Phyllis Sets a Terrifying Plan in Motion — and Diane Comes Clean to Kyle

At Society, Billy tells Lily to grab a table — he’s going to give Chelsea a call and check on her again. Lily frowns, “Maybe she wants some space?” Billy replies, “Or maybe something’s wrong.”

In her apartment, Chelsea looks at Billy’s incoming call on her phone and flashes to her conversation with Lily, who told her Billy can’t be there for her 24/7.

On Crimson Lights’ patio, Sharon knows Adam is concerned about Chelsea and he wants to be part of her recovery, but she senses he wants to make this a competition between him and Billy, which is the last thing she needs right now. Adam asks if she’s suggesting he step back and let Billy continue to play the hero. Sharon thinks he should be grateful Billy was there for Chelsea. Adam was grateful and told him several times, but he and Chelsea should be working on this difficult situation as parents. Sharon is only on Chelsea’s side and warns him not to make this about him and Billy for Chelsea’s sake. She tells Adam he sometimes blurs the lines. Adam gawps, “And Billy doesn’t?!?”

At the Abbott mansion, Nikki arrives to update Ashley on Talia Morgan walking out on her and Phyllis. Ashley finds this very disappointing. Nikki’s frustrated that they finally have the information to take her down with and they can’t get it publicized. Ashley warns they’ve also lost the person who should be their biggest ally — Jack.

Ashley recounts to Nikki how she came in and found Jack and Diane in each other’s arms — she wanted to be sick. She adds that what he said afterward was shocking. “He said if I go to war with Diane, I go to war with him.” Nikki is flabbergasted and guesses this changes things for Ashley. Will she walk away from their plan now? Ashley tells her, “No way in hell.” Nikki’s relieved.

At Jabot, Jack stops Diane and tells her he made it clear to Ashley that she would be starting a war with him if she continued her attacks on her. Diane is grateful for his support but doesn’t want to be a source of tension between the two of them. She throws her arms around Jack as she lets him know his support means the world to her. Kyle appears and asks, “Am I interrupting something?”

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Diane explains that she and Jack were discussing a disturbing situation —Nikki, Phyllis, and Ashley have upped their attacks against her. Kyle asks how. Diane tells him he doesn’t have the full picture, so they step into Jack’s office. She tells her son that Tucker has another goal besides reuniting with Ashley — to takeover Jabot. Kyle asks what that has to do with her. Diane says Tucker asked her to access Jabot’s financial information and give it to him. Kyle fumes, “What?!” Diane says she didn’t do it and never intended to do it.

At Society, Lily tells Billy she’ll get them a table. He steps outside and she walks into the restaurant, where Daniel is telling a jubilant Phyllis and Summer that it’s looking more and more like he’ll be sticking around town. Phyllis hoots, “Yes!” Lily greets them and explains Billy will be right in, he just had to take care of something.

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Outside, Billy calls Chelsea and wills her to pick up.

At her place, Chelsea is contemplating Billy’s call when Connor slams in, obviously upset. Chelsea asks what’s wrong and he admits he got in a fight at school. Chelsea can’t believe this and reminds him that violence doesn’t solve anything. Connor protests, “I couldn’t let anyone get away with calling you crazy!”

In Society, Phyllis asks Lily about her hotel. Lily says they have big plans for it. Phyllis wonders if the plans will be affected by all the changes at Chancellor-Winters — she knows Nate jumped ship and took Sally Spectra’s job at Newman Media. Summer’s not even a little upset to hear Sally got fired. Phyllis raises her teacup and gloats about the justice of it all.

Daniel raises his eyebrows and says they’ll have to fill him in on who this Sally person is, but Phyllis says they don’t need to. “Trust me, the only reason she got the job at Newman Media is that she was sleeping with Adam.” Daniel guesses she’s telling him to steer clear. Phyllis confirms it. Phyllis asks Lily about Billy leaving Chancellor-Winters. Lily wonders where she’s getting the information from. Phyllis heard it from Ashley, who heard it from Tucker McCall. Lily replies that they have a lot of changes happening but are stronger than ever. Phyllis finds this a good PR answer.

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Outside, Billy leaves a message on Chelsea’s voicemail and looks concerned.

At Crimson Lights, Sharon and Adam debate about Chelsea’s problems being connected to Johnny. Sharon explains Billy left it up to Johnny whether he wanted contact with his biological mother. Billy wishes he’d take the same hands-off approach with Chelsea, who risks becoming dependant on him. Sharon thinks he sounds jealous. Adam denies it but points out he’s not the only one who has a problem with the dynamic — he assumes Lily does too. Sharon only knows that the conversation with Lily was Chelsea’s idea. Adam decides to go talk to her and find out what’s going on.

Up in the apartment, Connor reveals to Chelsea that some kid overheard him and Johnny talking about what was going on. The bully started saying stuff about her and he had to make him stop. Chelsea doesn’t know what the kid’s problem is, but Connor never has to defend her. “I’m not ashamed about what I’m going through. I can’t be because being ashamed is what stopped me from getting help sooner.” She recaps that she’s getting treatment but it’s a process. Chelsea’s sorry her son has to go through this but assures him that every family has something going on. She urges him not to fall for the bully’s goading. Connor asks what he should do if he feels angry. Chelsea encourages him to talk to her, Adam, or another adult he trusts. “I know you want to protect me, but it’s not your job.” Adam knocks and Chelsea lets him in. He’s surprised to see Connor and Chelsea says they need to have a talk as a family.

In Jack’s office, Diane explains that she only went along with Tucker’s plan until she could figure out what to do. Jack tells Kyle that once Diane told him what was going on he confronted Tucker in person. He came away believing he’s coming after Jabot. Diane adds that he told Ashley about her relationship with Jeremy Stark. Kyle wonders if it’s really that big a deal that they know. Diane’s only concern is what they’ll do with this information now that Jeremy Stark is released from prison.

At the Abbott house, Ashley tells Nikki that she won’t allow her brother to be manipulated by Diane again — she’s more determined than ever to get rid of Diane but they have to be more discreet. Nikki says Phyllis had the idea of contacting Jeremy Stark and planting the idea that Diane helped send him to prison. Ashley worries that he’s dangerous.

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At Chelsea’s apartment, Adam has heard about the bullying and wants the kid’s name. Chelsea urges him to calm down. They can decide how to handle it with the school later. Connor is sent to his room to do homework and Adam tells Chelsea they have to pull him out of the school right now or the kid has to be expelled — those are the only two options. Chelsea sighs that this isn’t anything new and they can’t just run away when these things happen. She hates this as much as he does but protecting Connor from everything isn’t realistic. “What we need to do is help Connor build confidence and strength to deal with these things head on without using his fists.” It makes her sad that someone is using her as a weapon to hurt their son but if she falls apart what chance does Connor have of getting through this? Adam nods.

Billy joins Lily, Summer, Phyllis and Daniel in Society and Phyllis asks him about leaving Chancellor-Winters. Billy is walking away for personal reasons but will always support Lily. Lily tells everyone that Daniel just pitched them an amazing idea and they’re in serious discussions to make it happen. Billy asks about the project but Phyllis reminds him he’s not privy to that information — he’s leaving the company.

At Jabot, Diane has seen up close what’s beneath Stark’s polished exterior and it’s not pretty. Phyllis, Nikki and Ashley have no idea how ruthless and cold-blooded he can be! Kyle says she’s making this guy out to be some kind of monster. Diane says he is. Stark can be abusive and unpredictable — she knows he would hurt her if he thought she helped send him to prison. Kyle sums up, “So there’s a potentially violent felon after you.” Diane says it’s not just her; he’ll go after the people she loves as well, so he and Harrison are at risk. Jack assures Kyle they’ll handle this together and he’ll do everything necessary to protect his mother. Diane tears up.

At the Abbott mansion, Ashley worries to Nikki about getting involved with a known felon. Nikki agrees; they don’t want to cause real harm; they just want her to leave town. Ashley says Diane told her he’d come after her whole family. Nikki points out she’ll lie to get what she wants. It’s maddening to see her manipulating Jack. Ashley complains she infiltrated Thanksgiving — she had to leave — Diane said she was grateful to have been accepted back into the family! Nikki feels it could get worse — she could end up living there again. Ashley vows that won’t happen; it’s her house too. Nikki warns with Stark out of prison, she wouldn’t be surprised if Diane used Harrison and the rest of the family to protect herself. Ashley agrees, “She’s actually putting us all at risk.” Nikki doesn’t think Stark would go after anyone but Diane, but Ashley says they can’t be sure. Nikki points out that Victor and Jack wouldn’t let anything happen to their families. Ashley doesn’t want to hand it over to them to do the dirty work. Nikki fears Ashley actually is walking away.

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At Jabot, Kyle promises Diane he’ll be there to protect her too. Diane rants that it’s so wrong that those women are using her past as a weapon. Kyle won’t let anything happen to her. They need to come up with a plan to make sure Ashley, Nikki, and Phyllis don’t actually reach out to Stark. Diane assures Kyle she won’t abandon the family again, but she doesn’t want to put anyone in danger. Kyle feels they have to let everyone know this isn’t a damn game.

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At Society, Billy fishes to find out what Daniel’s idea is, and Summer asks for a hint too. Lily intervenes to say they have to keep it under wraps for now. She makes a crack about not getting a chance to tell Billy because he’s been busy with other things. Phyllis and Summer fawn over Daniel and then head out. Lily steps away to take a call. Daniel tells Billy a lot has changed since he left town but, “You my friend, have not changed a bit.” Billy crosses his arms. “Meaning what?” He thinks it kinda sounds like an insult. Daniel is talking about him walking out when Chancellor-Winters was in the middle of a huge transition. He doesn’t know what would cause him to make that choice other than that’s just what he does. It’s a pattern from what he remembers, and Lily doesn’t seem all that thrilled. Billy says that’s none of his business. Daniel admits that he was surprised to hear he and Lily were an item — he thought she would have opted for someone steadier and more reliable after Cane. Daniel guesses old habits die hard. Lily returns and asks, “What did I miss?”

At Chelsea’s place, Adam apologizes to her for his initial reaction to Connor’s fight and gives her a hug. She accepts it then pulls away and goes to make their son a snack in the kitchen.

At Jabot, Kyle promises his mother they’ll deal with this and leaves. Diane asks Jack if she can take him to lunch to thank him for his support. Jack smiles, “How about dinner?” Diane’s pleased.

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In the corridor, Kyle encounters Summer coming out of the elevator and complains that Phyllis threatened his mother. She told her that maniac Stark would come looking for her if he thought she ratted him out. “Now he’s out of prison and if Phyllis puts a target on my mother’s back…” Summer tells him to slow down, they don’t even know if her mother actually said any of that. She’s sure if she did, she was bluffing. If Diane didn’t turn on him there has to be a way to prove that. Kyle’s expression changes. Summer gawps, “Diane did it.” She asks if Kyle is sure. Kyle explains she told him but swore him to secrecy for everyone’s safety. Summer fumes, “I should have known about this the second you and Jack did. This is my family too!” Kyle says she’s right, but repeats that this war is out of control. “I’m telling you, Summer, this has to stop now.”

At the Abbott mansion, Ashley worries to Nikki, “What if Stark does go after Diane and something happens to her as a result.” They’ll be responsible. The doorbell rings and Phyllis walks in. “Hey! It’s done, it’s done.” She reports that she spoke to Stark — anonymously of course — and told him it was Diane who made a deal with the Feds that ultimately landed him in prison. Nikki and Ashley’s jaws drop as Phyllis beams.

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Next on The Young and the Restless: Nikki learns Phyllis went rogue, Daniel reminisces with Lily, and Diane does damage control with Kyle.

Don’t miss Young & Restless sneak peek holiday photos in the gallery below.

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