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At Society, Victoria tells Nick on the phone that she and Billy are about to meet with the kids to prepare them for the war with their grandfather. She’s all for her mom taking the reins at Chancellor, but she dreads the fallout. Nick thinks she’s doing the only thing she can right now. Victoria says the kids are there and disconnects.

On Crimson Lights’ patio, Phyllis walks in looking disheveled. Nick asks her what’s wrong. She tells him something horrible happened. Heather’s dead. They pulled her body out of the river this morning. “Daniel’s telling Lucy right now.” Phyllis stammers that this is shocking… it doesn’t even seem real. Nick asks if she drowned, “What was she doing down by the river?” Phyllis doesn’t know. Daniel got a text from her saying she needed space and then got a call from the police saying they’d found her body. Lucy’s mom is gone, and Daniel can never fill that void. Nick says they have her and Super Girl. “You have me for whatever you need.” They embrace.

At Daniel’s apartment, Lucy says, “This is about mom, isn’t it?” Daniel says it is. Lucy worries she did something else to make her mad. Daniel tells her she didn’t do anything wrong. “There’s a reason why we haven’t heard from your mom.” His voice cracks, “Something’s happened.” Lucy asks if she was in an accident, “Is she OK?” Daniel cries, “No, she’s not OK. Lucy, I’m so sorry. I don’t know how to say this… your mom has died.” Lucy jumps up and asks her dad why he’d say something like that. He says it’s true. “Your mom is gone.” Lucy sobs, “Oh no, oh no!” Daniel takes her in his arms.

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Lucy thinks maybe this is a mistake and she’s just missing. “Who told you?” Daniel says, “The police… right after they found her body in the river.” Lucy protests that her mom knows how to swim. Maybe it’s someone else! Daniel says he went to the morgue and saw her body. Lucy cries that she doesn’t believe him and wants to see her. Daniel shakes his head. Lucy wants to see her and talk to her, and tell her she loves her. “I want her here, dad.” Daniel cries that he does too. He tells his daughter she’s not alone. “I am right here, and I am not going anywhere no matter what.” He holds Lucy as she cries.

At Sharon’s place, she tidies up. Cameron appears and notes her good mood. She says her doctor thinks she’s making remarkable strides controlling her dark thoughts. He’ll be gone any day now. Cameron thinks she likes having him around. Sharon tells him he’s nothing but a reminder of what she’s done. He counters that he’s the one telling her to move on. Sharon picks up her phone and says, “Nothing in the news.” Pushing play, she learns a body was pulled from the river this morning. She gasps, “My God! Did they find Heather?!”

Sharon rails at Cameron… he told her this wouldn’t happen. “You lied to me! You told me that nobody would find out!” Cameron tells her she covered her tracks. “You’re good.” Sharon screams, “Why did they have to find her?!” Cameron says she can’t control river currents. Sharon flips, “What am I supposed to do now?” Cameron says she has to pull herself together. Sharon doesn’t know if she can. Cameron warns she has no choice… orange really isn’t her color. Sharon rants to herself that they’ll be coming for her once the investigation starts. Cameron says they think she drowned accidentally. The text she sent Daniel was perfect. He muses that there might be a way to turn this in her favor, so she can finally get the closure she needs. Sharon hollers, “I have already caused enough pain!” Cameron thinks that if she follows their plan, the nightmare will end, and Daniel will get what he deserves. “You know I’m right, Sharon. This is the only option that you have.”

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In the jazz club, Victor meets with Lily, who wants to have a check-in about Chancellor. Victor likes the idea that she refuses to acknowledge Billy’s name change. Lily says his name will soon be off the marquee and everything, and everyone, will be back in their place. Victor tells her that her tip about Odyssey 7 paid off. Lily thinks they should make their move now. “We have to kick Billy out and put me back in control.”

Victor doesn’t have enough ammunition to kick Billy out right now. They must be patient. The fact that he’s aware that outside forces will make him dig in… they’ll have to be patient. “It ain’t gonna be easy.” Lily learns that Victoria let Billy know that Newman was willing to buy him out. She deduces that he now knows an attack is coming. Victor wants to hold off and then catch him when he least expects it. Lily worries they’d ben giving him time to do more damage. The solution may be to plant a spy.

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At Society, Billy tells the kids that he has to focus on work and doesn’t have time for a relationship. Katie and Johnny are bummed about his split with Chelsea. Billy won’t be sad if they’re staying there to go to school. Victoria goes on about how great it is, and how happy she is that Katie got close to Claire. Katie and Johnny confirm they want to go to Walnut Grove. They toast. Billy tells them if they’re staying in town, there’s things they’ll be exposed to. Victoria and Billy preview that Chancellor and Newman Enterprises are fierce competitors. Billy says their grandfather may try to spoil his success, but he has no intention of letting him win.

Katie doesn’t get it… her grandfather is so sweet. Why would he want to fight with her dad? Billy says that years ago, Victor sold Chancellor to Jill, but now he wants it back. “It’s not for sale.” Victoria thinks her father is well within his rights to want it back. They debate. Johnny asks why Victor needs another company. Billy thinks that’s a good question, “How much does one man really need?”

In Daniel’s apartment, Lucy cries that she keeps remembering the last conversation she and her mom had. She worries about her recent behavior and asks, “How could I have been so hateful?” Daniel says Heather knew how much she loves her… they both did. Lucy sobs that she never hung up the phone without saying, “I love you,” and she can’t remember the last time she said it back. She asks if he’s told Paul yet. Daniel hasn’t been able to. Lucy says Heather wanted so badly to go back to Portugal. She didn’t get to see her dad again because of her. Daniel assures her she’s not to blame. Daniel wonders, “How are you supposed to tell a man that his daughter’s gone?”

At Crimson Lights, Phyllis tells Nick she can’t imagine what Daniel’s going through right now, or how he’s going to tell Lucy. Nick says it will be hellish, but being there for her family is what she does best. She needs to reassure Daniel and Lucy that they aren’t alone. Phyllis tells him, “You’re so good at this.” They hold hands across the table as Sharon walks in and sees. Nick tells Phyllis he’s sure that when she gets around Daniel and Lucy, she’ll know what to do. She gets a text from Daniel saying Lucy took the news hard. Nick hugs her and she leaves.

Inside, Cameron tells Sharon, who’s watching Nick and Phyllis’ goodbye, that she’d better set things straight before it’s too late… those two have a habit of falling in bed together at the first sign of a crisis. Sharon says, “No. I can’t do it. I won’t.” Cameron snarks… is she alright with Daniel walking around free while Phyllis uses Heather’s death as an excuse to get with Nick? Sharon snaps, “I can’t do it. I won’t!” Suddenly, Nick appears and asks, “Sharon? Are you alright?”

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At Daniel’s place, he tells Paul over the phone that Heather died. He tearfully says they don’t know too many details, but her body was found in the river. He doesn’t know what she was doing down there. “Lucy is not good… I don’t know how either one of us is going to go on without her.” He asks Paul to come out there. “Keep me posted. Paul, I’m so sorry. I’m so sorry.” After hanging up, Daniel punches the desk and screams before breaking down in more tears.

Phyllis arrives and Daniel marvels that just a few days ago they were laughing about peanut butter sandwiches, and today he’s identifying Heather’s body at the morgue. He says Lucy’s in the bedroom and is inconsolable. She and Heather were inseparable. Phyllis assures him they’ll get through this as a family. He can’t sleep in their bed without her and worries about having to bury her. Phyllis tells him he doesn’t have to think about that yet. She offers to call Danny. Daniel accepts; having to tell Paul was hard enough. Lucy appears and runs crying into Phyllis’ arms.

At Crimson Lights, Nick tells Sharon he just got awful news. “Heather Stevens is dead. They just pulled her body from the river this morning.” Sharon says that’s awful and asks what she was doing down by the river. Nick doesn’t know. He ruminates about Daniel being in shock and Lucy being devastated. “A lot of hits for one person to take.” Sharon says, “Yes it is, and it’s all my fault.” Nick frowns, “Why is this your fault?” Cameron eyeballs Sharon, who says that maybe she was still upset with her and that made her distracted and she slipped and fell. Nick can’t understand her taking responsibility for her death. “Seriously?” Sharon says he’s right, it was just a tragic accident. Here she is making it about herself when two people have lost their loved one and have no idea how to go on without her.

In the jazz lounge, Victor tells Lily he likes the idea of a plant inside Chancellor. “Who do you have in mind?” Lily isn’t sure, but lets Victor know that Phyllis is the new COO. Victor muses that there might be ways to use her without her cooperation. Lily has an idea. She tells Victor she has it under control, “You will not be disappointed.”

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At Society, Katie and Johnny have to go and urge their dad not to let Victor bully him. After their gone, Victoria accuses him of making her father, their grandfather, into the villain. Billy points out he’s coming after him. He’s fighting for something he loves. This is his chance to prove his mother was right to hand him the reins. Victoria knows what this means to him. He asks, why then, doesn’t she stop her father from coming after him. Victoria says there are aspects of her father’s plan that he doesn’t even know about yet. Billy asks her to help him understand. “What are these aspects you’re talking about?”

Billy and Victoria walk outside, and he keeps pushing her to open up. She’s already said all she can say. Billy says fine. At least they were able to prepare the kids. He guesses since she can’t say anything to him, that this is going to get ugly.

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In the park, Lucy wishes this was all a bad dream. “Dad, I’m never going to stop missing her.” Daniel cries, “I know. Me too.” He asks if she wants to go walk by the pond. They take a few steps and Sharon crosses their path. She says Nick told her the horrible news about Heather. “I’m so sorry for both of you.” Daniel says thanks and tries to steer Lucy away. Sharon keeps talking. She feels horrible about the things she said to her. Daniel says it doesn’t matter now. Sharon hopes that some day Lucy will forgive her. She doesn’t know if she can forgive herself.

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Next on The Young and the Restless: Adam gives Chelsea some tough love, Billy commiserates with Sally, and Daniel struggles with his new reality.