Discussing her feelings for Eric with Lauren, Stephanie admits her fear that Eric is seeing another woman. Lauren insists that Eric wouldn't do that. Stephanie continues to downplay the possibility of a love affair with her ex- husband but Lauren reminds her that her dreams have come true before and urges her to go after Eric. After Lauren leaves, Eric arrives and surprises Stephanie by ordering her to get dressed because he's taking her out to dinner. In Brooke's office, Ridge angrily warns Grant and Connor that Brooke would never sign a document giving Grant her control of Forrester but Brooke reveals her decision to give this matter some thought before acting. After Grant and Connor leave, Ridge warns Brooke that she's allowing Grant to take advantage of their relationship but Brooke insists that Grant has been a good and trustworthy friend. When she asks him why he isn't with Taylor, Ridge suddenly remembers his date with her and runs out. Upset that Ridge is so late, Taylor finally calls Forrester and hears from Megan that Ridge has been in Brooke's office with a demand that they not be disturbed. Angry and feeling betrayed, Taylor pops the champagne open and eventually drinks most of the bubbly. She heads to her house but stumbles along with the way, knocking over a lantern which sets the house on fire as she falls to the floor, unconscious.
Eric brings Stephanie to the Cafť Russe where she asks him why he's asking her out tonight. Eric claims that he simply wanted to be with her. When Stephanie hints that she thinks he's seeing someone right now, Eric finally admits that he was dating but the woman broke it off. He then changes the topic of conversation and invites her to the dance floor. Lauren arrives and takes a seat at the bar by herself only to become upset when she spots them dancing.
Thorne arrives at the beach where Ridge was to have a picnic dinner with Taylor. He finds no one there but then spots flames coming from Taylor's beach house. He rushes to the house and bursts through the flames to find Taylor and carry her to safety. He calls 911 and then returns to comfort Taylor but reels in horror as he finally looks at her horribly burned face. The ambulance finally arrives and rushes Taylor and Thorne to the hospital. Ridge arrives later but can't find Taylor. The firemen can't help since they don't know where she was taken. He calls Stephanie who has just returned home and reports on the fire. Thorne asks at the desk how Taylor is. The doctor reports that she's been burned badly but allows Thorne to visit her for a minute after explaining that his efforts at her house saved Taylor's life. He is shocked at the sight of her bandaged face. Taking her hand, Thorne assures Taylor she will be okay.
Grant arrives at home and surprises Brooke when he starts massaging her neck and though she responds to his gentle touch, she pulls back when he suddenly starts kissing her. Reminded of Thorne's statement that Ridge will soon be free from Taylor, she explains that she can't make love to him tonight and heads upstairs while Grant remains determined to consummate his marriage.
Stephanie reveals to Claudia the call from Ridge about Taylor and the fire at her beach house. She confides her concern that her son wasn't with Taylor as he should have been.
Thorne tries to comfort Taylor as she lies in her hospital bed with her face wrapped to protect her extensive burns. He explains how he found her in her burning beach house and carried her to safety before calling the fire department. She finally remembers how upset she was with Ridge for failing to show for their beach date because he was with Brooke. Complaining about Ridge's betrayal, Taylor removes her engagement ring and hands it to Thorne, asking him to give it back to his brother and tell him that she never wants to see him again. After countless phone calls, Ridge finally locates the hospital where Taylor is being cared for and rushes in, demanding to see Taylor. Thorne greets him with the news that Taylor doesn't want to see him.
Maggie visits Lauren when she goes to get her car. Maggie asks if anything has happened while she was away. But Lauren doesn't know of anything. Lauren tells Maggie that Ridge and Taylor are supposed to set a date tonight.
Thorne and Ridge argue about Ridge disturbing Taylor. Ridge threatens Thorne so Thorne will tell him where Taylor is. But Thorne won't budge. The doctor breaks up Thorne and Ridge before they get out of hand. Ridge asks if Taylor will be all right.
James thinks about being a father. He can hardly wait. Sheila tells James that she thinks he will be a great father. Sheila just wants best for their baby. Sheila tells James she has a special home movie for them to see. James is skeptical.
The doctor tells Ridge that Taylor has both first and second degree burns. The doctor lets Ridge know that Thorne saved her life. Thorne tells Ridge what happened with the accident. He lays into him for being late.
Maggie lets Lauren know that she refuses to let Sheila come between her and James. She doesn't think that James will like a big fat woman since Sheila should be getting bigger soon. Lauren warns Maggie not to trust Sheila. Sheila always has something up her sleeve. Maggie believes in her husband. She leaves to go surprise her husband. Meanwhile, Sheila turns down the lights to set the ambiance for the movie.
Thorne blames Ridge for Taylor drinking and setting the house on fire.
James and Sheila watch an ultrasound of their baby. Maggie comes in and sees them bonding over the baby. Sheila tells him she wants to give him a happy baby. Maggie is shocked by what she sees.
Thorne tells Ridge that Taylor knows why he was late. Thorne says, "If she had to rely on you, she'd be dead." Thorne orders Ridge to leave. When Ridge tells him that she is his fiancee, Thorne says "not anymore." Thorne pulls out Taylor's engagement ring and tells him Taylor doesn't want it anymore. Thorne says, "She's through with you, Ridge." Thorne walks off.
Spectra gets ready for Lauren's arrival. Lauren tells herself that she has to move on as she knocks on Clarke's door.
Eric tells Megan to track down Ridge for the business meeting for designers. Grant wonders why Enrique is at a designer's meeting. Eric then informs Enrique that he has been promoted to designer and that will entitle him to a raise. Grant is outraged when Eric tells him he is Enrique's mentor. Eric tells Grant to make the changes on a design the way he specified.
Maggie wakes up looking very ruffled only to find Sheila has made James breakfast and is waiting on him hand and foot. When James says he has to leave Sheila gets his briefcase for him and tells him she put in some fruit because she knows how much he likes it. Maggie sighs and looks very worried.
Sally welcomes Lauren to Spectra. She introduces everyone to Lauren. They have a business meeting. Macy suggests they have a press conference at a hotel. Lauren looks distracted. Clarke gets the contract out for Lauren to sign. She sits to sign them and stops, saying, "I can't! I need more time." Sally tells her she can use the office to think it over and they all leave.
Maggie gets frustrated when she can't find the tea. Sheila says, "We moved it over here. Anything you need help with just let me know." Maggie lets Sheila know she saw them watching the ultrasound. Sheila and Maggie argue about James and Sheila sharing something that Maggie couldn't understand. Sheila tells her that obviously she agrees or would have chosen to interrupt them watching the video. Sheila tells Maggie that she was hoping Sheila would revert back to her old ways and then she would know that James would want nothing to do with her.
Eric wonders what happened with Lauren. He wonders if he said yes to her designs if things would turn out differently. He fantasizes about what things would've been like if he had accepted her designs. In his fantasy, he gives her a ring and asks her to marry him. Of course, she says yes.
Lauren wonders how she can forget Eric. Clarke walks in and sees that Lauren has been crying. Clarke says, "Just thought I would check to see how you were doing. Looks like a good thing I did."
Maggie tells Sheila that she is diluting herself if she thinks James wants her. She lets her know that once the baby is born, she is out. Sheila tells her that a child has a right to be loved by both of the parents. Maggie reminds her that she told James that it is either her or Sheila. Maggie says, "I haven't changed my mind and neither has James." Maggie leaves the roof in a huff. Sheila says to herself, "You or me. All right Maggie, if that's the way you want it."
Enrique asks Grant what he is up to. Grant tells him to back off. Before Grant storms out of the office, he says, "I will not work this way!"
Clarke tells Lauren that he will do anything to keep her happy professionally or otherwise. He tells her that they can make fashion history. He tells her that she will forget all about Eric. There is a long silence before she tells him he has a new partner.
Megan tells Eric that Ridge just called and Taylor has been in a fire. He is to meet Ridge at the house. Eric is in a hurry to get home, but Grant wants to talk about the changes. Megan tells Grant that none of the Forresters are in the office. Grant says to himself, "I've had it! Time to make my move. If they are too busy to run this company, fine. I will make this company all mine."