At Lakeview, Simon asks Katie how she could write about their affair and put it in a computer! She says she was trying to sort out her feelings. He apologizes for what happened, but he says they're done. He suggests she go and fight for Mike, tell him what's in her heart. "It's going to take some time, but he will forgive you," Simon continues. He says Mike would be a fool if he didn't forgive her.
Taking off his wedding ring, Mike says he's not going to be a consolation. Carly sobs, "I chose the wrong guy." Meg orders Craig to stay away from her!
Meanwhile, at Jack's, Carly sobs, "I chose the wrong guy." She says he was right about Simon. She goes on to say she got in her car, but she didn't know where to go, so she came there, because she says she feels safe there. Jack states if she has a problem with Simon he doesn't want to hear about it. "I should go," Carly says. "No, I didn't mean to snap at you." He admits he walked out because his pride took a beating, but he says he had time to think and wants her back.
Simon walks in and interrupts, asking to speak with Carly. Jack isn't thrilled, he demands Simon leave. "I'm gonna give you a choice. You can leave here right now on your own, or I can help you leave," Jack warns.
Soon after, Jack's called to the station and must leave. He offers to escort Simon out, but Carly assures him she'll be fine.
After Jack leaves, Simon pleads for Carly's forgiveness. He says the look on her face after she found out hurt him. It's over with Katie, "totally over," he adds. He says he wants to be with her. She says he's a liar, confesses she walked away from a decent man she could have counted on for the rest of her life.
Walking through the door into his home, Mike flashes back to when Katie admitted she still has feelings for Simon. In anger, he picks up her laptop and pitches it out the door!
A while later, Katie enters, she immediately begins begging for his forgiveness. She asks him how she can fix things, what can she do. "Here's something you need to know. Once I walk out that door, I'm never coming back," Mike says.
In tears, she talks about their wedding and all the other good memories they've shared over the years. Taking off his wedding ring, Mike says he's not going to be a consolation. "Mike, please don't," Katie pleads. "You may want to put that in your next box of memories," he says. Katie, continues weeping as she begs him to stay. "You can't just take off your ring and forget me. It's too easy, and I will not let this be easy. I'm going to be after you, I'm going to find you and make you listen; make you know how much I love you. And then we'll remember. We will both remember how good it was. Please Mike. Please."
Without saying a word, he removes the ring, letting it fall onto the table. He walks out the door. "NO!" Katie cries hysterically as picks up the ring and clutches it in her hands.
At the hospital, Dallas confers with Meg. He asks if she was with Craig between the hours of eight and nine. Meg confirms. Paul informs Dallas she was sick when he arrived. He continues by saying she was out of it, and as a result he doubts she was keeping track of the time. Jumping in, Meg says normally she wouldn't check the time, but since she had to get ready for work she did. Dallas says they'll stay on the case, but so far, all they have to go with are worn break pads. Dusty informs Dallas it was more than just worn break pads. He goes on to say when he hit his breaks nothing happened. Dallas orders Craig to stay close to home.
As Craig starts to leave, Dusty stops him saying their not finished. With Dallas witnessing everything, Dusty says to Craig, "If you do anything to keep her (Lucy) from testifying, I'll kill you." Craig grins and asks Dallas if he heard that. Dallas confirms, cautioning Dusty about his statement in front of an officer. "Oh, if Dusty can't manage, I'm happy to finish the job," Paul adds.
Soon after, the doctor walks up telling Dusty it's time to set his arm.
Before leaving, Craig thanks Meg for her help. Paul pulls Meg behind the privacy curtain and confronts her about covering for Craig. He says he would have backed her up by saying Craig was not there when he arrived. Meg says she wasn't covering for him, she was sick and he offered to help her.
Craig stands behind the curtain spying on them. While spying, Emily walks up. She's angry, she says he won't get away with it, they'll find out she continues. "Find out what?" Paul asks as he and Meg step out from behind the curtain.
Dallas comes back saying he has nothing to hold Craig on, and tells him he's free to go. Paul, upset by the news, accuses Dallas of letting a guilty man walk free. Again, Dallas explains they have nothing to hold him for, but says he'll continue working on the case.
Later, Craig approaches Meg. Meg confronts Craig for telling Paul about the kiss. While quarrelling, she says she's sure if Paul hadn't come home and found them together, then he would have told him about that too. She orders Craig to stay away from her!
Meg approaches Paul and says since there's enough coverage for the floor she's going home. After Meg leaves, Paul asks Emily to call him if Craig does anything suspicious. She says she will.
Later, Paul arrives home and finds Meg. He asks why she gave Craig an alibi. She claims she told the truth to help him and not Craig.
"How does the truth protect me?" Paul inquires.
"Because the last time we lied, because of Craig, it almost destroyed you, and I'm not going to let that happen again," she replies.
"I can take care of myself," he informs.
He's certain Craig's guilty, saying he could have paid someone else to tamper with Dusty's breaks! She says she hoped he would support her and see how hard it was for her to do the right thing. He says he doesn't care what's right as long as Craig rots in hell!
Later on, he requests her to help him with Craig; operate at his level he suggests. Accusing him of being just like Craig, she grabs her coat and leaves. "Meg. Meg!" Paul calls out.
Back at the hospital, Lucy sits by Dusty's bed. He brings up tomorrow's trial. She assures him she'll be fine and recommends he rest now.
While Dusty sleeps, Lucy softly kisses his forehead saying she loves him and vows she'll never let her father hurt him again!
At Jack's place, Simon continues pleading with Carly. "We have so much potential. I don't want to lose you," he says to her. If only he had a time machine, he'd go back and change what conspired he says. She admits she still loves him. They kiss.
Outside, coming back from the station, Jack looks through the window and notices Simon and Carly kissing. He turns away, looking heated and hurt.
Next on As the World Turns...
Carly tells Mike she's still with Simon; she's forgiven him she says. She suggests he do the same with Katie.
Henry shocks Katie when he says he's going to help her get Mike back.