At Jabot, Diane yelled a warning at Phyllis to back off. Jack entered and told Diane to tone it down. He said Kyle and Summer had made their position very clear, and had they'd walked in, Phyllis and Diane would have been out of a job. Diane wanted Jack to accept her apology for her outburst, and she left. Jack said he could see it was killing Phyllis not to gloat. He told her to be happy that neither Summer nor Kyle had seen that. He said Phyllis wasn't off the hook.
Mariah and Tessa arrived at the coffeehouse and saw Kyle and Summer negatively critiquing something on their tablet. Tessa and Mariah believed Kyle and Summer were critiquing Tessa's photoshoot. Mariah assured Tessa it would be fine.
Mariah and Tessa greeted Kyle and Summer. Tessa asked if her photoshoot had been a complete waste of time. Kyle and Summer said they hadn't been looking at the Marchetti photoshoot, which had been fantastic -- and problematic, because Summer couldn't choose which photos should be in the layout. They said the photos had all been that good.
Kyle told Tessa and Mariah they'd been looking at different concepts for their vow renewal. Noah arrived. Kyle said they were celebrating their impending wedding redo. Summer asked if Noah would be bringing Allie as his date. Noah told Tessa and Mariah he wanted to talk to them about Allie, and they left. Summer and Kyle found that very strange, and Summer asked why they hadn't been included in Noah's discussion. Phyllis arrived and told Kyle and Summer that something had happened. At that moment, Kyle received a phone call from Diane.
At the Abbotts', Allie told Traci that Ashley always made sure she had special projects to work on. Traci asked if that was true, even with Diane and Phyllis there. Allie said she merely kept her head down and focused on her work. Traci said when Phyllis and Diane were together, something was bound to explode.
Allie told Traci that Phyllis and Diane were a handful, but they hadn't been a problem for her since she'd stood up to them. Allie said she loved being in the lab. Traci said Ashley always found the lab a peaceful place to work. Allie said she was in awe of everything Ashley had accomplished, and working in a place where Keemo had found so much joy was more than she could have dreamed of.
Traci asked why Allie was home and not at the lab. Allie said she couldn't tell Traci anything, and she promised she hadn't done anything wrong. Traci said the mystery had piqued her curiosity. Allie said all would be revealed when Noah arrived. Traci was delighted that Allie had found happiness at work and in her personal life. Allie thanked Traci for advising her to allow herself to be happy. Allie said it felt great to be with family again.
When Tessa, Mariah, and Noah arrived. Noah told Traci they were planning a surprise for Kyle and Summer, and they could use Traci's help. Noah said it was going to be a surprise pre-vow-renewal party at his new club later that evening. Noah asked Traci to be the decoy and lure the guests into the club. Traci agreed.
Noah told Traci that obviously, Phyllis would be there, and Mariah asked if they should include Diane or if they were just asking for trouble, putting Phyllis and Diane in the same room with a throwable cake. Allie said she had another option; she suggested they stagger the times for Diane and Phyllis to be there. She said they should bring in Diane first because it would be easier for them to get her to leave, and then they could bring Phyllis in. Everyone loved that idea.
Jack arrived at the park and encountered Diane in tears. Diane told Jack that whatever he wanted to say wasn't necessary because she was already beating herself up for what he'd overheard. She said she'd really screwed up. Jack agreed. She admitted she'd been hiding her feelings for a long time. Diane told Jack she'd had a borderline threatening conversation with Victor, and she'd had another run-in with Phyllis. She said that for all she knew, it had cost her the job she loved and a chance to be closer to Kyle. Diane said she hated when she allowed people like Victor and Phyllis to get to her, but she hated that she'd brought it all on herself.
Diane pulled out her phone and told Jack she was going to call Kyle because he deserved to know the truth. She asked how she should tell Kyle what an idiot she'd been to have had a fight with Phyllis in the office when she'd known better. She hoped Kyle could forgive her. Jack said he had no intention of telling Kyle about Diane's run-in with Phyllis. Jack said the situation involved Diane, Summer, Kyle, and Phyllis, and he couldn't be the one to instigate issues at Marchetti. Diane said she respected that, and she felt terrible that Jack had had to witness her meltdown.
Jack told Diane she'd been careless about anyone and everyone who worked with her overhearing her. Diane said it was another reason she needed to come clean, but Jack said he didn't think anyone had been nearby. Diane said it didn't matter if Jack carried her secret to the grave; she would know, and it would impact her interactions with Kyle. She said she had to be honest with Kyle. That was the only way their relationship could work. Diane said she was going to tell Kyle how horribly she'd behaved, and Kyle would have to decide how to deal with it.
Diane, Jack, Summer, Kyle, and Phyllis gathered in Jack's office. Diane immediately assumed Phyllis had wasted no time in sharing with Kyle and Summer what had happened earlier. Phyllis said she felt they had the right to know. Diane said she'd asked Summer and Kyle to meet her there so she could own up to what had happened. Phyllis said Diane was just saying that because she'd been caught. Jack said he'd been with Diane prior to the phone call, and Diane had been very remorseful.
Diane told Kyle and Summer that what she'd done had been indefensible, and her behavior had been out of line. She apologized. Diane said that after sharing that her priorities were in the right place, she'd lost her temper. It had been unprofessional and uncalled for, and she was truly sorry. Phyllis asked if that was when she applauded, because Diane's performance was truly remarkable. Diane said she wasn't going to make a last-ditch plea to save her job -- a job she'd grown to love because working with Summer and Kyle had been a dream. She said she was going to officially resign.
Phyllis said she wanted to congratulate Diane for doing the right thing and stepping down after that very embarrassing outburst. Kyle asked if Diane was sure that was what she wanted to do. Diane said she'd agreed to Kyle's terms, and she'd violated them. She asked how Kyle could trust her again if she didn't keep her word. Kyle said the agreement was that Phyllis and Diane would be terminated if there were any more infractions, and they'd meant it. Summer said Diane had resigned because of an argument with Phyllis. Phyllis was incredulous and asked if they were saying she needed to resign, as well.
Phyllis told Kyle and Summer it hadn't been her fault, and she hadn't provoked Diane. Summer said they were aware of what had happened. Phyllis said Diane had resigned because Diane knew she'd done the wrong thing, and Phyllis shouldn't have to resign, as well. Summer reminded Phyllis about the agreement: it didn't matter who did what to whom; they would both be out. Phyllis asked if she'd sealed her fate when she'd gone to inform them about what had happened. Under her breath, Diane said no one liked a tattletale. Kyle asked what Diane had said. Diane said Kyle had made the terms of their employment crystal clear.
Diane told Kyle that Phyllis hadn't grasped the concept of what Kyle had said, but she respected that Summer and Kyle had meant what they'd said as senior executives of Marchetti. Phyllis said she had the utmost respect for Kyle and Summer, and she didn't believe that some arbitrary rule would stop them from doing the right thing. Kyle said that he and Summer were sorry to see Phyllis go because they'd both been assets to the company, but it seemed the situation was inevitable. Phyllis left. Diane left seconds later.
Jack said he knew it hadn't been easy for Kyle and Summer. Jack asked if they were teaching Diane and Phyllis a lesson or if Marchetti was saying goodbye to them forever. Kyle said there was no possibility of Diane and Phyllis playing nice. Summer said it was sad because they'd both been doing really great work. Summer said Phyllis had been a perfect fit for Marchetti Home.
Jack suggested that Kyle and Summer allow Diane and Phyllis time to stew and then offer both of them one last chance. Summer asked if Jack was serious about giving Phyllis and Diane one last chance. Before Jack could respond, he received a text message from Traci, and he left.
Summer told Kyle she thought Jack was a pushover. Kyle said perhaps they'd scared Phyllis and Diane straight. Summer said it was the only way their moms would learn, and they had to be firm. Kyle asked if the collateral damage to Marchetti was worth it to prove a point. Summer pointed out that if they let their moms off the hook, they might never take anything seriously again. Kyle said they needed to see what their moms were up to since they'd left. He said if they were crafting apology letters, they could talk; if they were planning on waging war, they were out of chances. Summer agreed.
At the coffeehouse, Summer told Phyllis she was sorry about how things had worked out. Angry, Phyllis said Summer was her daughter and should have been on her side, but instead, Summer had fired her over something Diane had done. Phyllis said Diane had lost her mind, and it didn't seem to matter that Diane couldn't get over the hatred for Phyllis. Phyllis said Diane was constantly playing mind games, but Phyllis was paying the price.
Summer reminded Phyllis they'd laid out the zero-tolerance policy less than 24 hours earlier. Phyllis said it didn't matter because Diane's hatred for her went back decades. Summer said she understood why Phyllis felt the way she did about Diane, but Phyllis had given her word that she would keep the peace. Phyllis stated that she'd kept the peace; Diane hadn't. Phyllis said it was ridiculous that if one mom was bad, the other mom should be fired, too. Summer said it was the behavior that wasn't acceptable. Phyllis said it was Diane's behavior that was unacceptable.
Summer said if Phyllis had wanted to keep the peace, she could have quashed the conflict by either walking away or ignoring Diane, but Phyllis hadn't. Summer said that as much as she loved Phyllis and felt bad for what Phyllis was going through, she and Kyle were trying to run a major fashion company. Summer said they were dealing with time differences and creative differences, and it seemed like they were dealing with mom issues on a daily basis. She said those were a distraction, and she wasn't going to talk about the mysterious file that had shown up on Diane's computer.
Summer told Phyllis that whether it had been diabolical or not, Summer had needed to take time out of her day to deal with it, and that was a problem. Summer begged Phyllis to see the bigger picture. Summer received a text message from Noah, asking her to meet him at the Grand Phoenix. Phyllis said she'd go with Summer, but Summer suggested they sleep on it and talk in the morning. Summer left.
Phyllis remained at the coffeehouse, and in her thoughts, Phyllis said Diane was "so sweet, innocent, and humble" but was getting the better of Phyllis. Phyllis claimed she wouldn't let Diane win. She claimed everyone wore blinders, and she needed to get Summer to open her eyes and look at things from her perspective. She felt Summer needed a little nudge to see Diane was the one who'd been wrong. Phyllis left.
At Society, Kyle told Diane he was proud of her. He agreed she'd been wrong, but she'd made the right decision afterwards. Diane said she'd had no choice but to resign. She said part of her therapy had been to own her actions, and she hoped it hadn't changed the way Kyle saw her and that it wouldn't have any effect on her relationship with Harrison. Kyle said it had been business, nothing more, and it would stay that way unless things escalated. Diane said she had no intention of that happening.
Diane told Kyle that after losing the job she loved, she was more resolved than ever to be better. Diane asked if Phyllis had officially resigned. Before he could answer, Kye received a text message from Mariah: "Meet me at the Grand Phoenix. Important. Bring your Mom."
The Grand Phoenix was in darkness when Summer, Noah, and Diane entered. Suddenly, the lights came on, and everyone yelled, "Surprise!" Kyle asked someone to explain what was going on. Noah said the party was for them in honor of another wedding. Summer and Kyle thanked everyone. Noah said, "Let's party," and the music and the mirror ball were activated.
Summer took Noah to one side and said she saw Kyle's parents there, but she asked where hers were. Noah said Nick would be there shortly, and they'd thought it might be prudent to avoid tensions, so they'd staggered the arrivals of Diane and Phyllis. Summer said that was a brilliant solution. Noah suddenly spotted Phyllis and said they'd hit a little snag. Phyllis asked what was going on.