Lori discovers she is pregnant but is convinced the baby is the result of the rape. Amber and Gil start dating and a dumped Vicki vows revenge on Gil. Dave hopes he and Kate will reunite. Ben and Dave open the Chesterfield Free Clinic. Charles agrees to pay the ransom for Miriam. Blue becomes attached to Miriam.
Russ discovers Blue was Lori's attacker and kills him in a shoot out. Gene locates Miriam but is held captive too. Russ manages to free Gene and Miriam but is shot after by Lance and his father Vince is killed. Lori finally accepts the baby is Ben's and not a result of the attempted rape. Kate is unsure whom her heart belongs too. Vicki changes the soil analysis report on the Canterbury complex that Gil is building resulting in the buildings collapse. Stacey helps Gil discover the truth.
Russ starts working at the clinic after becoming a changed man. Gil and Stacey start dating after he splits from Amber. Vicki is sent to prison. Lance is caught. Ben performs surgery on Nancy without her permission. Peter helps to get Vicki released from prison early and becomes romantically involved with her. Nancy starts dating Dan Myers and announces she is suing Ben. Amber tells Gil she is pregnant. Charles and Miriam fight for custody of Erick.
The custody battle for Erick gets underway. Having succeeded in splitting up Gil and Stacey Amber has a secret abortion. Kate marries Lee. Lori gives birth to a baby boy. Kate is found shot and dead in Amber's apartment and Dave is the chief suspect.
After being unable to return Peter's love Vicki leaves town. Dave learns he is to stand trial for Kate's murder. Terry vows to stand by him. New girl Courtney comes to town. Gil discovers the Amber has had an abortion and tries to get Stacey back. Miriam is awarded custody of Erick. Lee becomes Kingsley's new congressman.
Harold tries to prove there are others who could have killed Kate apart from Dave. Dan is only interested in Nancy because of the court case and has no intention of leaving his wife. Peter tries to find out more about Courtney. Stacey is put on the stand during the trial but damages Dave's chances of being found not guilty. Andrea agrees to take the stand.
Courtney is revealed as Charles niece. Miriam comes face to face with Jeremy Lance's twin brother. New evidence could clear Dave but puts Amber in the frame. Peter looks forward to his first proper date with Courtney. Stacey agrees to getting back with Gil and wants to marry right away. Dan is forced to get a divorce so he can get his hands on Nancy's possible settlement.
Peter discovers Courtney has a boyfriend already. Courtney tells Peter she wants to be with him. Nancy tells Terry and Lori thats she is getting married to Dan. Vaughn tells Preston that unless Courtney marries him his family won't continue to support Preston's business. Ben worries about the lawsuit. Lori tries to get Nancy to reconsider her decision to marry Dan.
Peter tells Vaughn to stay away from Courtney. Preston worries about his and Phyllis futures. Nancy learns Dan wont be able to spend Christmas day with her. The defense and the prosecution make their closing statements during the trial. Lori pleads with Nancy not to marry Dan.
Christmas is celebrated in Kingsley. Harold shocks the courtroom by announcing Stacey's fingerprints were found in Amber's apartment on the day of Kate's shooting. Stacey then cracks up and admits to shooting her mother. Dave is acquitted of Kate's murder and Stacey is arrested. Preston tells Courtney that unless she marries Vaughn the whole family face financial ruin and he wont be able to afford her mother's care fees.