Against her doctor's orders to ease her work load, Alison goes to D&D to meet with a client. Meanwhile, Michael hires Megan as the new receptionist at Burns-Mancini practice despite Peter's wariness. Kimberly is hospitalized and is told of a new problem in her medical condition that could help her or kill her. With Samantha's help, Matt tries to find his runaway niece while he argues with his mother over who will take custody of Chelsea. Amanda invites Craig for a weekend drive up the coast where she tells him of a new turn in her life of vowing to be celibate for an indefinite period. Sydney meets Hilda Morris, the woman suing her, and her sleazy lawyer, Harry Dean, who make it clear that they will not back down from the lawsuit and plan to take all assets that Sydney owns. At the end, Samantha's controlling, violent ex-con father, Jim Reilly, suddenly shows up for a surprise visit.

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Air Date March 11, 1997. After finally escaping Josh's abuse, Megan's life suffers more when she is evicted from her own house after word spreads of her arrest (and past life). Meanwhile, Chelsea stays with Matt at his place where she proves too much for him to handle. An eccentric customer sues both Sydney and Samantha after injuring herself at the boutique shop when a display falls on her, courtesy of Sydney's carelessness. Word gets out about Taylor's affair and past history with Peter after Alison overhears an argument between her and Kyle. Kyle's brief affair with Sydney sets off a chain of events among the tenants.

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Air Date March 3, 1997. Josh continues Kimberly's plan to break up Megan and Michael when he plays all three of them against each other and sets Megan up to be arrested for solicitation to make it complete. Meanwhile, Matt's angry and rebellious 16-year-old niece, Chelsea, arrives in town for the funeral of her father (Matt's older brother), and causes concern for Matt and his mother. After a torrid night with Craig, Amanda realizes her mistake and rejects him, but he becomes oblivious to it and still wants in on a relationship. Taylor's world comes crashing down around her after Nick gives Kyle more proof of her and Peter's affair, in which he throws her out of his apartment and forces Nick to leave town after he beats Peter up.

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