Genoa City's own rock star Danny Romalotti appeared on Broadway in Joseph and the Amazing Technicolor Dreamcoat. While away in New York City, Danny was stalked by obsessed fan, Phyllis Summers. Phyllis was then 20 years old, and a data entry clerk at a DNA lab in New York City. She drugged his drink, got him into her bed, and later claimed to be pregnant by him. Danny divorced his estranged wife "Cricket" (Christine) and joined Phyllis in a trial marriage to "do the right thing" for the child. Danny returned to Genoa City alone, but the pregnant Phyllis soon followed.
Christine had been digging up dirt on Phyllis to convince Danny how manipulative his new wife was. Phyllis outsmarted her though by convincing her former DNA lab co-worker Sasha Green to alter the records of Daniel's paternity. Eventually Phyllis' manipulations caught up with her, and Danny filed for divorce. Phyllis, convinced that without "Cricket" Danny would love her, decided to kill "The Bug," as Phyllis called her. Phyllis rented a car, and ran down Paul and Christine on what was supposed to be their wedding day. Paul jumped in front of the car to save Chris, and he was severely injured. Phyllis got away without being seen, and no one even suspected that she had been the hit and run driver.
Phyllis' parents, Lydia and George Summers, paid her an unexpected visit in 1995. Phyllis had had no contact with them since she left home in her late teens, leaving behind her younger sister who idolized her. It was obvious that there was no love lost between them. Still a major disappointment to her family, still badgered by them to be something other than herself, Phyllis finally got them to leave town without anyone knowing of their existence.
At Danny and Phyllis' divorce hearing the judge postponed a decision until after marriage counseling. Phyllis disclosed to their psychiatrist, Dr. Tim Reid, that her insecurities stemmed from the fact that she was not the perfect blond haired blue eyed little girl her parents wanted her to be, but was a chubby red-haired freckled tomboy, and a major disappointment to them. Dr. Tim was an insecure, small, mousey, bald man, but he was very endearing. Sensing that Dr. Tim was attracted to her, sexy Phyllis seduced him. On the day that Tim intended to testify that he felt Danny and Phyllis should divorce, Phyllis blackmailed him with a videotape of their lovemaking. So instead Tim testified on Phyllis' behalf that her marriage to Danny had a chance. But he later recanted his testimony, and the judge declined to censure him. Phyllis finally accepted the inevitable, and her divorce from Danny was finalized.
To make Danny jealous, Phyllis became involved with Dr. Tim, but didn't reveal her lover's identity to Danny. Tim began wearing a toupee for Phyllis, but she would throw it off when they made love saying he didn’t need it. When Tim proposed marriage, Phyllis accepted. Paul and Christine were finally married. In a renewed effort to "get The Bug", Phyllis got Tim to accompany her and followed the newlyweds and bedeviled them on their Caribbean honeymoon with tricks like placing an eel in their bed.
Phyllis' toddler son, Daniel, became seriously ill with bacterial meningitis and was hospitalized for several weeks. While Phyllis and Danny held vigil by his bedside, they became close. Phyllis broke it off with Dr. Tim. During this time Danny saw Phyllis in a new light and asked her to remarry him.
Two years after the hit and run by Phyllis, she overheard a phone conversation that led her to believe that the police had discovered that she was the driver. She panicked and went to Dr. Tim, demanding that he run away with her. Tim was unable to get her to tell him what she had done, but he convinced her that she needed to face her past and tell Paul and Christine whatever it was. Tim accompanied Phyllis to Paul's office, but once they faced the couple, it became obvious to Phyllis through their conversation that they knew nothing about her part in the hit and run. So Phyllis and Tim left, leaving Paul, Chris, and Tim very confused. Paul and Christine told Danny about the bazaar incident, and he questioned Phyllis, but got nowhere. Paul later questioned Tim about it, but Tim said he didn’t know what that was about either and assured him that Danny was a lucky man to have Phyllis, admitting that he loved her, but he knew that she only had eyes for Danny. Danny and Phyllis were married, and Paul and Christine stood up for them. At the reception, Phyllis told everyone that she had made a lot of mistakes, but thanks to her loving, forgiving husband, Danny, she is a new person.
Phyllis and Danny finally were happy together with their son when Sasha Green showed up. Sasha had been dumped by Peter, the man Phyllis had paid to keep her happy and quiet about Daniel's paternity, and was now demanding $30,000 to keep mum about it. When Phyllis refused, Sasha went to Christine asking for $50,000. Phyllis hocked everything she had including her engagement ring, then finally got a loan from Dr. Tim for the $20,000 she still needed to pay off Sasha. Tim told Phyllis that it was all the money he had, but he loved her, and would do anything for her. As insurance, Sasha distributed copies of her manuscript detailing Phyllis' scheme against Danny, but Phyllis managed to intercept them all. Phyllis confronted Sasha in her hotel room, demanding to know if Sasha had sold her manuscript to the tabloids or made a deal with Christine. Phyllis slapped Sasha and she fell on the couch looking afraid. Phyllis said, “I will not let you…” The next time viewers saw Sasha, she was alone, lying passed out face-down on the bed clutching a piece of paper with the heading National Inquisitor. Smoke billowed out from under the bed and became a red glow. Paul and Chris arrived in the lobby later as Sasha was pronounced dead. Phyllis arrived at Malcolm’s photo studio a wreck, saying, “Oh God, Malcolm, I can’t believe what I just did.” Phyllis, when questioned, claimed that Sasha had been fine when she left, and the fire was judged accidental since Sasha had been a known careless smoker and heavy drinker.
Chris and Paul were able to plant enough doubt in Danny's mind that he had a blood test done on Daniel. Danny was devastated to discover that their son was really the child of a man in Phyllis' past named Brian Hamilton, and that she had set him up all along. A vicious divorce and custody battle ensued, with Christine as Danny's lawyer, and the recently paroled Michael Baldwin assisting Phyllis' legal council. Phyllis and Michael began a wild affair. With the help of Brian Hamilton, all of Phyllis' lies and manipulations were brought out in court - including the fact that Danny had been drugged that first time and had never even had sex with Phyllis as she claimed. The court found her to be unstable and an unfit mother. Danny won custody of Daniel, whom he still considered his son. Although Phyllis was allowed visitation, it wasn't long before rock star Danny left with the toddler for a European tour. Danny coerced Phyllis into agreeing that it was not in Daniel's best interest for Phyllis to stay in contact with them.
Phyllis, now single and needing an income, answered an ad for a job and met photographer Malcolm Winters. They had a great rapport, and maintained a flirty relationship as close friends sharing their love life woes. Phyllis moved in with Michael Baldwin. She and Michael remained lovers until Phyllis got jealous over his increasing involvement with Diane Jenkins. Michael was merely representing her in her divorce from Victor Newman, but Phyllis was forever insecure. Michael suddenly disappeared. After being held captive in a mysterious location, Michael returned to Genoa City and blamed Victor for his abduction. In a weak moment, Phyllis admitted that she had arranged the abduction to teach Michael a lesson. Michael kicked her out, but later took back the sexy and seductive Phyllis.
Phyllis then hooked up with Victor Newman as part of a scheme to spy on Jack, Brad, and Michael in Victor's attempt to get his company back from their clutches. Phyllis interviewed for a job with Jack and ended up seducing him. Several bits of inside information later, Jack discovered that Phyllis was spying on him and broke off their affair, and Phyllis returned to New York City.
Phyllis resurfaced again three years later, returning to Genoa City as an accomplished web designer. Jabot Cosmetics was desperate for a web designer in their efforts to compete with Newman's 'Brass & Sassy' and to Phyllis' surprise, Jack hired her for the job. Phyllis made the 'Glo by Jabot' website a hit, and helped Jabot rebuild their depleted finances. When the summer campaign was over, Jack put off renewing Phyllis' contract, letting Victoria Newman snap her up for 'Brash & Sassy' instead. Phyllis and Malcolm began dating and she helped him get the 'Brash & Sassy' photography contract.
Phyllis' boss Victoria Newman suggested she renew her friendship with Jack to spy on Jabot, and about the same time Jack began romancing Phyllis to spy on Newman. But instead, Jack and Phyllis ended up falling head over heels in love. Phyllis loved Jack, but when the subject of marriage came up, Phyllis had reservations, knowing how much Jack wanted children. Since her child, Daniel, had been legally taken away from her, she had come to believe the charges of unfit mother were true. Jack's love helped her realize that she was a changed woman, and any child conceived by them would be with totally different circumstances than those of Daniel. Not long afterward, Phyllis was rushed to the hospital with an ectopic pregnancy. Not only did she lose the baby, but the chances of her having another were nil due to the tubal damage. Now unable to give him children at all, she again backed away from Jack. After some deep soul-searching, Jack decided that he'd rather have Phyllis, and wooed her back to him once again. They became engaged and Phyllis secretly researched in vitro fertilization. The chemistry between Jack and Phyllis was so electric that even Ashley and the rest of the Abbotts welcomed Phyllis as Jack's new wife on Christmas Eve 2001. Phyllis underwent hormone therapy prior to in vitro fertilization, but couldn't handle it and nearly died.
The discovery that Diane Jenkins' baby, Kyle, was fathered by Jack's stored sperm was the turning point for the happy couple when Nikki finally disclosed to Jack he already had the baby he'd always wanted to raise in Kyle. Phyllis was torn between supporting Jack as he sued for sole custody of his son, and wanting the scheming Diane out of their lives. Phyllis went to her friend and former lover Michael Baldwin, for help, but she refused his suggestion to throw the case by her testimony. Diane also went to Michael to represent her on the case. Torn between two friends, Michael decided to bow out and let female lawyer Sydney handle the case. Once Phyllis was on the witness stand though, Michael knew he had to take over the questioning and save both of his friends. He badgered Phyllis about her former life and being declared an unfit mother until she broke down and blew the case. Phyllis was furious with Michael when Jack lost custody, but Diane would keep her child, and Phyllis would be free from Diane. But Diane, plotting to get Jack by using Kyle, moved into the Abbott pool house. Phyllis and Diane began playing tricks on each other; Phyllis made sure the pipes broke and flooded the guest room when Diane threatened to move inside the house, and Diane assured her stay in the pool house with a broken leg by jumping behind Phyllis' SUV as Phyllis backed up. Phyllis walked out when Jack wouldn't take her side, but she returned with new ground rules to which Jack agreed; Diane must not enter the main house, and Jack and Phyllis would spend time with Kyle together, without Diane.
Then the evening of the Newman wedding, the Abbott pool house burned down and the police called it arson. Diane claimed she was asleep by sleeping pills and barely managed to escape. Phyllis said that she left Jack and Kyle at the wedding because of a call that she was needed at Newman, but Phyllis had been seen at the Abbott mansion by Diane's friend Isabella about the time of the fire. Phyllis admitted that she had stopped by to change her gown after she sat on an ink pen. Evidence was gathered against Phyllis, and she was indicted for arson and attempted murder.
Phyllis paced her jail cell the evening before her trial, remembering being taunted by Diane that Phyllis would be spending thirty years in prison while Jack went on with his life with Diane. Phyllis finally fell asleep and dreamed of all the people she had wronged from her past. Danny appeared, telling her how much he hated her for breaking up his and Christine's marriage and lying to him that Daniel was his son. Michael appeared and reproached her for having him kidnapped and making him think he was going to die. Dr. Tim reminded her how he had been the only one who truly loved her, but that she had just been using and blackmailing him into doing what she wanted. Daniel's father Brian reminded her how she had lied to him, switching blood samples and manipulating him. Sasha appeared and reminded Phyllis how she'd let her die in the fire. And Paul accused Phyllis of running him down with her car. Phyllis pleaded for mercy, reminding them that she'd once been friends with them, or that she had truly loved them, or that she was sorry and had changed. But none of them would forgive her, and they descended upon her. Phyllis woke up screaming and tearing her clothes off. The guards took her to the infirmary and gave her a sedative after her breakdown.
Phyllis finally convinced Jack that Diane had set her up so that Diane could have Jack, and they entrapped Diane going to such lengths that Jack took Diane to bed. Phyllis was acquitted, and later found the note that Diane had written to pay a bum to call Phyllis away from the wedding. Jack and Phyllis used this as blackmail to get Diane to give Jack custody of Kyle.
Several months later, the Cosmetic Wars began between Newman Enterprises and Jabot Cosmetics. Tensions rose as nearly everyone's mate was the enemy. Victor headed up Newman, and his wife, Nikki, worked for Jabot. Jack was Jabot, and his wife, Phyllis, worked for Newman. Neil worked for Newman, and his fiancé, Drucilla, worked for Jabot. Victoria and Nick were in the middle with their parents on opposite sides. Victoria was resentful that Victor passed her over and mentored Nick to take over Newman one day, while Nick was unable to forgive Victor for being too close to his wife, Sharon. Newman Enterprises outbid Jabot to buy out Satine Cosmetics for Women of Color due to inside information that Drucilla let slip to Neil. To compete, Jabot decided to resurrect a similar shelved project of Ashley's called Tuvia. Drucilla got her payback when she found out that Newman was trying to woo Satine creator, Damon Porter, as the chemist for the newly named Safra line. Drucilla stole him away to work for Jabot during Ashley's maternity leave. Jabot was still hurting financially, but saw Tuvia as their savior. Jabot was depending on their reputation and fine product to put them back in the black, but Victor could not let Jabot win the war, so he blackmailed Michael Baldwin into paying off large retailers to give Newman the prime shelf space normally held by Jabot. Tuvia still outsold Safra, but only by a slight margin. Once Jack found out about Newman's dirty tricks, he confronted Phyllis about how much she knew. Unable to convince him of her innocence, Phyllis moved to a hotel to give him some space, and Jack gave his son Kyle back to Diane.
Even after Diane invested heavily and bailed them out, Jabot really needed a miracle. Enter Damon's old flame and co-worker, Vanessa, who came looking for him with the discovery of a rare orchid whose extract could straighten hair. If an orchid could be found, and a way to synthesize it, Jabot would have their miracle. Damon decided to go to Ryukyu Islands, Japan, to secretly hunt for the orchid. But nosey Dru found out, so relocated her wedding to Japan. Damon and Vanessa found themselves in the midst of the enemy as they joined Dru and Neil on the Newman jet for Japan when Neil brought along Phyllis, then Jack insisted on going too. While the others prepared for the wedding, Damon and Vanessa went orchid hunting, to no avail. But when they attended the lavish wedding, they discovered one-in Drucilla's wedding bouquet! Unable to get it away from Phyllis who caught the bouquet, they interrogated Dru's daughter Lily as to where she found it, and they managed to find another. Once home in GC, in an effort to make up with Jack, Phyllis gave him her orchid. When Phyllis found out that Jack already had one, yet accepted hers, she stole them both from the Jabot lab, quit her job at Newman, and left town. Phyllis later returned, intending to give the orchids to Newman, but Diane stole them, keeping one orchid for herself, and made a deal with Phyllis that she could have the other only if she gave it back to Jack, which Phyllis did. Jabot stopped work on the project, as their financial situation worsened. Phyllis dealt the final blow to her marriage by also testifying on Victor's behalf. Jack filed for divorce several arguments later. Phyllis asked Nick for her job back, but he turned her down. Damon and Phyllis became lovers, infuriating Vanessa, who retaliated by offering her project to Newman.
In the fall of 2003, Danny returned to Genoa City to lend moral support to help Gina get her life back together after the devastating loss of her restaurant by arson. Apparently now a washed up has-been, Danny stayed on. Of course the first person he visited was Christine, once again physically separated from Paul, though not emotionally. After reuniting with Gina, Danny ran into Phyllis. Although pleasant, he refused to give her any information about her son, Daniel. It turned out that while Phyllis had spent years pining for the child who was taken from her, Daniel had grown up in a Swiss boarding school. Danny had seldom seen Daniel, and had never even told him that he was not his real father. Whenever Phyllis inquired about Daniel of Danny's sister Gina, she was given the cold shoulder, and was not even given photos of her own son. Left to believe that his mother had abandoned him, and his father didn't have time for him, Daniel resented both parents.
Several months later, Daniel returned to Genoa City, a 16 year old with raging hormones, to visit his father for spring break. Phyllis heard that he was coming, and was desperate to get to know her son again. But Danny and Christine thought it better to wait until they could break it to Daniel. Phyllis ran into Daniel at Crimson Lights, realized who he was, and began making contact. She told Daniel that she was his mother, and eventually he asked her to tell him the truth about his family. Once Daniel heard Phyllis' side and discovered that Danny was not his real father, he confronted Danny and Christine. At this time, Phyllis was living with her lover Damon Porter, who was helping her deal with her demons through meditation and talking things out. Daniel wanted her to move in together elsewhere so they could bond, and Damon urged Phyllis to do it, but he warned her that Daniel was playing on her emotions. Unable to find a suitable apartment, Phyllis and Daniel accepted Victor's offer to live in Victoria Newman's house on the Newman Ranch. Damon nicknamed Daniel "Slick", and Daniel resented him. Daniel met Jack, they hit if off right away, and Daniel could see that his mother and Jack still loved each other.
Finally, Damon confided in Phyllis his dark secret which had kept him so aloof from her and everyone. Eight years ago, Damon's son Elias had died. Had he lived, Elias would have been the same age as Daniel, which was why Damon reacted so to Daniel. Damon had lived in Atlanta, and Elias loved horses and had wanted to be an Olympic champion. Damon and Elias had been eating burgers at a fast food joint when they were harassed by some street kids, but Damon said he had "put them straight". Damon had been using the encounter as a lesson to Elias on the way home in the car, when another car drove up beside them, and the punk, Dominic Hughes, fired a shot. The shot which had been meant for Damon, hit Elias instead, and the boy had died in his father's arms. Damon bought a gun and had become consumed with revenge hunting down his son's killer. Hughes was finally captured, tried, and convicted to prison, but Damon's rage had not gone away. Because Damon had not been there for his grieving wife Adrianne, she hadn't been able to bear to be around him, so they were divorced. Years later, reality had finally set in that mourning wouldn't bring Elias back. Damon had learned to build a facade of control through meditation to cover the rage that was always still there. Daniel learned to respect Damon when a kid named Alex came after him and his friend Kevin to even the score for a favor unpaid. Phyllis tried to get between them, but Damon arrived and saved them both, scaring the kid away.
Damon found out that Hughes was up for parole and began spending his time contemplating his Samurai sword, so Phyllis visited Hughes in prison to warn him to stay away because Damon still wanted to kill him. Dominic told her that he already knew that Damon lived in Genoa City, and he fully intended to head there upon his release. Hughes claimed that he was born again and had to see Damon to plead for his forgiveness. Phyllis left as Dominic sneered behind her back. Dominic was paroled, and showed up in Genoa City immediately. Phyllis met him and brought him to Damon, hoping to help Damon keep his cool. Damon didn't believe a word until Dominic showed him the tattoo on his inner arm in memory of Elias. Later Damon felt sorry for the guy who had spent his parole money on a trip to see him, so he sent Phyllis to deliver some cash to Dominic. As Phyllis approached Dominic's motel room door, she overheard another thug leaving and discussing a heist they were going to pull, and how they suckered Damon. Phyllis made a call on her cell phone, then daringly burst into Dominic's room. Dominic pulled a gun, threw her on the bed intending to rape her, as Damon broke down the door wielding his Samurai sword. Hughes was knocked down and his gun flew across the floor. Phyllis convinced Damon not to kill him, but when she stepped between them, Hughes went for his gun. Damon jumped between them as Hughes fired, and Damon took the bullet. With a last surge of rage, Damon ran Dominic through with the sword.
Both men were rushed to the hospital, where Phyllis hissed, "I hope you die!" to Dominic as his gurney passed. Damon was near death in the emergency, and his spirit left his body and stood by Phyllis as she frantically watched them work over him. The spirit of Elias appeared and told Damon it wasn't his time, to return to Phyllis who needed him. Elias forgave Damon for not protecting him, and said that he would always be in Damon's heart. Damon lived. While still in the hospital recovering, Damon and Phyllis were questioned for suspicion of conspiracy to murder Dominic, thanks to the lies Hughes told the police. Phyllis had to grovel to Christine to represent her, and although Christine said no, Daniel talked her into taking the case. Phyllis decided it was time for drastic measures. Dressed up as a man, she got thrown in jail for drunk driving, and attempted to get Dominic to confess. But Dominic recognized her, Phyllis was arrested, then later Damon too, so Phyllis hired Michael Baldwin to be her lawyer instead. Things were looking bleak, so Phyllis pulled another disguise as Atlanta reporter Sandra King. Her interview questions of DA Glenn Richards helped him to doubt that the felon Dominick was telling the truth. Michael took over the case and broke Dominick's story in questioning before the DA, so the charges against Damon and Phyllis were dropped. Damon's ex-wife Adrienne arrived in Genoa City from Africa where she had spent years getting over him and the tragedy of losing their son, and they reconciled and returned to his ranch in Atlanta.
Lily Winters fell for Phyllis' 16-year-old son, Daniel. Phyllis and Lily's mother Dru fought it at every turn because Phyllis and Dru were enemies, and the teens were forbidden to see each other. 14-year-old Cassie Newman was grounded, and she too had a crush on Daniel. Word was going around school about a secret party to be held in a park. All the older crowd was going, and Cassie just had to go too, especially since Daniel said he would be there. Cassie managed to talk her father Nick into rescinding the grounding for the evening so she could "go to a movie" with her long time friend Ali. Sharon didn't agree, but Nick persuaded her to give in. Cassie ended up at the party and Daniel was there, drunk on beer he had bought from his friend Sam, trying to get over being separated from Lily. The party ended late, and everyone else had left. Cassie, who had not been drinking, assured her friends that she had a way home, then found Daniel passed out in the back seat of his convertible. Deciding he was too drunk to get home, Cassie took his keys and started the car even though she hadn't had a lesson or a learner's permit. Viewers heard a crash. Since both were thrown from the car, and neither remembered anything, no one realized that Cassie had been driving. As soon as a bruised Daniel was able to leave the hospital, he was arrested for drunk driving and spent the night in jail. Phyllis bailed him out, beside herself with the thought that the son she had lost for so many years could be taken from her again and imprisoned. But in intensive care after brain surgery, Cassie was fighting for her life. There was hope, so long as infection didn't set in. Suddenly, Cassie sat bolt upright as she remembered that she had been driving. After failed attempts to tell her mother, Sharon, or to use the phone, Cassie got out of bed, pulled out her IV, donned her mother's trench coat, and staggered out of the hospital intent on finding and telling Daniel that she had caused the accident. After several hours of worry by her family and friends, and searching by the police and detective Paul Williams, Cassie somehow found her way to Crimson Lights. Lily and Daniel rushed to her as she was near collapse. Exhausted, Cassie attempted to tell Daniel the truth, but all she could get out was the word "crash." Someone called 911, Nick arrived shortly before the paramedics, and he accompanied Cassie back to the hospital in the ambulance. Anxiously, her family held vigil while Cassie's fever heightened and Newman financed specialists arrived too late to help. Victor, Nikki, Victoria, brother Noah, and Grandma Doris who arrived from her home in Eau Claire, sadly said their goodbyes and I love you's, and left Cassie alone with Nick and Sharon. One last whisper by Cassie in Nick's ear that it wasn't Daniel's fault, as he chokingly sang her a lullaby while Sharon hugged her, viewers saw flashbacks of the adorable child Cassie had been, the light of their lives, and Cassie slipped away. Because Daniel was her son, and Victoria had returned from Italy, Phyllis and Daniel were kicked off the Newman ranch. They moved into the Abbott Mansion as Phyllis and Jack were growing close again.
Daniel was charged with vehicular manslaughter. Lily couldn't be parted from her new love, so she talked Daniel into hiding out in the Abbott family playhouse. While the police, his mother, and a vengeful Nick Newman searched for Daniel, Lily was visiting him and bringing him food right under their noses. Malcolm figured it out, and tried to get Lily to talk Daniel into giving himself up. But instead they ran away together in Lily's car. The fugitives dumped the car in St. Louis with Nick Newman and Phyllis right on their heels. They turned up in Los Angeles, and were camping on the beach and enjoying themselves, awaiting the return of Brendan, a musician friend of Daniel's father. Daniel began having dreams with flashes of the accident, and finally realized that it was not him, but Cassie driving the car. Meanwhile Brendan returned home to find Phyllis, Nick and Neil Winters waiting for him. Nick brought in the police, and they all went searching for the kids nearby. Phyllis discovered them working on the beach dressed in fruit costumes promoting a beachfront cafe, but didn't realize it was them until they had disappeared. Daniel talked Lily into going to the cafe where the three parents awaited them to appear to claim their paychecks, so Neil was reunited with Lily. Nick spotted Daniel watching, and chased and caught Daniel. Phyllis managed to stop Nick from beating him up. They turned the teens over to the police, and both were returned to Genoa City.
Nick returned to find Victoria in charge of Newman, but insisted on firing Phyllis. But after telling Nick off, Phyllis retorted, "You can't fire me. I quit." Lily was out on bail, and Daniel went on trial for vehicular manslaughter, but Christine and Paul failed to prove that Cassie had been driving the car. Daniel was in contact with Danny by phone and begged him to stay away. But in a last minute save, Nick Newman turned over the evidence he'd been withholding, the clothes Cassie had been wearing that fateful night. The boot she was wearing matched a piece of a heel found under the accelerator, so the judge let Daniel go free. Lily's parents made a deal to send her away to boarding school in New Hampshire to get the DA to drop the charges against her. Lily and Daniel vowed their undying love and were torn apart at the airport.
Deciding Daniel needed more stability in his life, Phyllis rented an apartment, and she and Daniel moved out of the Abbott mansion. Expecting to walk into a bare apartment and to sleep on air mattresses for awhile, they were shocked to find it fully furnished and decorated courtesy of Jack. Daniel left, and Phyllis and Jack christened the place by making love on the living room couch. Jack and Phyllis seemed to be making their way back to each other, but as much as they still loved each other, business and Jack's vendetta against Victor always got in the way. Jack gave Phyllis a job at Jabot, and it looked promising once they were back on the same side, but Jack blew it by using her once again against Victor.
Phyllis came up with an idea to create wellness spas under the Jabot umbrella. She asked Nikki to join her with her anti-aging product, and took it to Jack who promptly shot it down as not feasible considering Jabot's instability. Phyllis and Jack had it out, and she quit her new job as Jabot Executive of Internet Affairs. So Nikki and Phyllis presented the idea to Victor instead, and he agreed to fund the project, joined the partnership, gave them an office in Newman Towers, and they called it NVP after Nikki, Victor and Phyllis. So Jack filed a lawsuit against them, which became the final split in his on-again/off-again relationship with Phyllis. Sharon signed on as Spokesperson for NVP. Not long afterward Victor became afflicted with temporal lobe epilepsy and was duped by Jack into selling him NVP, with a stipulation that Victor would have final say on all decisions, and Nikki was made CEO.
Meanwhile, Nick and Phyllis became attracted to each other, and began a steamy affair. Sharon found out, she and Nick separated. Sharon went to Brad for comfort, and they ended up having sex on a business trip to New York City. But after Daniel walked in finding his mother and Nick half-naked on the couch, the couple decided to call off their affair. After Nick had a vision where Cassie showed him how he imagined life would be had she not died (including a new baby girl named Faith), Nick showed up at home, and Sharon took him back. Nick and Phyllis continued to be thrown together by business, and they ended up stranded in New Mexico. They stopped at a place called Pepe's Roadhouse, danced and had a great time. The attraction was so great, but they resisted and spent the night separately. Phyllis turned up miraculously pregnant after being told she could never conceive, she admitted to Nick that it could also be Jack's, so Nick took a paternity test. When he received the test results he disappeared to think about his options. He returned a few days later, informed Phyllis that he was the father, but that he intended to stay with his family. Phyllis was disappointed, but insisted she could raise their child alone. Jack was disappointed too since he'd always hoped for a reconciliation with Phyllis.
Nick told Sharon the pregnancy news. She decided she didn't want Nick to stay out of obligation, ran out of the office screaming divorce. Nick and Sharon told Noah about the divorce and Nick left to move into the Newman Executive Suite at the Genoa City Athletic Club, but turned up at Phyllis' door instead, and they made love. The next morning Phyllis and Nick showed up at Newman together and told Victor and Nikki about the divorce and pregnancy. Nikki was appalled, but Victor congratulated them.
Nick and Sharon divorced with joint custody of Noah, and Sharon received their house on the Newman Ranch in the settlement. Nick and Phyllis moved into the Tack House on the ranch so Nick could be close to his son. Nick and Phyllis became engaged, and Nick threw Phyllis a fun engagement party hoedown style modeled after their place, Pepe's Roadhouse, in New Mexico which included a visit from Rocky the dancing cowboy whom they had met there and a ruby engagement ring. Sharon and Jack Abbott began having an affair. After an attempt to get married prior to the 6 month waiting period was turned down by the judge, Nick and Phyllis eloped back to New Mexico at Pepe's, and returned to Genoa City married, and looking forward to the birth of their daughter.
Paul Williams managed to track Sheila Carter to Argentina in October 2006 and discovered that she had undergone plastic surgery to look just like Phyllis, then she had killed the plastic surgeon. Later that month, Paul discovered Sheila buying baby things in Genoa City, and followed her to a warehouse where he trapped her in the cell she had constructed with the intention of imprisoning Lauren and stealing her baby Fenmore. Paul made Sheila pose for a death photo at gunpoint and made up DNA samples to convince Lauren and Michael that she had been killed when struck by a car in Argentina. Paul also told the same to Phyllis and Nick. Paul kept Sheila imprisoned undetected until December when Michael put a tracking bug on Paul's car and caught Paul bringing Sheila food. Michael picked the lock and was shocked to discover "Phyllis" behind the bars. Paul appeared and tried to convince Michael that it was really Sheila, but only a cell phone call to the real Phyllis convinced him. Knowing the authorities could never keep Sheila contained, Paul and Michael shared the secret and the dilemma of what to do with her. Meanwhile Lauren and the real Phyllis were bonding through their pregnancies, and later as Phyllis helped Lauren get through her post partum depression and anxiety attacks over Sheila.
As a winter ice storm took out the power, Phyllis and Jack became trapped in the Newman elevator. Phyllis had been on her way to the hospital for a caesarean because her baby was in the breech position, but went into labor in the elevator instead. Fearful that the baby would not deliver normally and die, Phyllis implored Jack to cut the baby out of her using a nail scissors. But Jack ended up turning and delivering the baby, who was later named Summer Ann. Meanwhile, Nick was out in the storm rescuing Phyllis' son Daniel from a car wreck. Lily had to do CPR on Daniel while Nick sped them to the hospital. All were united later, Phyllis and her baby were fine, and Daniel recovered with only broken ribs. Jack developed a close bond with Summer, and later set up a nursery for her at Newman. As similarly injured parties by Phyllis and Nick's affair and marriage, Jack and Sharon began an affair and were married. A remarriage in Genoa City was planned for Nick and Phyllis to make them legal, but it was postponed due to the disappearance and presumed death of Dru.
Detective Maggie Sullivan and Paul Williams began dating, and in her curiosity about Paul's frequent absences "on a stakeout" she tracked him by his cell phone to the warehouse. Sheila conned her into believing that she was Phyllis, Maggie let her loose, then Sheila shot Maggie with her own gun. Paul arrived later and was trapped in the cell too by Sheila when he came to Maggie's aid. Sheila then went to Phyllis', tied her up and waited for Lauren and baby Fen to arrive while taunting Phyllis about how great it would be to take over her life with her hot husband and new baby. After Lauren arrived she was tied up, and Sheila took Phyllis and babies Fen and Summer to a retirement home where she had an apartment. Michael eventually rescued Paul and a near-death Maggie from the warehouse cell, then they rescued Lauren. While Michael and Paul followed Sheila's walkie-talkie signal which she planted to lure them elsewhere, Nick and Lauren, with the aid of Kevin Fisher, enhanced the background noise from her latest taunting call. Nick realized where they were, and while they tried to find Paul, Lauren snuck out with the gun Paul had given her for security. Lauren found the apartment, broke in, and confronted the two Phyllises. Phyllis managed to convince Lauren that she was the real one, and Lauren shot Sheila dead. With her dying words Sheila still taunted Lauren that she would never be rid of her and she had shot the wrong one. Phyllis was livid with Michael and Lauren for endangering her and her baby, and refused to reconcile. Maggie recovered from her gunshot wound and did not tell the police about Paul or Michael holding Sheila against her will, so they were not charged.
The controversial NVP spa project known as Clear Springs had everyone at Newman taking sides. Jack, Victor, Phyllis and Nick felt a large development would revitalize a dying town, and Nikki, Brad, and Victoria were opposed because it would wipe out some historic structures. Nikki and Neil ran for the vacant Newman board seat to boost the votes for their side, and thanks to Phyllis' blackmail of Brad over his affair with Sharon, Victor's yes-man Neil won, so they appeared to have the upper hand on Clear Springs. But Brad got Phyllis arrested for extortion.
In April of 2007, Sharon told Drucilla she was being blackmailed by Phyllis over her affair with Brad Carlton. When Sharon and Phyllis began fighting on the edge of a cliff during a NVP photo shoot, Dru intervened. When all lost hold of the cell phone they were fighting over, they lost their balance and fell backward. Dru sailed off the cliff into the river below, and Sharon was left hanging onto the edge for her life. Phyllis tried to save Sharon, but she lost her grip and also fell to the river below. Rescuers combed the area and found Sharon's lifeless body, but she was revived and lived. Dru was never found. Only the jacket she wore was found below the falls, so she was presumed dead.
Victor and Sharon were scheduled to fly to Clear Springs, then Jack was going in Victor's place, but had to cancel. So Sharon and Nick ended taking the trip instead. On the return trip the Newman jet went down in Lake Michigan with no survivors. Sharon surprised everyone when she walked in on the Newmans and Jack just after they'd gotten the news. She was just as shocked to hear that her taking another flight had saved her life, and that Nick was missing and presumed dead. Noah and Nikki were devastated, but Nikki carried on with her State Senatorial campaign with the help of her campaign manager, David Chow. Victor abandoned them in their grief after Hope called, by taking off for Sri Lanka to search for their missing son Victor Jr. Nick turned up lost in the woods, found by internist Logan Anderson and brought back to Genoa City and his family. But Nick had lost his memory of the past two years of his life, including his marriage to Phyllis and their baby Summer. Remembering only his love for Sharon, Nick tried to win her back even though she was married to Jack, but Sharon though tempted, wasn't interested. Nick began seeing Phyllis, curious as to why he ever hooked up with this person he remembers not even liking very much. When Noah started acting out for Sharon, Nick agreed to move back in with Phyllis so Noah could come live with them. Nick did not regain his memory, but it didn't take long for him to fall in love with Phyllis all over again. Then Phyllis was tried, found guilty of extortion, and went to prison. But Michael got her off after serving only a few months.
After Jack lost his senate seat and Nick was fired from Newman, they got together and decided to start a new Internet and print magazine. They asked Phyllis to join them, and Sharon requested to work with them later. They named it Restless Style. Nick bought a dilapidated warehouse which was turning into a money pit, and was financing it and his share of the venture on money borrowed from his trust fund, which he could not receive until he was 40. They hired Daniel as a photographer's assistant and general go-for, and Amber begged to be hired as receptionist. Victor labeled it foolhardy, and was sure it was going to fail.
As the launch date for Restless Style approached, the foursome began having problems getting along and determining who was to make the needed decisions. Then, last minute, Jack hired Jamie Whitfield as a consultant who hated everything and convinced them to change it a lot; most notably the cover, and Lily's cover was axed. Jamie brought in professional model, Samantha Cresswell and Kathy Hilton for a last minute revamp. The printer couldn't handle the last minute changes and still get it out on time, but other printers were found to take up the slack. The magazine was launched in time, just as the website crashed due to a virus that Amber had unknowingly allowed to infect the server. At the rate the partners were bickering over who was in charge, Restless Style would never succeed.
Amber and Daniel officially became boyfriend and girlfriend, Daniel moved in with her, and Phyllis did not approve. Just as Daniel and Amber declared their love, and he appeared to be discovering a hidden talent for drawing and caricature possibly leading to a new career, his father, Danny, made a surprise visit and asked him to go on the road as tour photographer for six months.
Sharon came up with an idea for the webzine which would feature an animated avatar guide in the form of "Restless Amber", a character based on Amber Moore. Phyllis was skeptical about the idea, the budget, and the flakiness of Amber, but Jack and Nick supported it. Meanwhile Amber got a chance to go to Europe to see Daniel, but had to stay to work on creating "Restless Amber". Danny sent Phyllis a photo of Daniel partying on tour with a cute girl on his lap, which Phyllis made sure that Amber saw. Amber, unable to reach Daniel, reacted by getting drunk and having sex with Adrian Korbel, who had been recently dumped by Colleen Carlton. When Daniel returned, Amber felt so guilty she had to tell him, and Daniel dumped her. He came back to her place once thinking he could forgive her, but after having sex, he decided he could not, leaving Amber heartbroken. Phyllis, who never approved of Amber, was thrilled and evicted Amber from her penthouse, but later Daniel made Phyllis allow Amber to stay. Daniel and Amber confessed their love on their favorite talk radio show as "Herve" and "Marlana" again. Amber moved out of Phyllis' penthouse and in with Daniel at his artist studio, making Phyllis crazy once again.
As Victor predicted, the first edition of his son Nick's Restless Style magazine/webzine did not do as well as expected, so the second had a hipper cover featuring hot singer Katy Perry. Then Adrian Korbel was hired to do an article on Victor's new wife, Sabrina, and the Newman Gallery for the third issue, to which she and Victor approved. Victoria stepped up as a last minute replacement for the cover which was done in a Hollywood retro style. Though Adrian stumbled upon a rumor that Sabrina had wrangled an exhibition for her lover Phillipe when she was Art Curator at the Pompidou Museum in Paris which could shed new light on the latest Mrs. Victor Newman, he decided not to make a big deal about it. But Jack did some further research and turned Adrian’s article into a scandalous one that upset everyone, but the magazines sold into a fourth printing. Jack had sent Adrian off to Australia to do another article, so he was furious when he returned and found out what Jack had done to his article.
Jack's success-by-any-means business style with Sharon's undying support was making it impossible for the two couples to co-exist at Restless Style, so they let a coin flip decide who would buy out the other. Jack and Sharon won, giving Nick and Phyllis a price to buy them out or take the same price to leave. Knowing Nick didn't have the funds, Sharon visited Victor asking him to give Nick his job back at Newman. But Victor surprised them all by giving Nick a line of credit for the buyout instead, and Nick and Phyllis ended up with the magazine. Knowing they needed someone with contacts in fashion, and with Nikki now out of a job and full of great ideas, they took her on as interim Editor in Chief. Nikki got Ruby Aldridge for the cover of their first magazine on their own and Phyllis was in charge of the farewell letter from the editor to Sharon and Jack. Phyllis avoided the urge to trash them and wrote something nice. But after Nick spent a little too much time with Sharon resolving a problem with Noah, she changed it back to trash. But after a little loving, Nick forgave her as always. But neither Phyllis nor Jack were none too pleased when Nick's first act as advisor to Newman was to rehire Sharon as their 'Beauty of Nature' spokesperson.
After Victor's wife Sabrina's tragic death, and the man Victor held responsible was murdered, Victor disappeared and was under investigation for murder. Nick received a call from a Priest in Paris concerned about Victor who was hiding out at a monastery there. Nick arrived in Paris, and ran into Sharon who was there to meet Noah on his class trip, so Nick showed her around Paris. Phyllis arrived later to surprise Nick after putting the latest issue of Restless Style to bed, but he was off sightseeing with Sharon. So Phyllis supervised a Paris photo-shoot for the magazine, then went sightseeing herself; one of the sights being Nick and Sharon kissing on a bridge. They had gotten caught up in the moment, and that was as far as it went, but Phyllis took the next flight home and did not mention to Nick that she was even there. After witnessing the kiss in Paris, and convinced that Jack and Sharon's marriage was on the skids, Phyllis did all she could to keep Sharon from falling back to Nick. Phyllis approached Brad to let him know the field was open for him again, and if he needed any help, she was willing. Brad found Sharon at the Athletic Club bar, and worked on getting her back himself. Phyllis then arranged for Sharon to find out some more of Jack's lies causing a further split between them. Phyllis was forced to admit that she'd been in Paris when the Paris photo-shoot came out in print, and she told Nick what she had seen there. Nick apologized and assured Phyllis that it was just a moment between them, and that Phyllis was still the only woman for him.
In late January of 2009, Sharon went up to the Abbott cabin at Twin Lakes to be alone and think about what to do with her life after divorce papers were served on Jack and became stranded there in a snowstorm. Brad showed up and declared his love, but Sharon sent him away. On the drive home, Brad had car trouble, got out, and heard the screams of Noah Newman who had gone skating with Eden and fallen through the ice. Brad died a hero after he pulled Noah from the hole in the ice, when he fell through himself and drowned. Meanwhile Nick made it through the snowstorm to the Abbott cabin to let Sharon know what had happened to Noah and Brad. Just as Phyllis had suspected when she begged him not to go, Nick and Sharon ended up stranded there together, reminiscences got the best of them, and they made love in front of the fireplace. Nick admitted it when Phyllis guessed. He thought about his options for a few days, but decided that Sharon was his past, and Phyllis was his future.
Eden and Noah took off together for the Abbott cabin at Twin Lakes to be alone and have sex for the first time, but they reconsidered and had left by the time both Sharon and Nick got there to stop them. Once again, Sharon & Nick fell back into the old attraction and had sex there themselves. Nick admitted to Phyllis what had happened and suggested they separate until he could decide who he really wanted. Nick spent the night at Victoria's, and Phyllis went crazy in Sharon's hotel room, screaming and cutting up her clothes. Phyllis discovered Sharon's stash of stolen items, and notified the police. When Sharon arrived back at her room, she was arrested for theft. Jack bailed her out, Nick accused Phyllis of setting her up, and Victor decided it was time that Noah came to live with him. Nick and Phyllis split up for a time from the fallout, then just as they got back together in time for their anniversary, Phyllis was caught on hotel video tape and arrested for trashing Sharon’s room. Sharon had a confession written up ready to give to Assistant DA Heather, but thanks to Phyllis' plea for Noah’s sake, Lauren dropped shoplifting charges against Sharon, so Sharon dropped the charges against Phyllis.
Sharon told her mother Doris that she was pregnant and there were three possible fathers. Later Cassie appeared to Sharon in a dream saying that the baby girl she foresaw on her deathbed had been Summer. Sharon tried to tell Nick that she was pregnant but was interrupted, then told Jack, who confided in Billy not realizing that Billy was the third. Jack told Sharon he wanted her back and the baby, whosever it was, so they reconciled.
Memorial Day 2009, the anniversary of Cassie's death, found Sharon and Nick still grieving, and Nick finally feeling remorse for not being there for Sharon back then. Sharon tried to avoid Nick, but they ended up running into each other at Cassie's grave where emotions ran high. Nick referred to Cassie's prophecy of another baby girl, causing Sharon to admit that she was pregnant and that it may be his, which was overheard by Phyllis. Phyllis lambasted Jack for letting this happen, and because she overheard Sharon say that Jack knew everything and he forgave her, she asked Jack how he could forgive Billy being the third possibility. Jack was shocked and later attacked Billy for it. Sharon admitted to Jack that Billy may be the third possibility of father of her baby, while Nick admitted to Phyllis that Sharon was pregnant and it may be his. Jack was understanding and loving even though it ruined his relationship with his brother, but said he still wanted her and the baby no matter whose baby it is. Phyllis reacted calm and accepting, and gave Nick an ultimatum to choose between her and Sharon.
Sharon made an appointment for a paternity test. Nick remembered the wonderful parts of his life with Phyllis, comparing them to memories with Sharon. Sharon walked in and they kissed passionately. Nick told her that he was leaving Phyllis, and wanted to be with Sharon. But Sharon turned him down, saying she and Jack were back together and would raise the child, and the she could not break up Nick's family. Despite that, Nick went home and told Phyllis that it was over. Later at the Athletic Club Nick came out of his room, caught Sharon coming down the hall, convinced her that they were meant to be, and they again made love. Meanwhile Phyllis was pouring her heart out to Jack, and they ended up making love as well, with Jack's new girlfriend Mary Jane scowling through the window. But after Jack left Phyllis', he went to Mary Jane and they made love too. With Nick and Sharon getting back together, Mary Jane decided to work on getting Phyllis out of Jack's life so that she could have Jack to herself. Nick told Phyllis to go ahead and file for divorce, that he would not fight her on anything, and Phyllis replied, “You want it so bad, get it yourself!” After Nick left, Phyllis told Summer that her daddy was not going to be living with them anymore. Sharon got the paternity test results back and was ecstatic that she and Nick were expecting the daughter Faith that Cassie predicted on her death bed and in Nick's dream.
Mary Jane befriended Phyllis, and once she had her trust, she made her daughter Summer have an allergic reaction and go into a coma by kissing her with peanut butter on her lips. Mary Jane then led Heather to believe that Phyllis did it intentionally. After seeing Nick so distraught over his daughter Summer being in a coma, Sharon realized that Nick needed to be there for Summer and Phyllis, and not run off with Sharon like he did over Cassie, so Sharon told everyone that her baby was Jack's. Phyllis was later exonerated when it started looking as though Mary Jane had something to do with it, and had disappeared. Summer came out of the coma, but with brain damage affecting her speech. Summer’s obsession with watching the video of their wedding made Nick realize how much he really loved Phyllis and wanted to stay together, even marry her all over again. Meanwhile Sharon admitted to Jack that Nick was really the father of her unborn baby, and Jack refused to forgive her for lying to him. Sharon watched from the bushes as Nick and Phyllis renewed their vows. Later Sharon walked out of the jewelers in a daze with a duplicate of Phyllis' new wedding ring, was arrested, and institutionalized for thirty days for mental observation. Her mother Doris visited her and questioned why Jack, the father of her baby, had not been by to see her, causing Sharon to admit that Nick was the real father. Later as Doris left, Sharon opened her door and cautioned Doris not to tell anyone, but Nick was outside and overheard. After Doris was out of sight, he returned, confronted Sharon with truth, and she admitted it. Nick told Sharon he could not walk away from his child. Jack told Phyllis the truth about Mary Jane being his unstable ex-wife Patty after plastic surgery. Phyllis confronted Victor, asking if he brought Patty in and set her up to get back at Jack, causing Patty/Mary Jane to hurt Summer. Victor avoided the question, claiming he would never intentionally hurt a member of his family. Then Phyllis left to take Summer to Switzerland for expert help with her recovery from her disability.
Phyllis returned weeks later to find Victor in the hospital after being shot three times by Patty Williams/Mary Jane Benson, and in critical condition needing a heart transplant. And Sharon, after delivering her baby Faith, was told by the doctor that she had died (although he had really given her to Ashley as her own). The baby was cremated, so by the time she told Nick there was no way to prove differently.
Billy made a surprise move by resigning as Co-CEO of Jabot and buying Restless Style magazine/webzine from Nick and Phyllis using a loan from Ashley. Phyllis was reluctant, but decided that it was no fun anymore without Nick, and she could spend more time with Summer if she went back to work at Newman.
Adam and Sharon became romantically involved and impulsively flew off to Lake Tahoe on the Newman jet, and got married. The jet crashed on the way back, and as they were going down, Adam showed Sharon a note that said that her baby was still alive. They survived the crash, but Sharon suffered a head injury, and didn't appear to recall the note. But eventually, Jack joined forces with Victor to take Adam down. They plotted to get Sharon to lure Adam to the Abbott cabin, and with all he had wronged in attendance, they confronted Adam with what they knew. Adam played innocent even after Phyllis arrived with a letter that said that Ashley's baby Faith was really Sharon’s. A DNA test later proved it, and Ashley reluctantly gave Faith to Sharon. Adam later set off an explosion during a ball at the Athletic Club and was presumed dead.
In time, Jack finally began noticing “Emily’s” unusually manic behavior, and began confiding in Phyllis, wondering if he had really known Emily well enough to marry her. Patty, as Emily, would follow them and get jealous, plotting to get rid of Phyllis. “Emily” claimed to be pregnant by Jack to keep him, but Jack checked out her doctor and realized she was faking. Lauren Fenmore disappeared for a few days, but her husband Michael Baldwin’s joy at her return was dashed when she told him she had awakened that morning in a strange man’s bed, and began acting very abnormally. Michael got her an appointment with psychologist “Emily”. When Sarah Smythe met “Emily” she recognized her immediately as Patty Williams. Sarah had been Patty’s nurse at the surgical center in Argentina where they both had their plastic surgeries. Sarah made a deal with Emily who was tired of Jack continually going to Phyllis for solace, that Sarah would kill Phyllis if Patty would kill Michael. (Sarah turned out to be Sheila Carter's sister who had plastic surgery to impersonate Lauren and Daisy and Ryder turned out to be Sheila's twin children.) Sheila visited Phyllis with Daisy waiting outside ready to strangle Phyllis. But when Lauren heard that Daniel was on his way there, she called Daisy and told her to stop him. Sarah attempted to kill Phyllis herself but Phyllis got away. Meanwhile Daisy kept Daniel at his apartment by drugging him, and was having sex with him when Amber and Little Eric walked in on them.
Back at Crimson Lights, Kevin decided to get help to find the missing Jana from her Ouija board with Kay and Murphy. It kept pointing to letters that spelled out zoo, so Murphy helicoptered the three of them to find Jana with a heat locator. Once on the ground they searched separately, and Kevin found Jana suffering worse headaches than when she had a brain tumor. After Michael found Phyllis barricaded in her room, they drove to the zoo and arrived to find the real Lauren and Sarah having a gun standoff in the fun house mirrors. Meanwhile Daisy held Kevin and Jana at gunpoint, but Ryder stepped between them and convinced Daisy to give him the gun and run away with him. Kevin picked up the gun where Ryder had dropped it, but Ryder convinced him to let them go. Michael was able to tell them apart, and tried to convince Lauren to drop the gun, that the police would take care of Sarah. But Lauren was well aware that police never could contain Sheila either, so started shooting. A ricocheting bullet hit Phyllis in the cast on her broken leg, and she and Michael were caught between the two Laurens, each with a gun. Phyllis gave the password “karma” which she had been given by Jana, and Lauren confirmed herself as the real Lauren with the response “is a bitch”, then Lauren shot and killed Sarah. Daisy and Ryder left together by car, and Daisy promised she would be back someday as her mother Sheila would want.
Phyllis and Sharon came upon a poster for missing person Richard Hightower, and Phyllis recognized him as the man who was costumed identically to Adam at the ball. The manager and waitress at the café identified Adam and Hightower as the man and boy who had met Adam there. Victor discovered that Adam had never gone back to Hope’s grave in Kansas like he said he had when he disappeared for a week shortly before his death, and Paul uncovered the fact that Hightower had leukemia and had gotten a bone marrow transplant from Adam in Minneapolis instead. Nick put it all together, the resemblance between the missing Richard Hightower and Adam, the bone marrow which was used for the identification would have the same DNA, the body burned beyond recognition, and realized that Adam had killed Hightower and faked his own death. He and Phyllis shared their theory with Victor and Nikki, and Sharon produced a letter from a bank confirming that Adam had withdrawn all his cash on the day he supposedly died. Viewers saw a bearded Adam lounging on a beach with a drink in his hand. Victor, Nick, and Jack dug up Adam’s grave, and an expert took dental impressions of the body to be compared to Hightowner’s. They confirmed that the body was Hightower, and Nick was arrested for his murder.
Adam rolled over in bed to his old girlfriend Skye Lockhart, who supposedly had been murdered and dismembered two years prior. Skye assured him that they had covered his tracks well. But Victor tracked him down and forced Adam to return to Genoa City with him, leaving Skye behind with a briefcase full of cash. Victor interrupted Nick’s trial expecting Adam to confess as Victor had coerced him into on the plane, but instead Adam had a mental breakdown which later was proven to be faked. Pomerantz refused to exonerate Nick, but did let him out on bail, and proceeded with the case against Adam. As Phyllis had promised herself, now that it was over, she left Nick due to his inability to let go of Sharon. She kicked Sharon out of her penthouse and moved back in.
One stormy night in July, Phyllis had a blowout as she drove out to the Abbott cabin to see for herself if Nick had gone running to Sharon’s rescue again. Determined to change the tire herself, a car stopped and Deacon Sharpe got out. As Phyllis said, “What luck – who comes to her rescue but the guy who framed her son.” Deacon explained that he had framed Daniel for art forgery because Sarah was threatening Deacon's son, Eric, and that he had completed his prison sentence and was on his way back to California. After Phyllis got cut on her hands, he convinced her to let him change the tire. Finding her spare to be flat, he left to get another tire. Nick came upon the still stranded and wet Phyllis, but she sent him away. When he returned later, Phyllis grabbed Deacon and kissed him to make it look like they were necking, which sent Nick away angry. When Nick came to see her the next day, she let him know she was done being his doormat, and was leaving town for a week with Summer. Upon her return, she stopped at Jimmie’s Bar and spotted Nick necking in a booth with Christine Blair. She later arranged to meet Jack at Gloworm, and while she waited for him she was served a drink by their new bartender, Deacon. Jack walked in just as Phyllis slapped Deacon for trying to kiss her.
Phyllis began occupying her time writing a blog titled “The Woman Scorned” where she exposed dirt on all the other women in Genoa City. When Billy became overwhelmed with the responsibilities of Restless Style he offered Phyllis the job of editor in chief, and she accepted.
Phyllis and Nick divorced, and she found herself back in Jack’s arms when he needed someone. In October 2010, just as Jack and Phyllis were celebrating their reuniting, the Abbott manor doorbell rang, and there stood Diane. Diane claimed to want Jack to get to know his son, but Phyllis refused to let history repeat itself and warned her that she had better not try.
A week later, a storm was brewing with a tornado right behind it. Phyllis and Jack took shelter from the storm with family including Summer, Kyle, Daniel, and Abby. When the power went out, they started a fire in the fireplace to roast wieners, popcorn, and marshmallows.
In October 2010, Daisy Carter (Callahan) returned to Genoa City pregnant, claiming the father was Daniel Romalotti. Daisy was arrested and jailed. Once Phyllis learned that she may become a grandmother, she insisted on a DNA test. The test revealed that Daniel was the father, and that the baby was a girl. Daniel refused to have anything to do with Daisy or her child. After Daisy had a breach of the placenta and needed bed rest for the remainder of the pregnancy, Phyllis arranged for Daisy to be released into her custody with an ankle monitor to be sure of the baby’s welfare until it was born and could be adopted. But when Daniel saw that Daisy was keeping Phyllis and Summer apart, he petitioned the court to take Daisy to live with him, so Summer could live with Phyllis. Kevin went to work for Mark Hogan's crime organization to raise the money to adopt Daisy’s child so it would not have to live a life like he and Daisy had. Motivated by one night of desperation sex initiated by Kevin, Jana made a deal with Daisy for Jana to raise the baby in hopes that it would bring Kevin back to her for good. In exchange, Jana promised not to testify against Daisy when her case went to trial.
Phyllis published a cover story titled ‘Sharon Newman the Heroine Addict’, which exposed her penchant for always doing crazy things to mess up her life then needing to be rescued; the latest being her love for Adam who had deceived her, kidnapped her baby Faith, and told her that Faith was dead. Even Sharon’s son Noah had to agree that the story was pretty spot-on. Sharon ended up in a catfight with Phyllis over the article at Katherine’s Christmas charity benefit for children, and both of them ended up covered in chocolate from a chocolate fountain. Adam and Sharon uncovered a freight elevator security camera photo from the night Skye supposedly was killed which showed two people under an umbrella, and Adam recognized Skye’s purse and shoes. They dared Phyllis to help them prove Adam’s innocence for an exclusive. Phyllis and Jack instead discovered a sack behind a dumpster that contained Skye’s same purse and shoes, which only further incriminated Adam and led to his arrest for suspicion of murder.
In their quest to prove that Skye was still alive, Adam and Sharon located the only supplier of Skye’s favorite Galibier perfume in Monaco, who had just shipped an order to a post office box in Hawaii. Sharon flew to Hawaii, but the proprietor of the general store where the box was located claimed no knowledge of Skye, even though he had just spoken to her. Knowing Skye’s craving for adventure, Sharon took a guided moonlight hike on an active volcano. Skye was there alone looking very plain with no makeup and braids, and they met when Sharon was separated from her group. After Skye refused to return home with Sharon, Sharon took a photo as proof that Skye was alive. But Skye reached for Sharon’s camera, lost her footing and fell into the volcano. Sharon held on to Skye's hand and promised she would not let her go, but Skye lost her footing and fell to her death with her final words, “I would not bet on that.” Victor watched unseen in the dark, doing nothing to help. Sharon was unable to convince the authorities that Skye had ever been there, and Victor had made sure when he found her glove and tossed it into the volcano. Later, Victor set Skye’s shack on fire. Meanwhile, back in Genoa City, Adam and his attorney, Leslie, believed Sharon, but the police assumed she had made up the story as an attempt to free Adam.
Posing as a surfer, Jack went to Hawaii hoping to find evidence to prove that Victor was involved in Skye’s death. No one would admit to seeing Skye, but Jack found Skye’s burned shack, and in it the remains of a bottle of Galibier perfume. Later Jack saw someone turn in a set of keys found on the volcano with the mailbox key the perfume was delivered to, and the same key ring Skye had had been photographed holding in a Newman elevator security tape. The evidence got Adam released from jail and cleared of all charges in Skye’s death. But after Adam moved in with Sharon at her house on the Newman ranch, and Sharon was still awarded shared custody of Faith, Victor made sure that Sharon was arrested for Skye’s murder in Hawaii. Then he later inexplicably posted her half-million dollar bail anonymously. Sharon realized she was in serious trouble after being confronted with a video taken by tourist at the volcano that night which included only the part of their conversation when she yelled at Sky and told her she would pay for setting up Adam for Skye’s supposed murder. Phyllis had second thoughts after she posted the video on the website, knowing that Sharon wouldn’t have killed Skye, and she and Jack offered to help her prove that she was innocent.
Phyllis and Jack in Hawaii, discovered that the general store owner, Koa Aneko, had suddenly come into a lot of money and left the island. Then they found a guy who sold them a video showing a quick glance of Victor lurking in the shadows as Skye fell to her death. Once back home, Phyllis showed Nick the video, and Nick confronted Victor, calling him a damn liar.
Adam tracked down Koa and left on a plane for Bangkok, Thailand where he found Koa in a beach bar. Adam couldn't trick Koa into telling him about the night that Skye died in Hawaii, nor could he after telling him who he really was and what he knew. So Adam paid the bartender to get Koa drunk, then Adam followed him to his hotel. After Koa passed out, Adam searched his room, and found a video of Skye's death. As he turned to leave Koa hit him over the head and knocked him out.
Back in Genoa City, Adam had disappeared, and Paul located him for Sharon. Because she was still out on bail and could not leave the country, Sharon got a fake passport in her daughter's name and boarded a plane for Bangkok with Phyllis following her. Phyllis watched unseen as Sharon was arrested and removed from the plane, and she continued on to Bangkok convinced that Sharon was going there to meet Adam.
Adam awoke but the camera was missing, so he returned to the bar looking for Koa, and ran into Phyllis who informed him that Sharon was back in jail and a warrant had been issued for his arrest for perjury. Adam explained what had happened with Koa, and they went back to Koa's room to look for clues and to wait for him to return. Finding a pair of weighted dice, Phyllis and Adam paid a bellman to find a crap game where Koa might show up, and he did. Koa told them that Skye had given him the dice as present, and he had sold Sharon's camera at a flea market. Adam and Phyllis tied Koa to the hotel room bed, and searched the flea market for the camera, which they found, but it was missing its memory chip. So they gave up, went back to the hotel to get Koa to testify at Sharon's trial, but he was gone. Sharon's murder trial began with the famous Vance Abrams as her attorney.
Adam returned to Genoa City where he testified about the video at Sharon's trial, but no one believed him, and Sharon refused a plea bargain. Phyllis stayed in Thailand and bought every memory chip she could find that would fit the camera. She brought them back to Genoa City where she enlisted Malcolm's help to try to find and retrieve the video from one of the erased memory chips.
Sharon was found guilty, but Adam arranged an elaborate escape for her from the courthouse. After subduing her guard in the restroom, Sharon escaped out the barred window which Adam had left cut for her. Sharon headed for Sedona, Arizona where she would eventually meet Adam. Meanwhile, Adam led Phyllis and Nick on a wild goose-chase in St. Maarten.
Sharon called Adam to let him know that she had arrived and was waiting for him at a hotel. But the more Sharon thought about her situation, she decided that everyone would be better off without her, and wrote apologetic goodbye notes to Adam, Noah and Faith, leaving them behind as she drove away. Sharon was carjacked by a man and a woman and left alone on the road. Later, the car wrecked out, the female occupant was killed and badly burned, and Sharon's ID was found nearby.
Adam got on a ferry to St. Barts, but got off leaving Phyllis and Nick while he went to Sedona to meet Sharon. Stranded together on a romantic island in a luxury hotel, Nick and Phyllis made love while agreeing that it was very wrong.
Adam arrived at the motel in Sedona, found the notes that Sharon had left, and was disheartened to realize that she had run away. Adam heard a radio broadcast announcing the accident and that fugitive Sharon Newman had been killed. Adam identified the burned body by his engagement ring, her body type, dyed hair color, and clothes.
Meanwhile Sharon heard the news of her "death", and made it to a ranch in the Arizona desert, where she spent the night in a barn. The owner, Veterinarian, Sam Gibson, woke her up, and she told him her name was Sheri Coleman. Sam asked her to stay and they eventually became lovers. After Sharon's funeral, Phyllis confessed to Jack about her liaison with Nick, and she and Jack broke up.
Once Phyllis found out that Victoria and Billy Abbott's adopted baby Lucy was actually Daniel's and her granddaughter, and remembering what it was like living her life without her child, she decided that Lucy needed to be with her real family. Lauren and Daniel both objected, fearful that the baby's mother, Daisy who was a dangerous fugitive, would hear about it, return, and demand her parental rights. So with Michael and Rafe's legal help, they arranged a private meeting among all parties, and Phyllis was convinced to agree to let Billy and Victoria keep Lucy, provided that she would see Lucy one weekend a month, that Lucy would know Daniel was her father, and that Phyllis would be involved in major decisions in Lucy's life. Meanwhile, Chloe sued Billy for custody of Delia, citing the fact that Billy had bought Lucy on the black market. As the private meeting was coming to a close, a CPS social worker arrived, having found out Lucy was a black market baby through Delia's custody paperwork. Although the adoption papers that Billy gave the social worker appeared legitimate, there had been no background check or social worker involved. Even though Daniel claimed to be Lucy's father and substantiated Billy and Victoria's right to his daughter, Lucy was taken from them until Daniel's claim could be verified with a DNA test. When the test came back positive, due to the ongoing pressure from the Abbotts and his mother, Daniel left to get Lucy, promising them that he would decide what to do once she was safe.
Daniel finally decided to allow Billy and Victoria to adopt Lucy, he relinquished his parental rights, and the adoption was made legal. Phyllis was livid, and wrote a Restless Style blog about Lucy and condemning Daisy, hoping to smoke her out. By doing so Phyllis had disobeyed the court's gag order, and she was fired by Billy. Daisy returned, and Phyllis hired attorney Leslie Michaelson to arrange for Daisy to turn herself in and petition the court to get back her parental rights. Leslie pointed out that Daisy was only accused of the crimes, and that both Victoria and Billy had recently been arrested as well, that Victoria had lost custody of Reed, and Billy's ex-wife was suing for custody of Delia. So Daisy was given back her parental rights, although Phyllis was given temporary custody of Lucy.
Nick bought back Restless Style from Billy, then offered Phyllis the opportunity to work with him again, and she took the job. Their first article together was titled "Was Adam Newman's Love the Kiss of Death for his Fiancée?" It wasn't long before their proximity brought them back to being lovers.
Adam, still trying to clear Sharon's name, found the correct erased memory chip that once contained the video of Sharon attempting to save Skye. That same day in New Mexico, Sharon was recognized by the carjacker and arrested while attending a barn dance with Sam. Sharon was extradited back to Genoa City, and her family was shocked to hear that she was still alive. Adam visited her in jail, elated to see that his Sharon alive, and let her know that he understood why she let them all think she was dead. But later when Adam returned he caught her and Sam in an embrace and realized that Sharon had not been faithful to him. Feeling betrayed, Adam threw the memory chip that would have vindicated Sharon into the creek. Sharon was convicted to serve thirty years in prison without parole. Both Leslie and Phyllis figured out that Adam was withholding the evidence that would clear Sharon, and Phyllis wrote an article exposing him.
In an attempt to foil Victor and escape her mounting number of enemies in Genoa City, Diane agreed to help Adam frame Victor for Diane's murder; meanwhile she would be alive and rich in Switzerland. Diane violated Phyllis' protective order against her and asked Nick to pay her to go away in honor of their past, to which Phyllis countered that it only proved she was a whore. After Diane received a message that the funds from Adam had been deposited in her Swiss bank account, she sent a text message to everyone who had threatened her to meet her at the footbridge in the park. The next morning, viewers saw those same people looking suspiciously like they had just killed someone. Meanwhile Diane's body floated face down in the stream in the park. Murphy went there to fish, discovered the dead body, and called the police. The autopsy results were that Diane had been hit over the head ten times with a blunt object, an impression of a Harvard ring was found on Diane's arm, and a small key was found in Diane's mouth.
Phyllis met Diane, who threatened to post online for their kids to see, the photo of Nick and Phyllis having sex on the office desk. They slapped each other, Phyllis picked up something from the dirt, and one of Phyllis' acrylic nails broke off. During questioning, Ronan noticed that Phyllis had recently had her nails done, and later accused her of being the owner of the nail found at the crime scene. Deacon upon seeing Phyllis for the first time since the murder, told her, "I saw what you did." Deacon began alternately coming on to Phyllis and tormenting her about possibly killing Diane. Phyllis told him that after their altercation, Diane had hidden in the woods, so Phyllis had left.
Victor hired famous New York lawyer, Avery Bailey Clark, to handle Sharon's appeal for the murder of Skye Lockhart. Phyllis met Avery, and intrigued by the name and familiar face, looked her up on the Internet. Phyllis discovered that Avery was her younger sister, the child with pigtails and braces who had idolized her, who Phyllis had left behind when she ran away from home as a teenager. Phyllis went to Avery and told her she wanted her past to stay in the past. Then Phyllis admitted to Michael that Avery was her sister, and he tried to make her understand that he had gone through the same with his brother Kevin and how close they were now, then helped Phyllis get through preliminary questioning by Avery for Sharon's retrial. Avery had to admit to Sharon her relationship to Phyllis, but Sharon agreed to keep Avery as her attorney. Later, Phyllis went to Avery to make amends, but she rebuffed Phyllis. Then Nick walked in on Phyllis telling Avery that Nick was never to find out that they are sisters. Phyllis explained to Nick that she had lied to everyone about her family so that she could forget them. Nick tried to talk Phyllis into getting to know Avery again, but Phyllis refused. Trying to get to know Avery himself, Nick got Avery to admit that while growing up Avery and Phyllis tuned out the drama of their parents by playing video games together – just as Nick and Phyllis had done when they had been together.
Daisy turned up in the same prison wing as Sharon Newman, and met Avery Bailey Clark, who took her case once she realized who Daisy was and her connection to her sister Phyllis. Phyllis was livid when she was served with papers that Daisy wanted visitation with Lucy, and that her own sister would turn on her. Daisy demanded that she get to see Lucy once a week, that Phyllis give her some money, and that Avery get her out of prison, or Daisy would sue and Lucy would be given to someone else.
One evening, a text message was sent from Ronan's missing cell phone to all the Diane Jenkins murder suspects except Adam, telling them to meet him at a warehouse. The suspects gathered and the surveillance tape of everyone's encounter with Diane in the park began to play, revealing everyone's secrets from that fateful night. They hid the tape before Ronan arrived. Adam arrived at a pumpkin patch and surmised that Patty Williams had summoned him. Meanwhile, Genevieve's housekeeper, Myrna Murdock, who had been badly burned when Genevieve's house exploded, lay in the hospital covered in bandages except for a cat tattoo; the same tattoo as Patty Williams. Patty had apparently been posing as Myrna, had been tormenting the suspects with information she had gleaned from the stolen park surveillance tapes, and the explosion at the mansion had kept her from joining them at the warehouse.
Ronan sent Phyllis a blackmail note so she and Nick met him at a warehouse causing Phyllis and Nick to admit their secrets of meeting with Diane the night she died. Ronan took them in for questioning, but later let them go. Phyllis came on to Ronan, who seemed to be interested. Weeks later after catching Nick and Avery in an embrace, a jealous Phyllis called Ronan, and they had sex on her desk.
Avery and Sharon finally got through to Adam that he was being unreasonable by not helping Sharon when he knew that she was innocent. Without the memory chip, Adam thought it would help to setup Heather by getting her drunk and having Ricky take compromising photos of them kissing in Adam's room, which Avery could use to get a mistrial. Ricky showed the photos to Phyllis in hopes of landing a story and a job with Restless Style. But once Ricky got to know Heather better and realized that she had grown up without their father too, and was quite psychologically damaged from her abusive stepfather, he declined to sell them, and only gave the photos to Avery as a last resort to save Sharon.
Meanwhile, Phyllis spotted a memory chip in the evidence dredged from the creek for the Diane Jenkins case on Ronan's desk, and they played it. Just as Avery was about to expose Heather to get the mistrial, Ronan and Phyllis burst into the courtroom, and were allowed to present their evidence. After hearing the audio of Sharon trying to save Skye, the judge left it up to the D.A.'s office. Heather dropped the charges against Sharon, and Sharon was given time served for the escape and was set free. Sharon thanked Ronan, but Phyllis made sure that Sharon knew it was Phyllis who had found the chip, and had saved her. Phyllis stole the photos of Heather and Adam from the courtroom and put them up online with a sensational story about the A.D.A. fraternizing with a witness. Heather was fired as A.D.A. as a result. Ricky filed a lawsuit against Phyllis and Restless Style for using work without payment with Avery representing him, and Avery filed a criminal complaint for theft of evidence from an attorney in court. Nick was livid with Phyllis for once again doing a sensational story without thinking of the collateral damage to other's lives. Phyllis reacted by having sex with Ronan at the police station, and Nick retaliated by having sex with Avery. Ronan received a phone call which played the voicemail of Nick threatening Diane. Phyllis went to warn Nick, and walked in on Nick and Avery, realizing they had obviously just had sex together. Phyllis had it out with Nick, whom she told to go to hell, and that she would never try to help him again. Afterward, Phyllis sought out Avery who informed her that she was staying in town permanently. They argued, and Avery brought up that their father had been wrongly accused of bilking people out of their life savings through a living facility, and that Phyllis had taken sides against him. Later Phyllis was arrested by Ronan for stealing the photos. After Nick tried to get Ricky to drop his charges to help Phyllis, Nick and Phyllis made up once again, but agreed to remain just friends and colleagues. Daisy called Daniel from prison to let him know that Avery was his aunt and that she was helping Daisy get out of prison and to get their daughter, Lucy, back. Daniel confronted his mother about never knowing that she had a sister, but Phyllis refused to discuss it, so he went to Avery for more information but got none.
When Ronan still refused to tell his family anything about why he disappeared after his liver transplant, Nina told him she was finished trying to build a relationship with him, but if he ever wanted one, he knew where to find her. Teary-eyed, Ronan smashed his fist into a display board and ran out of his office, even past Phyllis. Phyllis followed Ronan home, and they connected through their mutual screwed up family lives as well as sexually. Ronan admitted that he owed his family his life, but he didn't know how to deal with it.
On Thanksgiving, Phyllis gave Daisy her allotted time with Lucy. Avery arrived as she was leaving, but the prison went into lockdown, and they were trapped there together. Reminded that it had been Thanksgiving Day when Phyllis had left their home all those years ago, Avery tried to lay a guilt trip on Phyllis about it. Phyllis protested that their dad was a liar, thief, criminal, and master manipulator; and that their mother had brain washed Avery into believing that he was innocent. Phyllis declared that she had been pushed out by their mother, because Phyllis knew the truth and was made to feel like she was the liar and her dad the victim. Phyllis called Avery sanctimonious, and asked why Avery the hot-shot lawyer, had never tried to get her own father out of prison. Avery, in tears, was forced for the first time to admit that she knew their father had been guilty. Phyllis tearfully offered an "olive branch", but Avery just walked out.
It wasn't long before Nick discovered Phyllis writing a story that practically accused Nikki of murdering Diane Jenkins, but this time he fired her. Before Phyllis left town with Lucy to clear her head, she told Avery that Nick may be Avery's now, but not to try to take over the rest of Phyllis' life. After Nick had just fired Phyllis, Billy and Victoria were successful in talking Nick into selling Restless Style back to Billy.
Ricky Williams attempted to get Phyllis' former job with Restless Style but Billy turned him down. So Ricky and Phyllis made a deal where in exchange for the Restless Style website passcode, he would drop the lawsuit against her. Then Ricky published a story to the site claiming that Nikki Newman was the new suspect in the Diane Jenkins murder.
While still enjoying their sexual relationship, Ronan and Phyllis teamed up as detective and journalist to figure out who really killed Diane. Phyllis told him about the video they had seen at the warehouse, who had been in it, and most notably, that Adam and Nikki were not. Later Ronan received an email that was meant to appear to be from Diane with the missing section of video showing Nikki passed out covered in blood next to the bloody rock. After Victor pled guilty and was sentenced to 25 years to life, Nick found out what Phyllis and Ronan were up to, and joined them in their quest for the real killer, giving them full access to the Newman jets and any funding that they needed. Ronan told Phyllis and Nick that he was convinced that the killer was none of the group of suspects, but an unknown person who was messing with them all and him. After hearing that Victor had been sentenced for Diane's murder, Patty Williams was seen by viewers finishing a pillow embroidered with the saying "Alcohol doesn't get you Drunk, Bartenders Do", apparently referring to Deacon. Then she threw it into the fireplace, and watched it burn. Phyllis approached Billy, letting him know that she was working with Ronan and Nick on the murder case, which would make a nice exclusive for Restless Style. Later, she managed to snag her old job back promising an expose on Victor Newman who had just proposed to Sharon.
On New Year's Eve 2011, Nick danced with his date Avery, but couldn't take his eyes off Phyllis who was dancing and necking with Ronan while watching Nick. After Phyllis took Ronan back to her place, Avery accused Nick of not being over Phyllis, saying that she had promised herself she would never be second best to Phyllis again, and called off their relationship. Meanwhile Ronan was accusing Phyllis of using him to taunt Nick, and left her alone at her penthouse. Nick arrived at the penthouse awhile later, their eyes locked, and he and Phyllis made passionate love.
Ronan subpoenaed all of the Diane Jenkins murder suspects, and he and the DA questioned them about the evidence that still did not add up. Deacon arrived in handcuffs saying that Diane had come to him when no one would help her, wanting to back out of framing Victor with Adam because of Kyle, so she asked him to videotape that night in the park. Deacon admitted that after he witnessed Nikki kill Diane in self-defense, he had hit her more times to make it look like someone bigger and stronger than Nikki had killed her, and he was the one who put Diane's body in the creek. Deacon said he had taken the syringe, Ashley's cell phone, and the security camera from the tree, and had hidden them in the alley behind Gloworm, but they had disappeared later. When no one would confess to taking Deacon's stash of stolen evidence or having any knowledge of the embroidered pillows found in Diane's room, the DA arrested them all for obstruction of justice.
They were all released in time for Jack and Genevieve's wedding. But it was Patty who walked down the aisle in Genevieve's stolen wedding gown. Jack pulled the veil from her face, and said, "Emily?" Patty replied, "It's Patty, you bastard," and shot Jack. Patty left as the horrified Abbotts rushed to Jack. Jack was taken away by ambulance in critical condition.
At the hospital, the doctors told the Abbotts that Jack had a lacerated kidney, and the bullet was lodged next to his lower spine as he was taken into surgery. Jack's heart stopped during surgery, he survived, but was left paralyzed, just as he had been when Patty had shot him before in 1983. Abby left to go to Kyle in Lake Placid to tell him about his father. Patty was later captured, and when it was discovered that she had been the missing link in the Diane Jenkins murder, all charges were dropped against all suspects, including Nikki, once Ronan was able to convince the DA that Nikki was not responsible. Deacon remained in jail. Patty was sent to a maximum security prison hospital. Ricky went to Phyllis with his big story with all the dirt on Patty and Jack, but Phyllis said no. She told Ricky that she and Jack were once married, and now friends, and forgodsake, Patty was Ricky's aunt. So Ricky published his story about Patty on a true crime blog, and it went viral.
With the case wound up, Ronan decided it was time to leave town, and ran into Phyllis on the way out. They shared a tender moment where Phyllis tried to get him to show some emotion and say, "Goodbye Phyllis. I will miss you." He finally did, they hugged, and they both were teary-eyed as he left.
Avery was with Phyllis when Avery received a call from their mother that their father had heart attack and was in critical condition. Avery left for Ohio, but Phyllis refused to go with her. After Avery returned, telling Phyllis that their father was dying, Avery retaliated by trying to get Daisy out of prison and to get Daisy custody of Lucy. Phyllis confided in Nick that she was torn, as she had been the one to turn her father in and send him to prison. Nick recalled how he and Victor had painfully gone to see Victor's estranged father before Albert died, and convinced Phyllis to go to Darien and see her father one last time. And just like Albert greeted Victor, George greeted Phyllis with, "What the hell are you doing here?"
Meanwhile Daisy's hearing for a reduced sentence began, with a key piece of evidence, a video which Ryder had made of Daisy pleading with Sarah Smythe for mercy for Lauren and Jana when they had held them captive. Michael cross-examined Daisy, asking why Daisy never called for help or let them go when Sarah wasn't there, and his closing statement begged the judge not to fall for Daisy's supposed rehabilitation. But Daisy was given time-served and put on parole with psychological counseling. Unable to contact Phyllis, Michael called Daniel who went to Phyllis' penthouse and discovered Daisy already there with Lucy. Daniel tried to reason with her that she was only using Lucy, but Daisy claimed that she wanted to be a good person and good mother, and needed Lucy to love her.
George told Phyllis to go home, that she had ruined him, and if she hadn't blown the whistle on him, he could have repaid his investors. Phyllis countered that she came to him first but he had lied to her, and even knowing that her family would turn against her, she turned him in because she didn’t want a conman for a father. Phyllis begged George to tell the truth before he died to give her peace of mind. With Avery listening outside the door, George admitted that he had bilked his clients out of their life savings. George tried to cover but Avery finally realized that Phyllis had been right about him all along, and Avery told him how disappointed in him she was. Avery and Phyllis left his room to talk, and Avery realized that even their mother knew the truth as George died alone. Avery begged Phyllis to forgive her, saying the past was over, and they didn’t have to hurt each other anymore. Phyllis softened toward her, but said it was too late now that Avery had gotten Daisy released from prison, and declared war if Daisy got custody of Lucy. Daniel arrived after George had died and his mother and aunt had left, but he went through a box of George's things, finding photos of Phyllis and Avery as children. No one attended George's funeral. As executor, Avery paid claims from her father's estate to the people whom he had bilked, which left nothing but an envelope bearing the name 'Phyllis'. Phyllis reluctantly opened it to find Black Beauty, the book that George used to read to her when she was a child, but Phyllis refused to be swayed by the gesture.
During her capture, Patty had told Ricky that Adam had been the one who helped her escape from Windcliff. Ricky took the story to Phyllis who bought it. She published it in Restless Style with no credit to Ricky, the cover featuring a red-faced, devil horned Adam with "Satan's Understudy hits the big time." Paul confronted Phyllis and Ricky for exploiting Patty, saying they were as bad as Adam.
Nick decided to reconcile with Phyllis, telling her that it was a mistake getting involved with Avery. Nick promised he would never abandon Phyllis again for Sharon or Avery or anyone, and was ready to make a 100% commitment.
Avery refused to represent Daisy anymore, but Daisy went to a judge to return her parental rights, brought a police officer along to seize Lucy from Phyllis, and later got a restraining order against Phyllis. Daniel was finally convinced to claim his parental rights to Lucy to keep her from growing up with Daisy. But Daisy was encouraged, and assumed that she and Daniel would end up together and become a family, so she gave her consent. After the hearing Daniel told Daisy that she was delusional, that she had just helped him to be able to sue for custody. Daisy convinced Ricky Williams that she innocently wanted to be a mother to her child and that Phyllis and Daniel were out to get her, so she and Ricky became involved, and Ricky vowed to keep Phyllis, with whom he had is own grudge, from winning. The day before Lucy's custody hearing, Ricky snatched Lucy while in her father, Daniel's, care. After a frantic search by Daniel, Ricky returned her, claiming to have found her in the parking lot. Ricky knew that once this incident came out in court, Daisy would be allowed to keep Lucy. After Daniel lost the custody case, Phyllis fired Ricky, knowing that he had been behind it, only making Ricky more intent on finding something in Phyllis' past to expose and make a name for himself.
Nick surprised Phyllis by asking her to marry him again, and she surprised him with the news that she was pregnant. They began planning a small wedding with Avery as maid of honor and Noah as best man.
Looking for dirt on Phyllis, Ricky, as a reporter, got an interview with her former husband, rock star Danny Romalotti, who refused to discuss Phyllis, had him escorted out by security, and tipped her off. When questioned by Paul, Phyllis told him that Ricky was a little off and sneaky.
Ricky also got into Restless Style and uploaded an app to spy on Phyllis through her laptop, where he later saw Phyllis and Danny argue about their past marriage and her rivalry with Christine. Daisy got Ricky into Phyllis' apartment where Ricky found a business card for Dr. Tim Reid, her former psychiatrist. Ricky found Tim in Kenosha, Wisconsin, called and told him that he was researching an unauthorized biography of Phyllis Summers. Tim told him that he was better off handling a rattlesnake, that he never wanted to hear her name again, and hung up on him. So Ricky visited him in Kenosha, where he found the former doctor living out of packing boxes in a dingy apartment, and working as a security guard at an industrial plant. Plying Tim with a bottle of fine wine, Tim opened up, saying that Phyllis had been like a siren who had drawn him in until she wrecked his life, that she pretended to care about him, and that they had even been engaged. Tim said that Phyllis had driven him to rage, revenge, and jealousy because all she really wanted was Danny, and was consumed by her hatred of Christine. While Tim excused himself to the bathroom, Ricky took Phyllis' file out of the patient file boxes that littered the room. Tim realized that he had taken it after Ricky had left, but rationalized that Phyllis "deserved everything she got".
Ricky began reading Phyllis' file from when Tim was seeing both Phyllis and Danny for court-mandated marriage counseling. The notes described her as independent, intelligent, and defensive, and said that Danny had bitterly alleged that she drugged and raped him to become pregnant with Daniel to trap him into marriage. Tim wrote that Phyllis saw Christine not merely as a rival but an existential threat, despite the fact that Chris had been involved with Paul. Tim described Phyllis as delusional in thinking that Danny actually loved her, and devastated when she lost custody of Daniel. As Ricky was reading of how Phyllis had seduced Tim, Tim phoned Ricky. Tim said that he knew that Ricky had Phyllis' file, and tipped him that to expose her, he should check out what Phyllis was up to during Christmas of 1994. After Tim later disappeared, Phyllis admitted to Avery that she had paid Tim to disappear.
From the rental car receipt evidence that Ricky had gotten from Tim Reid, Daisy discovered that Phyllis had been the driver of the rental car who had run down Paul and Cricket back in 1990, and she confronted Phyllis with the fact. Daniel overheard, and was aghast at what his mother had done. Phyllis had to confess to Daniel, but claimed it had been an accident, that she had only tried to scare Christine after she had seen her kissing Danny, bur her foot had hit the accelerator instead of the brake. Daisy used it to blackmail them into treating her as they should treat Daniel's wife.
On Phyllis and Nick's wedding day, while family and friends awaited her arrival at Gloworm, Daisy visited Phyllis and offered to tell her about Ricky's plot to take her down. Phyllis rebuffed the offer, called Daisy names, and threw her out. Then Phyllis began to lose her baby, doubling up in pain, and calling for help. Daisy heard her from the hallway, considered her options, then walked away. When Phyllis did not show up for the wedding or answer her phones, Nick went home and found her in her wedding gown on the floor where she had lost their baby, and he took her to the hospital. The next day, Nick and Phyllis were married by Katherine at the penthouse with only their children, Summer, Daniel, Faith, and Noah in attendance. The next day Phyllis and Daniel discovered from the security guard that Daisy had heard Phyllis calling for help and walked away. Daisy denied it when confronted. Nick, Daniel, and Phyllis all began plotting to somehow get rid of Daisy. Meanwhile Daisy went to Ricky offering to help him get revenge on Phyllis.
Later left alone in Ricky's room, Daisy discovered a video on his laptop which showed Ricky drowning his former girlfriend Rachel in the bathtub. Shocked, Daisy slammed the laptop shut and left, making excuses as Ricky returned. Ricky opened the laptop and realized what Daisy had seen, and he deleted the file. Outside, Daisy called D.A. Michael Baldwin, asking to meet him in an alley to disclose some important information. Ricky met Daisy in the alley instead. Michael later found only Daisy's scarf in the alley. The next day in his room, Ricky removed Daisy's wallet and cell phone from her purse, remarking that he was relieved to see nothing in the paper about "poor little Daisy". Ricky began using Daisy's credit card to charge pizza and bus tickets in Canada posing as Daniel, making it appear that Daisy was on the run. That plus Daniel's blood being found on Daisy's scarf, and an email to Kevin from Daisy telling him that she feared Daniel and asking Kevin to raise Lucy if anything happened to her, caused Daniel to be arrested for suspicion of murder, but Daniel was released for lack of evidence. Ricky Williams had actually murdered Daisy. Then Paul had to shoot Ricky when he tried to kill Eden, and Ricky died when he fell through a window. When Daisy's wallet and cell phone were found to have been dumped by Ricky, Daniel was excluded as a person of interest in her disappearance, but Paul was arrested for first degree murder.
Among Ricky's belongings Christine found Phyllis' psychiatric file from Dr. Tim including the rental car receipt, and realized that Phyllis had been the driver of the car who run them down in 1994. She showed it to Paul, and Paul told Nina and Heather who were shocked. Roman and Michael found a copy of the receipt in Daisy's wallet, and verified that the VIN number matched the rental car used in the hit and run. Both Chris and Michael confronted Phyllis, who denied trying to kill them. Although the statute of limitations had run out, Christine remembered that she had been working on a federal case at the time, therefore Phyllis was arrested for attempted murder of a federal agent.
Avery offered to help Phyllis, who lied and told her that she was innocent. But Avery saw through her, using same evasions that their father had. Phyllis finally confessed to Nick, saying that it was a mistake which she regretted. Although Nick moved out at first, he moved back when Summer told him how they needed to stand by Phyllis.
Phyllis was arrested at Crimson Lights in front of her family. Avery offered a deal for aggravated battery with two years probation, but Christine refused to consider anything without prison time, and offered five years. Avery got Phyllis released on bail. Nick, Daniel, Summer, and Noah welcomed Phyllis home, ready to stand behind her, Nick being convinced that she had changed since then.
Phyllis wanted to write a Restless Style article to plead her case, but Billy fired her instead, explaining that the L.A. people would pull the plug on their TV show if she was not fired. They also wanted Phyllis on the next cover, and to be crucified in print and in the pilot show. After hearing about it, Nick slugged Billy, which was caught on tape.
Ronan tracked down Tim from Tim's landlady/girlfriend Beth's phone records, and found Tim lying on a beach in the tropics. Tim admitted that Phyllis had paid him to leave town, and that Ricky had stolen Phyllis' patient file. Heather asked Tim to counsel Paul about Ricky, and he did his best to reassure Paul that Ricky had never been a threat to him, but was probably genetically disturbed as were both his mother Isabella and his aunt Patty. Tim then began blackmailing Phyllis for more money, threatening to turn over the 20 year old recording of her admitting to running down Paul and Christine. When Avery found out that Phyllis had been paying off Tim, she refused to represent her, so Phyllis got Leslie Michaelson, now a partner in Vance Abrams law firm, to take her case. Phyllis paid him off by borrowing from her daughter Summer's trust fund, but he still wanted sex before he would leave her alone. Phyllis arranged to meet Tim at her apartment while Nick was at a board meeting. While Phyllis left the room, Tim took a handful of Viagra washed down with a glass of fine wine. When Phyllis returned in a negligee, Tim had a heart attack and fell to the floor dead. Kevin Fisher happened by, and Phyllis enlisted his help in returning the dead body to Tim's apartment. Tim was later discovered dead by Ronan. The coroner determined that the body had been moved after death, so Phyllis became the prime suspect. Kevin used this leverage to get Phyllis to come to work at TagNGrab, and to endorse the site.
Phyllis confessed to Ronan what had happened with Tim. When the police discovered Kevin dumping Phyllis' stained rug in a dumpster, Ronan intervened, the rug disappeared and Kevin was allowed to leave. Then Michael showed up to seize Phyllis' computer, and when she refused, he sent Ronan for a warrant. But Ronan returned without it, and instead gave Phyllis an alibi saying that she was with him the night of Tim's death, because they were having an affair. To keep Michael from telling Nick about the "affair", Phyllis told Nick everything, and he played along by later publicly slugging Ronan. But later Nick confronted Ronan asking why he would risk his career for Phyllis, and Ronan claimed to be in love with her. That, plus Summer reacting to news of the "affair" by spiking her drink with alcohol, forced Nick to move out and back to their former house at the ranch, and Summer left with him. But when Victor was reported dead, Phyllis was there for Nick, and they held each other in his grief. Victor later returned alive and well explaining that he had fallen from a horse and lost his memory.
Meanwhile Daisy was checked out of the sanitarium by someone claiming to be "her mother". Security tapes showed the woman who signed as Sheila Carter to be heavily disguised and unrecognizable, and the doctor was unable to identify her as either Phyllis or Sheila.
As Phyllis became more afraid of being convicted, and feeling alone with no one by her side, she gave in and made love with Ronan, who was infatuated with her. When Nick found out, he filed for divorce, and he and Summer moved back to the ranch.
The judge was taken ill as Phyllis' trial began, and he was replaced. After looking over the case file, the new judge dismissed the case, citing the fact that Christine was not a Federal agent at the time; therefore the statute of limitations had run out, and Phyllis was set free. Afterward, Nick told Phyllis he was filing for divorce and Ronan that he could have her. Christine tried to enlist Paul's help in getting even with Phyllis and filing a civil suit, but Paul wanted to let it go and let everyone get on with their lives.
After gaining Adam's share support and teaming up with Tucker, Jack took the opportunity for a hostile takeover of Newman Enterprises. He offered Phyllis a job as vice president of research and development at Newman. Phyllis broke things off with Ronan for her daughter's sake. She told Nick about the job offer from Jack, offering to spy for Nick to get Newman back. Nick told her he didn't want Newman back, and to move on with her life. Phyllis finally realized it was over, and there would be no more second chances from Nick. She met with Jack and accepted the job. After Jack collapsed in pain in Phyllis' presence, she took him to the hospital where they told him the bullet had moved dangerously close to his spine, and could cause paralysis or death. Phyllis convinced him to get the surgery, and Jack trusted Adam to take over at Newman until he recovered. The surgery was successful. Phyllis agreed to stay at the Abbott's so that Jack could be released. Although told to take it easy for a few days and in severe pain, Jack called Sarge to start physical therapy again. But Sarge told him to get into bed, call him in a few days, and left. Of course Jack would not slow down, doing business from his living room and popping pills to kill the pain. Jack and Phyllis began to bond again. Jack told Phyllis that although he felt guilty over firing Nick and Victoria, and putting Billy in an impossible position, he felt like the King of the World. Phyllis told Jack the reason he had the affair with Ronan was because she just wanted to know that someone cared. After Phyllis left the room, Jack took a handful of pills for his increasing pain, and he began a downward spiral into addition to painkillers.
Concerned that Jack had become addicted to pain killers, and he would lose the only parent he had left, Kyle got Phyllis, Billy, and former alcoholic Neil to help stage an intervention. But Jack claimed they had insulted him, fired them all, and threw them out of his house.
Daniel returned with Lucy, but only to pack up their belongings and say goodbye. While in Chicago during the holidays Daniel had been offered an art showing in Savannah, GA, and he and Heather had decided to move there for the duration. Phyllis was heartbroken and intended to go with him to help them settle in, but an emergency with Jack made her realize that she could not go. Jack had finally hit bottom, was ready to go to rehab, and needed Phyllis.
Phyllis went to the Abbott cabin with Jack, assuring him that she was not going to let him fail to detox. Dr. Lee was unable to get there to help, so Phyllis had to suffer Jack's withdrawal hallucinations and rage. Dr. Lee finally arrived with medication to make the detox easier for Jack. Jack caught Victor's investigator snooping around the Abbott cabin, and the guy confessed Victor's plans, agreed to help Jack, and told Jack that Stephanie was the daughter of Congressman Wheeler. Jack confessed to Phyllis about Stephanie. Back home again, Jack felt compelled to confess to Michael the D.A. Remorseful about taking over Newman, alienating friends and family, and firing people, Jack admitted that he was not a man John Abbott would have been proud of. Jack told Phyllis, Billy and Adam that he was walking away from Newman, leaving Billy and Adam in charge as Co-CEO's, and returning as CEO of Jabot. The D.A.'s office decided that Jack was not responsible for Stephanie's death, and after speaking with Congressman Wheeler that he wanted it kept out of the press as well.
Jack thanked Phyllis for saving his life, and told her he felt they were ready to renew their past relationship. Phyllis declined, having just received her divorce papers from Nick to sign. After Jack's drug dealer showed up and left a pack of pills to tempt him, Jack asked Neil to be his sponsor, and let Phyllis get rid of the pills.
After Paul interrupted a second attempt at suicide, Jamie told Paul about being bullied by Summer and Fen, so Paul visited Phyllis and let her in on what had been going on. Phyllis and Summer had a heart to heart, and they seemed to be on the road to understanding that they were so much alike.
Despite Phyllis' continually "just friends" posture, she enjoyed a surprise Valentine's evening candlelight dinner and dancing with Jack at Abbott manor. She eventually ended up in bed with Jack, still protesting that she was toxic, not good for him or anyone. Jack named the newest Jabot fragrance, Scarlet Mist, in honor of Phyllis. Jack admitted to Phyllis that he was falling in love with her again, and they planned a trip together to Istanbul. Ashley came to town to attend Victor and Nikki's wedding, which she missed while lecturing Jack about her disapproval of him getting involved with Phyllis again. Phyllis pointedly reminded Ashley that she was the one who stood by Jack and nursed him through his detox, not Ashley. Jack took Phyllis for a relaxing romantic trip to Istanbul, and finally talked her into moving in with him. Summer approved, hoping it would mean that she could live where Kyle lived, at Abbott Manor. Claiming to want to be close to Phyllis and put off by Avery's presence in Nick's life, Phyllis asked Jack if Summer could move in too, and he reluctantly agreed. But Phyllis was livid to return to news from Avery that Avery and Nick were engaged.
Upon hearing that Jack and Phyllis had reunited, and Phyllis had moved in with him, Traci returned for an extended stay at Abbott Manor. Traci tried to convince Jack that Phyllis was only going to break his heart again, but Jack warned her that if she was only there to break them up, she needed to leave. Overhearing them, Phyllis became determined to prove Traci wrong. But Phyllis later moved out, telling Jack that they were moving too fast. Phyllis returned to her penthouse finding that Summer had thrown a party there instead of going to the prom with Fen, and she broke up a fight between Fen and Kyle.
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