 Mike slugs Simon, and tells Carly that he slept with Katie. Katie swears she loves Mike, but he wants nothing to do with her. Simon tells Carly he s certain now that he wants only Carly, but she doesn t buy it. Simon and Katie are left alone, and he accuses her of wanting Mike to find out so he would ruin things with Carly. Carly comes to see the kids, feeling used and humiliated and confides in Jack that she s made a mess of her life. When Holden makes plans to take Lily out, she can t bring herself to leave the house. Jade tries to help her feel better about herself, but Lily confesses that she s having trouble coming to terms with her age and looks. Paul tells Meg he knows the reason Craig told him about the kiss was to cause a problem, and that she must decide whose side she s on. Jack cautions Meg about Craig s manipulations, and while she assures him she has things under control, Jack is still skeptical. Henry questions Emily s involvement with Craig. Emily assures Henry that she and Craig are just business partners, but Henry urges Emily not to get involved with Craig s schemes. He deduces that she s still not over Paul, and tells her not to get hurt again by conspiring with Craig to get Paul back. Craig comes to Lucy and says he wants a chance to prove he s not a monster. Although she loves her father, she can t take his veiled threats and demands that he be straight with her. Meanwhile, Dusty is slumped over the wheel after the crash with no sign of life. Paul finds Dusty by the side of the road and Dusty says he thinks his brake lines were cut. Paul rushes him to the hospital and there, Lucy tends to him. Later, Dallas confirms Dusty s suspicions about the brake lines and Lucy surmises it was probably her father. But Craig quickly assures everyone he was with Meg the whole time and Meg suddenly finds herself on the spot.