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Is Tad lying under oath?

The court calls a recess to deal with Jamie's bombshell. JR confronts Tad; Tad tells him it's a good thing, since Jamie has put "reasonable doubt" in the jury's minds. He's standing by every word he's said.

Kendall and Zach share a charged look across the courtroom. She tries to rush out of the courtroom to talk to Jamie; Ryan restrains her. But what if Zach is telling the truth, she asks. She turns towards Zach and sees Dixie running her fingers through Zach's hair.

David sits behind Dixie and taunts her.

Jeff and Erica try to comfort an upset Josh, who tells them he didn't "ask for anything." He says he has to be there to see this trial through to the end. He just wants "an answer" to who killed Greg Madden, so he can put this behind him.

Babe sits down next to Josh, and says she doesn't know who to believe.

"Daniel Kagan" is called by Livia as a new rebuttal witness. He's director of security for Pine Valley Airport. He says Jamie told him that Tad's an eyewitness—but Jamie has to be lying, since Tad was locked in the airport during the time in question.

He shows security footage of Tad locked into the airport offices at 10 PM on 6/5/06, and for the entire night. He says he talked to Tad the following morning, and got copies of Tad's driver's and PI licenses. Copies of the licenses are put into evidence.



Tad is recalled to the stand. Livia shows him a picture of Kagan and he says he doesn't know who he is. He's asked again where he was on the night of 15 June. Is it still his testimony that he witnessed her clients in the commission of a crime? Yes, he insists.

She shows him the security video, and he insists it's a fake. She says he concocted the story as revenge against Dixie. Tad becomes enraged. "That woman's buried me—she's taken everything I've got. That selfish bitch!...You are a murderer—so help me God, I'm going to make you pay."

Everyone's at the courthouse as the trial begins.

In the courthouse, Dixie asks Tad "You ready to burn me at the stake?"

Palmer tells Dixie that he's certain she'll be acquitted. David laughs at them, and Dixie tells him to go away. Livia tells Zach and Dixie to be careful not to show any rage or anger at the trial.


Palmer enters an anteroom where Tad is waiting, and tells him he has a way out to keep him from testifying—a pistol he's carrying. Tad disarms him—an anguished Palmer says he hopes God strikes him dead on the witness stand.

Brooke enters the anteroom to tell Tad that she can't find Jamie anywhere in the courthouse.

Erica and Jeff sit down next to Josh in the courtroom, saying they want to show their support for him. Dr Joe enters at that moment, and sits down in the back of the courtroom.

In the prosecutor's opening remarks, he claims to have ironclad evidence that Zach and Dixie committed murder.

Livia says that while Zach and Dixie had a motive, but didn't commit the murder, the prosecution evidence is circumstantial, and Tad is motivated by revenge and hate.

She cross-examines Derek; hereacts angrily when Livia accuses the police of questionable activities,

Josh has images of Julia attacking and injecting Madden; Di and Del planning to bury him; David digging the grave [but promising to release him if he tells the truth about Kate's whereabouts]; JR helping David; Dixie is observing.

Tad is called to the stand, and admits that the police bugged his house. He admits that Dixie eventually admitted to him that she and Zach were lovers. He says he saw Dixie and Zach in the airport parking lot the night Madden disappeared, and were putting a body in Dixie's car.

Livia asks Tad if it's true that he's there because Chief Frye told him if he didn't testify, he'd go after JR and Jamie for stealing evidence. Tad admits it's true.

He also admits that David helped Dixie get away from him when she was pregnant, and he believed her to be dead. Livia questions his feelings about Dixie not asking for his help in finding their daughter.

The prosecutor asks Tad about his "anger" regarding Dixie's actions, and whether that's affected his testimony. Is it the truth? Tad says it's all the truth—and Jamie and Di burst in, Jamie yelling "Liar! Everything he's said is a lie, and I can prove it."

Derek Thinks Jonathan Intended to Kill Terry

The police station is abuzz with activity while Annie and Jonathan wait to talk with Police. Jamal assures Annie a lawyer is on the way. A Law Enforcement officer starts questioning Annie. She explains that no officer ever did enough to stop Terry.

Derek enters his office telling Jonathan he understands why he had to kill McDermott – to save Lily! He treats Jonathan like a hero and Jonathan agrees. But Derek asks if Lily really willingly met him out in the woods? Jonathan realizes Derek might not think he's innocent and stops talking. Derek continues, acting like Jonathan went crazy seeing Terry and Lily half naked. Jonathan asks to call the hospital but Derek tells him he already did that and there's no new news. He tries to explain all the times Terry hurt children but Derek states "allegedly" hurt children. Jonathan explains that Terry made Lily believe he was someone else who had a mental disorder but Derek smiles reminding Jonathan that he did the very same thing.

Jonathan explains that he wasn't jealous of Terry, he was protecting Lily from getting raped by a child molester. He screams asking what's wrong with Derek? Derek plays the "bad guy" trying to understand and wonders why he booked a flight and purchased a gun 3 days prior to killing Terry? Livia, Ryan and Kendall walk in putting a stop to any further questioning and tells Jonathan to shut up. Derek replies she should go visit her husband down in jail! Kendall is surprised and didn't realize he was arrested.

Ryan replies that he won't press charges against Annie so she's free to go but Derek reminds Ryan that there's an outstanding warrant against Annie in New York. Derek tells Annie that her child will be placed in foster care until she can make arrangements to care for her again. Annie scoffs at Derek replying that he wouldn't protect Emma from Terry but he's going to arrest her?

She approaches Zach and he reaches out for her, touching her arm. She begs him for answers wondering why he went to Dixie when she begged him to stay at home with her and Spike. Zach replies telling Kendall he's ready to tell her anything she wants to know. She cries explaining that she's asked over and over repeatedly and wonders what's going to change now as she walks out the jail.

Ryan Discovers How Terry Entered the US

Lily approaches Terry in the forest telling him she's there to visit. He plays with her saying he can't talk and text messages her a few messages but she tries to reassure him that they're already friends and she feels very safe. She confides to her new friend who still won't show his face about her marriage and her abilities. Lily tells him they could be "not lonely" together and could be his girlfriend. Terry, disguised under a hood and glasses, smiles and looks up. Lily continues, assuring him they're alone and Terry lures her further into the forest. She suggests she'll teach her "new boyfriend" how to kiss and he walks further on. They find a cabin and go into it. Terry texts her again to say no light, he's too nervous. She promises, understanding that people like them have all kinds of issues and she understands.

She then asks her what he's doing as he pushes a large cabinet against the wall. Lily continues piling furniture against the door. She asks if he feels a lot safer now? He texts "very, ok to light lantern now". Terry pulls off his hood to show his face to a stunned Lily.

Jeff Goes to Babe For Advice

Dixie wonders to Zach if Derek will drop the charges now? He replies that he hopes eventually Derek will come around to believe they're having an affair. They discuss finding Kate, he promises they will locate her. Zach reaches out to comfort Dixie.

Kendall looks on watching the two of them share some ...intimate... touches but not hearing the conversation to know what's going on. She musters up the courage to ask Zach, as he leaves the room to ask him why he was in Dixie's bed earlier. He explains what happened and why. That they knew Derek was on his way to talk with them and Erica walked in on them first. He holds Kendall and tells her it's all going to work out.

Zach leaves and Kendall storms in to talk with Dixie. She tells Dixie that she's obviously working like hell to make this affair with her husband the ...real thing...! Dixie tells her if she has a problem to talk with Zach. Kendall tells her to play the part in public but not in private. Dixie plays dumb but Kendall tells her there's a camera in here and she's seen her working on Zach. Dixie tells her to just trust her husband. Unless you're threatened because you think Zach is attracted to me, replies Dixie...¦.

Kendall tells her that Zach is way too smart and way too in love with her to ever be swayed by Dixie's games. Kendall threatens her that if anything really goes down between the two of them, she'll go to everyone about this alibi being a lie and Dixie will go down...¦ ...DON...T test me... Kendall says and walks out.

Later, Zach meets up with Livia to discuss the case. Livia asks him straight out if she needs to be aware of ANYTHING else at all. Are there any surprises or concerns ahead? Zach tells her that the police is not going to find anything because there's nothing to find.

Livia tells him the odds are horribly against him. With forensic evidence like blood and fingerprints, it's hard to dismiss that even if Zach was set up.

Ryan and Kendall Share a Kiss

Derek, back at the station talks to Livi about not believing this affair. Derek swears to get to the truth, thinking this is all a set up by Slater. Later, Derek brings in a witness to question him on what he saw that night. Jimmy, the clerk, assures Derek that Dixie and Zach were there all night and he's certain because was playing poker all night and Zach's car was in direct view of his sight. Derek persists, demanding him to describe the woman with Zach! Jimmy keeps telling Derek he saw what he saw replying that she had blonde hair slicked back, she was wearing dangling earrings.

Livi then tells Derek it's about time to drop the charges on her client! Not a chance snaps Derek

Everyone Questions Dixie & Zach's Innocence!

Ryan, cuddling baby Spike, walks around the home trying to sooth him to sleep. Talking out loud he tells Spike how everything is going to be ok. Really ok.

Livia talks with Ryan telling him they'll be lucky if the judge allows bail. She goes on stating how Kendall needs her husband home with her but just doesn't know how the judge will allow it to happen. Ryan questions Livia asking her if she thinks they buried Madden? Before she can answer, Spike starts to cry. Livia rushes over and starts to coo over the baby, telling him how lucky he is to have the family he does. And Spike needs his mommy happy, reminds Ryan.

Kendall walks in. OH there she is, says Ryan. He tells her he just put baby down and asks if she wants to talk. Kendall falls into the chair whining how her brother is missing, she cannot get a hold of Bianca and her husband is in jail for a murder he didn't do. But Ryan worries, asking quietly if she's really ok. She replies that she's just tired. As Ryan walks over to Kendall, he soothes her, telling her to relax, pulling her shoes off, covering her up he moves to the back of the chair to rub her shoulders. Kendall leans into the massage having a flashback to her conversation with Tad earlier...¦. With Tad telling Kendall if she insists on looking into Zach and Dixie's true relationship...¦. She's not going to like the answers she finds...¦!

Later, in a dream scene, Kendall awakes to hammering sounds. She gets out of her chair and quietly walks toward the backyard door. Seeing Zach and Dixie hammering a coffin shut, Zach looks at Dixie telling her he can't be without her. Dixie, knowing Kendall is watching gives her wicked look and smiles. Kendall yells at them both that they can't do this, they can't bury Madden alive!

Startling herself awake, she looks up at Ryan and proclaims ...they did it.... ...Zach and Dixie killed Madden.... Ryan reassures her its just a dream. But Kendall tells Ryan of her talk with Tad. How Tad told her Dixie has men all around her. She's very bewitching, that Dixie can make men do anything she wants! Ryan asks her what Zach told her. Kendall replies that Zach said he's innocent. So Ryan proclaims to her to ignore Tad and believe in her husband! If Zach says he didn't do it, he didn't do it!