Tucker relented and told Sofia that he expected her to cooperate with the police or face embezzlement charges with the rest of them. Sofia had it out with Blake at Jimmie’s, and he later tried to run her down with his motorcycle as she left. Colin ordered Blake to go home to Brisbane, but asked him for one last favor before he left; to keep Cane from interrupting his wedding to Jill. Before Blake left for the church, he got a text message from someone called “Rippley” tipping him that Colin was not to be trusted and was setting him up if he returned to Australia.
Cane went home to tell Lily the truth about him and his father, but she was at the church waiting for him, ready to forgive him. So Cane wrote a note for Lily and made a video for the kids, just in case he never saw them again. As Jill and Colin said their vows, Cane walked up the steps of the church, followed by Blake. Lily walked out the front door and saw them fighting. Blake turned the gun on Lily to stop Cane, but Cane jumped Blake to protect his family. The gun went off shooting Cane in the chest, and Blake fell down the steps, breaking his neck and died as he landed. Lily slipped on the ice, and the twin’s carriage went careening down the steps, but Neil arrived in time to catch it and save the twins. Cane lay on the steps bleeding as Jill and Colin walked out of the church married. Lily and Jill cradled Cane’s body and begged him to hold on as Neil called 9-1-1. Colin looked dazed as he watched his son dying. Lily told Cane she forgave him and loved him, and Cane breathed his last breath telling Lily that he loved her. The paramedics arrived, but they could not revive Cane.
Malcolm and Sofia arrived at the church and took the babies home, and when they walked into the house, a gust of wind blew Cane’s note between the furniture and the wall. Neil took a sobbing Lily into the church to talk. Jill and Colin went home to the Chancellor estate covered in blood, and told Kay, Murphy, and Billy that Cane was dead. Billy went to console Lily, and promised her that he would write an article on Cane’s heroism. While Kay and Jill hugged and commiserated their loss, Colin went to the morgue to identify the body. He apologized to his son, saying that because of him, both his son and his daughter had been gunned down in the street. Colin promised Cane that his children would be spared from his destructive life. Lily arrived at the morgue to say her final goodbye to Cane.
Cane's funeral was held on his and Lily's beloved Valentine's Day. Phillip, Kay, and Jill made touching speeches, and mourners placed a rose on his coffin as they left. Lily kept seeing and talking with Cane at his funeral, then again at home where she made peace with him, making sure that he knew that she still loved him despite all the lies. While everyone else thought that Lily was going crazy, Traci understood and had a conversation with Lily about coping with the loss of someone you love. Cane continued to haunt Lily, but began to creep her out rather than the peace that his presence had originally given her.
Increasingly concerned about her visions of her dead husband Cane, and after she began finding mementoes he seemed to be leaving for her, Lily consulted a psychiatrist and a psychic. Cane showed himself to Lily at his grave. He told her that he was not alive, but although he didn't understand it himself, he knew that he would be with Lily forever. Lily was able to touch and feel Cane, but he fled when he heard Colin and Jill approach. Lily began going to the cemetery more often to see Cane. Later when Cane showed up at Lily's apartment, Colin could not see him, yet Lily and the twins could. Cane told Lily, that he couldn't explain it.
The next day, Colin met Cane in the park calling Cane "Caleb", who was Cane's evil twin, and Colin admitted that he had planned the gunning down of Cane on the church steps. They discussed their plan to convince everyone that Lily was insane, so that they could return to Australia with the twins. The next time Cane and Lily met, Cane got amorous with Lily, she pushed him away. Lily decided she needed to start living in reality to be there for her kids, and checked herself into Fairview sanitarium.
Meanwhile "Caleb" met with his mother, Genevieve, who reminded him that she was in charge, as she recalled witnessing Caleb shoot at Cane years ago, but Samantha had been killed instead. Genevieve revealed that Caleb, after drugging Cane, had taken his place and showed up at the church. But Colin had arranged for Cane to be gunned down, not realizing that Caleb was the one who was killed on the church steps. Genevieve had found Cane, and he let everyone believe that Cane was dead, and began working with Genevieve plotting to have Colin be arrested for kidnapping the twins to finally get some justice for Samantha.
After bidding Jill a passionate farewell telling her he was leaving town on business, Colin managed to convince Neil to allow him and Jill to take the twins for the night, but instead he took them to the McMillan estate where a plane was to pick up him, "Caleb", and the twins to leave for Australia. Jill got suspicious and followed him to the estate. Meanwhile Neil found the note that Cane had left for Lily the night of his "death" which admitted that Colin was his father and that he had a twin named Caleb. Neil called Jill and explained, and she told him where she was and that Colin had the twins on an airstrip. Stalling for time while Neil called the police, Jill confronted Colin. Cane walked up, and Jill pretended to faint at the sight of him. Jill listened to them talk of their plan, then accused Colin of using her, before she ran off into the woods.
Colin was lured into the mansion by music that he recognized, where he found Samantha's urn on the mantel and a chalk outline on the floor covered in photos of her. Colin called out, and Genevieve appeared telling him that she was there for revenge and justice. She shoved him during their argument, and Colin fell over the balcony. Jill arrived and tried to rescue Colin who was holding on to the edge by his hands. As Genevieve told Jill that she was Colin's wife, Colin lost his grip and fell. The police and an ambulance arrived, and they took Colin to the hospital.
Lily arrived with Daniel, and Neil held her back as Cane jumped the pilot before he could take off with the twins in the plane. The pilot dropped his cigarette which ignited leaking gasoline, but Cane subdued the pilot and drove the stroller into the woods just in time. Cane convinced Lily that he was her husband with things that only he would know. Finally Lily believed him, but feeling betrayed she refused to forgive him. Colin was quickly freed when he was given diplomatic immunity, but both he and Cane were continually rebuffed by Jill, Katherine, and Lily as they told him to get out of their lives. Lily then had a restraining order served against Colin. Cane went back to work bartending at Jimmy's Bar. After repeated efforts by Cane to get Lily to forgive him, Lily told Cane that she was filing for divorce.
Daniel began spending more and more time with Lily and began to fall in love with her again. Lily decided to make love to Daniel as his birthday gift, but Lily kept thinking of Cane instead during it, and called it off. But the next night she showed up at Daniel's door, and they made love. But just as Daniel was thinking they were a couple again, Cane gave Lily the signed divorce papers and announced that he was returning to Australia. Lily gave in and stopped him from leaving, and began allowing Cane supervised visitation of their twins.
After Jill arranged for Genevieve to go on a month long business trip in Jill's place, Genevieve locked Colin in her wine cellar. Trapped alone without even his cell phone to call for help, Colin found an electrical panel and managed to set off the alarm. The alarm company called Gloria since she was their last contact as the realtor. Gloria found Colin, but she let the door slam behind her, locking herself inside with Colin; and being underground, her cell phone got no service. Colin and Gloria found a secret room that appeared to have been a speakeasy. Then after Gloria passed out drunk sampling the wine, Colin found a vault containing a book that listed all his bank accounts. Later a note was slipped though the door that said that Genevieve had trapped him there while she was emptying out his bank accounts.
Paul discovered that Colin had not used his airline ticket. Cane guessed that Genevieve had trapped Colin in the wine cellar, he took Jill there, and they let Colin and Gloria out. As Colin checked his drained bank accounts, Cane met with Ronan about getting evidence against Colin to get him sent back to prison. Cane went back to the cellar, found the vault and blew it open, finding the bank records which he turned over to Ronan. Ronan turned Colin's books over to the FBI to try to decipher their code. Meanwhile Colin discovered that Genevieve had been transferring money from his secret bank accounts. Jill asked Colin to move back in with her at the Chancellor estate. The first call on the FBI wiretap of Colin's phone, overheard him putting a hit on Genevieve and Gloria. Colin arranged for the women to be at Genevieve's mansion later in the day, but they were not there when Lily arrived. Cane rescued Lily just as the mansion exploded.
Ronan and Chance met them outside. Chance had been reassigned by the state department to work with Ronan on the case due to Colin's drug trade in the Middle East. Cane admitted that he had been working with them too, attempting to get Colin put back into prison. Meanwhile Jill, after overhearing Colin's suspicious phone call and being warned by Cane, coaxed Colin to bed and handcuffed him, then called the police. Genevieve's maid, Myrna, had been in the house and was hospitalized with severe burns. Ronan arrived at Colin's suite and arrested Colin for money laundering, drug trafficking, and suspicion of murder. Colin's diplomatic immunity no longer got him off since they had discovered that his ambassadorship was phony. Genevieve turned over Colin's books, and Colin was deported. Lily called Cane her hero, and they reunited.
Billy convinced Cane to help him clear his name so that Billy could get his life back by finding Chelsea Lawson, a girl Billy had gotten in trouble with in Myanmar. Cane asked Ronan to help, but authorities in Myanmar had nothing on her or Billy. Billy came to the conclusion that Victor either had him locked up or paid someone off to say he had not been. After Cane agreed to go to Myanmar, Billy read an article online about innocent westerners being targeted there who were accused of crimes and imprisoned, but Cane would not be deterred. Ronan got Cane a visa, and Billy promised to send Cane a photo once he stole it from Victor. Cane had to say goodbye to Lily, and let her know that this secret was not about him but to protect someone he was trying to help. Lily agreed to trust and wait for him, but was worried about his safety. Billy convinced Kevin to help him hack into Victor's computer, they retrieved the photo of Chelsea, and sent it to Cane to track her down. Chloe called Kevin to let him know that Delia was in remission, and Kevin shared the good news with Billy. After Kevin had left, Victor tracked Billy to his hiding place and informed him he would personally see to it that Billy left for good this time.
Meanwhile in Myanmar, Cane was asking a bartender about Chelsea, and later received the photo which was of the bartender. The owner of the bar later told Cane that she had taken money from the till and disappeared. Victoria became convinced that Billy was in trouble and unable to contact them, so she and Jill decided to go to Myanmar and find him themselves. Inquiries and bribes at the American consulate disclosed that Billy had been imprisoned for illegal drug trafficking, but was there no longer. Then a guy at a bar told them that Billy was in hiding, to follow him to the dock in back, where he attempted to abduct them, but they were rescued by Cane. Cane told Jill and Victoria that he had followed them there, and they boarded a plane back to the U.S. together. Victoria got bumped from her connecting flight from New York City, and Cane and Jill went on ahead. Cane assured Jill that Billy was alive and well. Cane returned in time for Devon, Lily, and Cane with the twins to spend Thanksgiving at Neil's, where Neil and Sofia announced their engagement.
After running into Genevieve grieving on her dead daughter Samantha's birthday, Cane and Lily brought the twins over and reconciled with Genevieve. As Cane and Lily stood up for Neil and Sofia at their wedding, they both wistfully reflected back to their own wedding.
Cane objected when Genevieve told him about her impending marriage to Jack. Although concerned that she hadn't known Jack that long, Cane gave her his blessing.
Cane enjoyed Christmas Eve with Lily and the kids. Lily invited him to spend the night on the couch to be there in the morning for the twins' Christmas. They went out together to Gloworm on New Year's Eve, but decided that the party and meal was too fancy for them, and left for home to celebrate there instead.
It wasn't long before Cane and Lily decided to remarry, and they joyfully gathered their family in the park to announce the wedding date would be Valentines Day -- everyone, but Genevieve, whom Cane had disowned after she screwed Jack over when she bought Beauty of Nature out from under him. Malcolm sent flowers, and Devon and Neil gave their blessings. Traci gave Lily Colleen's bracelet, and Olivia gave her Dru's comb which Lily had worn in her hair at their first wedding. But the day before their small wedding, Katherine surprised them by moving the wedding to a friend's villa in Provence, France, and flying friends and family there in her private jet. Katherine stayed home for Delia's birthday party. The wedding was held on the beautiful grounds of the villa with Abby as maid of honor, Devon as best man, and Neil giving away the bride. Cane sweetly told Jill that she was the mother of the groom, the only mother he had ever truly loved. The vows were spoken informally about second chances, and they exchanged both their old and new rings. Afterward, a reception was held in the garden, while Genevieve tearfully watched from afar, and was only spotted by Jill, who didn’t tell anyone.
On their return, Jill and Ashley asked Cane to become Jill's assistant director of marketing at Jabot, and Cane accepted. He turned out to be invaluable in keeping peace between Ashley and Jill, as Ashley was stressed out over handling the company without Jack who had been paralyzed. Both Jabot and Beauty of Nature became focused on getting an exclusive deal with Mitsukoshi, the largest department store chain in Japan, so Jill traveled to Japan. So did Cane, Genevieve and Victor.
During their meeting in Japan, Genevieve searched Victor's briefcase while he had stepped out, and she found a business card for Kaito Yoshida of Oshiro Holdings. Believing she had discovered Victor's contact in Japan, she called to meet him. Jill and Cane were to meet with the same man, supposedly a Mitsukoshi major stockholder. But Jack called and tipped them that the man was actually the U.S. government agent who had investigated Newman and caught them making bribes. They did not show up for the meeting, but when Cane spotted Genevieve with the man, he interrupted them and got Genevieve out of there before she could be tricked into making a bribe. Nick and Sharon arrived, and Sharon met with Mr. Mitsukoshi himself and secured the exclusive rights for Newman because of their prior relationship when she had been the Beauty of Nature spokesperson. Eventually it became clear to Genevieve that Victor had set her up, and thanked Cane for rescuing her.
The Department of Justice began investigating Genevieve for illegal activities, so Victor made a deal with her to keep her out of prison, if she would help him to keep Beauty of Nature. Then a judge ruled that Adam's sale of Beauty of Nature had been legal and ruled against Genevieve's motion to dismiss Jack's lawsuit, and Victor later lost Beauty of Nature to Jack when Jack won the lawsuit. Genevieve refused to open her books to Christine Blair and the Department of Justice. Christine wanted Cane to help bring down his mother and threatened deportation if he didn’t, and Cane was subpoenaed as a grand jury witness against her. When Genevieve found out, she decided to turn herself in rather than destroy Cane's life. Genevieve cut a deal with Christine, admitting that she had used Colin's mob money to buy Beauty of Nature, so Genevieve's assets were confiscated, leaving her penniless. But unknown to the Feds, she had a Swiss bank account, and began living at the athletic club. Concerned that her account was being drained, Genevieve promised Kevin a lot of money to hack in and discover where it was going. He confided in Chloe, and Chloe told Cane who confronted Genevieve about getting Kevin in trouble. Genevieve admitted to Cane and Lily that Colin was out of prison, and she was convinced that he was the culprit.
On June 27, 2012, a party was held by Lily and Cane at the athletic club to celebrate the second birthday of the Ashby twins. Despite their differences, the whole family showed up with presents, including Neil, Sofia, Devon, Genevieve, and Harmony. Ana showed up as a surprise, and taking him aside, suggested that Devon forgive his mother for not being perfect just as she had. Devon decided she was right, and they all enjoyed the party and Ana's visit. A mysterious gift of an antique doll and car was opened which turned out to have been the favorite toys of Cane and his deceased sister Samantha. Cane and Genevieve were not pleased, thinking that they had apparently come from Colin. But after Cane received email on his cell referring to Claude and Shirl, the secret names he and Samantha called each other as children which Colin nor anyone else knew about, then the arrival of an envelope full of French francs, the mystery deepened.
Cane hired Kevin to find out who had emptied Genevieve's Swiss bank account. The firewall was mysteriously gone, and Kevin had no trouble discovering the balance had been transferred to an account of "Claude Shirl". Then Genevieve's suite was ransacked, a photo of the family from when Cane was a child and a Gloworm matchbook left behind.
After Jill left Genoa City for Australia to care for Phillip who had just had knee surgery, Cane was made interim head of marketing. Cane confronted "Claud Shirl" when he showed up at Gloworm, but he turned out to be an actor hired to play the part. When Cane set up an appointment to interview a woman for his old assistant director of marketing job, he found a note she had left for him, signed "from your sister." Lily finally confided in Ronan about the stalking, and being afraid for their kids.
After another note was left for Cane, this time from a woman calling herself Shirl Claud, he arranged a staged evacuation of the athletic club to flush her out. She claimed that Genevieve had been paying her to torment Cane. Genevieve tried offering her money to tell who was really behind it. The woman refused, but reacted when Genevieve mentioned Colin's name. When Genevieve told Cane, he said he didn't care, and that it was the last time Genevieve would ruin his life, and Cane accused Genevieve's treatment of Jack for causing Cane to lose a promotion to CEO of Jabot. Genevieve went to Shirl's room after receiving a phone call invitation, finding the room in a shambles and blood on the floor. She went to Cane for help, and they brought back the police. But when Genevieve became a suspect in the woman's disappearance, and a body was found in an alley nearby, Genevieve confided in Tucker that she was leaving town and disappearing.
After gaining Adam's share support and teaming up with Tucker, Jack took the opportunity for a hostile takeover of Newman Enterprises. He offered Neil Winters the job of CEO of Jabot. After accepting, Neil made Lily head of the Jabot marketing team, made Cane his right hand man, and hired Devon as a marketing intern. Tyler Michaelson, a successful graphic designer who wanted a job at Jabot, made a pitch to Neil and Jack, and Tyler was hired to work for Cane in marketing. But Cane became jealous because Tyler kept flirting with Lily. After Jack had a meltdown and fired Phyllis, Neil, and Kyle, Cane was made acting CEO. His first task was to fire Tyler, but Lily later convinced Cane to give Tyler another shot. Cane also let Neil know that as CEO of Jabot, he was putting Neil in charge without the title for the sake of Jabot. Neil had no more than taken up the reigns of Jabot again when Jack realized that his heart was with Jabot, not Newman, and left Newman in Adam's hands. When putting together his team to run Jabot, Jack hired Billy and Kyle, and Neil was made head of the new fashion division with Cane and Lily under him.
Cane began spending a lot of time with Chelsea, encouraging her that she could rise above her past as he had, and follow her dreams in fashion design. After Tyler and Lily became trapped in an elevator together, then marooned in a dead car in a snowstorm, he got very jealous and accused Lily of fooling around on him. The next time Tyler came on to Lily, she set him straight that they were merely co-workers, and to stop. Cane and Lily finally agreed for the sake of their marriage that he would cut his ties with Chelsea, and Lily hers with Tyler.
Cane finally realized that Katherine was having memory problems and coaxed Katherine to see a doctor. Rather than Alzheimer's as she feared, she was diagnosed with a brain tumor. Although he tried to persuade her to tell her loved ones, Katherine swore Cane to secrecy, allowing him to tell only Lily.
Katherine went in for her surgery to remove the tumor and have it biopsied. Jill and Murphy showed up out of the blue, and offered to call Brock, Devon, Nina and Esther. Before her surgery Katherine asked Cane to run Chancellor if something happened to her, and he agreed. With good news that the tumor had been benign, Devon, Murphy, Cane, and Jill assembled around Katherine's hospital bed until she finally awakened, feisty as ever. She announced that she was stepping down as CEO, and named Cane as her successor. Katherine went home from the hospital on her anniversary, and was surprised by the family with champagne and cake. Left alone with Jill, they had a heart to heart about Jill being overlooked for Cane, then Katherine weakly ascended the stairs to bed, refusing Jill's help.
Jill and Cane made peace, and Cane convinced her to come back to Chancellor and run the BioTech (medical research) Division.
Tyler decided that he was getting too attracted to Lily, so he quit Jabot. Lily told him it was too late to replace him and the campaign to succeed, so Lily dropped out so that Tyler could continue the project, and Devon took over heading the campaign. When Lily arrived home drunk to a surprise birthday party on the arm of Tyler, everyone became suspicious of their relationship. Tyler went to Neil and gave him attitude about Devon's handling of his campaign, so Neil fired Tyler.
Cane interviewed for a new assistant, and after several duds, with Lily's approval, he hired Hilary Curtis, a bright young woman who was well-informed about Chancellor, Cane, and Lily. Jill tried to bribe Hilary into passing some of Cane's work off to her, but Hilary told Cane about it instead. Jill explained to Cane that she was only trying to give Cane and Lily more time, not making a power play. But as Hilary made herself more and more indispensible to Cane, Lily realized that she was after her man. When Cane refused to believe it, they staged a fight in front of Hilary, and after Lily left, Hilary kissed Cane. Cane was convinced, and Lily finally figured out that Hilary was actually Ann Turner who was looking for revenge against Lily's father Neil.
Katherine and Murphy took a trip around the world, with Katherine sending postcards but uncharacteristically not keeping abreast on Chancellor. Three months later Jill, Victor and Nikki, Cane and Lily, Esther, Chloe, Devon, and Kevin gathered in the Chancellor living room having each received instructions by mysterious postcards from Katherine which arrived from locations around the world. Murphy finally arrived alone and told them what an exhilarating trip they had taken, hitting all the famous locations on Katherine's "bucket list". He said that their final stop had been Hong Kong where they met up with Tucker for dinner, which was cordial, almost pleasant. Afterward Murphy and Katherine had sung together in a karaoke bar and gotten a standing ovation, but later that same night Katherine had died in her sleep. Everyone was shocked and saddened by the news. Murphy admitted that the doctors had told Katherine that she did not have long live, so she had decided to take the trip. Murphy asked everyone to forgive her and to remember the love and special moments that she had shared with each of them. As each of them had their own memory, Cane and Lily recalled Katherine officiating at their wedding. Murphy later delivered letters from Katherine to each of her loved ones. Per Katherine's instructions, Jill and Nikki arranged a celebration of life to be held in a park at Lake Delaney, which had been renamed Chancellor Park in her memory. Days later when Katherine's will was read, Cane was bequeathed the management of the Chancellor Corporation. But ownership of the corporation was to remain confidential.
Cane played up to Hillary and invited her to his room at the athletic club. Hillary spiked his drink, and staged a scene making it appear that she and Cane had just had sex together. But Cane faked being passed out, and he recorded everything, including Mason helping Hillary by taking the photo and admitting he had taken the prior ones. Later after the photo hit the GCBuzz, Cane played the recording for Lily, and they told Neil. Cane fired Hilary, but Neil refused to press charges, and tried to apologize to Hilary instead. But after Leslie gave Hilary the letters that Gus had written to Hilary's mother Rose, she backed down and apologized for coming after the Winters family. The rest of the family was shocked when Neil believed her and gave her a second chance at life and a job working as Jack Abbott's assistant.
After Victor revealed that he was the new owner of Chancellor, Victor held a meeting with Cane. Despite the fact that Katherine had willed Cane the CEO position, it became evident in their conversation that Victor was only willing to give him a lesser job, so Cane quit.
Jobless and looking for a new direction for himself and Lily, Cane found an abandoned building and took Lily there to see if they could up with a plan for it.