Amanda throws herself a housewarming party, but forces Alison to work late so that she can hit on Billy. Alison continues to receive threatening letters and phone calls. Keith picks her up at work and takes her to the party. He slips something into her drink and tries to take advantage of her, but Billy interrupts. Keith purposely injures his head and claims that he was attacked. Billy doesn't seem to believe him. In order to dodge suspicion, Keith pays a homeless man to make an obscene phone call to Alison while Keith is present. Jane files for divorce. Michael moves in with Kimberly. Jake brings a bimbo to the housewarming party to make Jo jealous, and Jo agrees to live with him. They argue about everything. Matt loses his job when the halfway house shuts down.

Amanda's father offers Jake a high-paying job at his car restoration business. He refuses, but changes his mind after sleeping with Amanda. Jo is devastated by the news, but cheers up when Steve asks her on a date. Sydney prevents Michael from breaking up with her by threatening to expose their affair. Jane decides to take things slowly with Robert.

Jo, Alison and Billy go to Steve's ranch for the weekend. Billy is unhappy about Steve's attraction to Alison. Jo and Steve break up because she hasn't gotten over Jake. Jo confronts Alison after learning of Steve's feelings for her. Steve and Alison later share a kiss. Jake suspects that Palmer is engaging in fraud. Kimberly refuses to take Michael back.

Michael convinces Kimberly to have dinner with him. When she rejects his marriage proposal, he becomes very drunk. Kimberly changes her mind during the drive home, but Michael loses control of the car during their celebratory kiss. The car flips off an embankment, leaving Michael paralyzed and Kimberly in a coma. Michael blames Syd for the accident. The police suspect that Michael was driving under the influence. He pleads with Matt to change the results of his blood alcohol test. One of Sydney's co-workers takes her to a party. She makes a date with a director, unaware that he is under the impression that she is a hooker. Jo gives Alison the cold shoulder, and warns her that she is on the verge of destroying her relationship with Billy.

Alison learns that Steve is leaving for Europe in a few days. He gives her a new jeep and confesses his feelings. Alison joins him for a weekend on his ranch, but suddenly dumps him because she wants to reconcile with Billy. Billy's bitterness about Alison clouds his judgment on a writing assignment. Jake forces Palmer to confess to fraud on tape. Palmer convinces Amanda that Jake set him up, so she dumps Jake and plots to evict him. Michael falls out of bed, and Sydney refuses to help him until he apologizes for his past actions. Jo rejects Jake's thinly veiled advances, but Billy and Amanda sleep together.

Billy tells Amanda that he and Alison are back together. Amanda responds by removing Alison from the Microcomp account because she was romantically involved with the client. Amanda moves forward with her plans to evict Jake, but Jo refuses to testify against him. Amanda relents when she needs Jake's help with a plumbing problem. Palmer confesses his guilt to Amanda and skips town. She goes back to Jake. Jo goes to her ten-year high school reunion and runs into Reed, an old boyfriend who has just been released from prison. He later turns up at her apartment. Michael has a breakthrough at a physical therapy session, and regains the use of his legs. Sydney is busted for prostitution. Michael bails her out and agrees to keep quiet if she helps him break up Jane and Robert.

Reed plans to start over in Mexico after one last major drug deal. Jo knocks him overboard with a harpoon, but the boat runs out of gas. When Reed climbs on board and holds her at gunpoint, Jo is forced to shoot and kill him. She is arrested when the Coast Guard raids the boat. Alison accepts Billy's explanation about his date, but breaks up with him again when he falsely assumes that she is moving to New York. He follows her back to Los Angeles and surprises her with a marriage proposal. Sydney presents her blackmail demands and moves in with Michael.

Michael is astonished when Kimberly pays him a late-night visit. She reveals that she was in a coma for months, and that her mother claimed that she had died to keep Michael away from her. Michael dumps Sydney without explanation. When she brings a police officer to the hospital to have Michael arrested for manslaughter, Kimberly enters the room, prompting Syd to faint. Kimberly is plagued by headaches, and removes a wig in the bathroom to reveal a nasty scar on the side of her head. Amanda fires a model after learning that she is from the agency Models Inc., and is reprimanded by her boss. She reveals that her estranged mother, Hillary Michaels (special guest star Linda Gray), is the head of the agency. Amanda rejects Hillary's overtures, but Jake later convinces her to give her mother a chance. Alison takes back her decree about not sleeping with Billy until their wedding night. Alison's parents hire an obnoxious wedding planner, but Billy and Alison fire her and decide to marry in the courtyard of the apartment building.

Amanda is furious when Jake skips work to hold a bedside vigil for Jo. Jo is not seriously injured, and learns that her baby was unharmed. Billy warns Alison to keep quiet about Amanda's rendezvous with Chas. Jake tracks down Hank at a pool hall and beats him up. He shows up late for dinner with Amanda, sporting a black eye, and storms out when she lambastes him for defending Jo. Michael throws Billy a bachelor party at a strip club, unaware that Sydney is the entertainment. When she sees Michael, she runs out of the club and is fired. A drunken Billy accidentally tells Jake about Amanda and Chas. Jake breaks up with Amanda, who fires Chas and vows to destroy Alison. Jake admits his feelings for Jo, and she agrees to take him back. Kimberly alters the chart of one of Michael's patients, prompting him to unwittingly commit an error that nearly kills the man. He is stripped of the chief resident position. Kimberly bullies Jane into turning over the $5000 in profits she had kept from Michael. She tries to use the money to hire a hit man to kill Michael, but settles on doing the job herself.

Jo is certain that Amanda will not gracefully bow out of her relationship with Jake. Hillary refuses to believe that Chas tried to seduce Amanda. Chas files a $10 million sexual harassment suit against Amanda, and the agency does not support her. She turns to Jake for consolation. Sydney is assaulted by three hookers when she invades their turf. Kimberly comforts her and pays her rent. She convinces Syd to participate in her plot to kill Michael, and they plan the crime over ice cream. Michael stands in the way of Jane's plans to expand her business. Billy's college friend Rob comes to town to serve as his best man, and gets along well with Matt. Billy is stunned to see them kissing in the courtyard. Jake sleeps with Amanda. Jo catches him coming out of her apartment half-dressed. Jake insists that he doesn't want to reunite with Amanda, but Jo breaks up with him. Amanda tries to make nice with Alison in the hopes of convincing her to not to testify on Chas's behalf. Kimberly drugs Michael, and she and Syd leave him in his car with the engine running. However, Jane revives him when she and client Chris Marchette come over to discuss a business deal. Before the wedding, Michael refuses to sign off on Jane's business proposal, so she threatens to kill him. Kimberly steals Jane's car keys. As Alison is about to walk down the aisle, her father's words of reassurance trigger a repressed memory. She realizes that her father molested her during her childhood. He threatens to kill her if she tells anyone. Alison fails to emerge for the ceremony, and Jane and Billy discover that she has fled through the window. She seeks refuge at her sister Meredith's San Francisco home, unaware that her father has followed her. Chas's lawsuit is thrown out after Hillary and a maid overhear him taunt Amanda and admit that his accusations are false. As Michael steps into the hospital parking lot, Kimberly (wearing a short blonde wig) plows into him with Jane's car. Jane is arrested.