Phyllis and Patty face-off, Phillip makes a decision, and Mac gets the go ahead!

At the coffee house, Billy tells a freelance writer that he needs a 'do-gooder' for the cover of Restless Style - one with sex appeal. Mac comes in and he rushes over to tell her what he's doing. Mac says he doesn't have to impress her anymore - they broke up. She informs him that she's having the second part of her psych evaluation today and then going ahead with the surrogacy - Lily and Cane will have the baby they deserve! Billy wants to discuss it further, but Mac says he just wants to control her - his attitude is a deal breaker! Billy says he's losing his best friend - this whole thing is nuts! Mac says it gives her purpose. Emily comes in and Mac says goodbye to Billy.

At home, Lily plays with Humphrey, telling him that she is going for chemo. Cane comes into the room and they briefly discuss the surrogacy. Lily tells the dog that he will soon have to share them! Lily tells Cane if everything goes as planned, Mac can start her estrogen shots and could be pregnant in two weeks. Cane cautions her against becoming stressed. Lily is just excited. Cane says he is too. Suddenly, Philip comes to the door. Lily excuses herself. Phillip tells Cane that the cattle rustlers trashed the bar in Australia - if they find out where he is, they'll come for Cane too. Phillip says he has to go back and deal with this, but Cane thinks they should both go. Phillip feels Cane needs to stay with his wife. Cane urges Phillip to at least tell his family. Phillip says if they think he's in danger because of Cane, all the progress will be lost. Cane doesn't like it, but he'll respect it. Phillip says good luck and leaves. Cane tells Lily that Phillip is leaving, but hopefully he'll come back. Lily wants to research car seats until it's time to go. Cane looks concerned.

In Chance's bedroom, Chloe is giving him a fashion talk when he develops an unreachable itch. She's scratching it for him when Nina comes in! She has a tray of food, and puts it on the bed. Chloe apologizes if they made her feel uncomfortable, effectively making things worse. Nina leaves and Chance says he likes that she doesn't censor herself, but she maybe shouldn't have told his mom she's giving him a spongebath later!

At the Club, Kay looks at a proposal Jack is showing her - she's impressed - but tells him he's still not getting in on the stock offering. He smiles, saying it wasn't meant to be.

In Nick's office, Phyllis answers the phone - it's Patty's nurse saying that Patty wants to see Nick. Phyllis tells her it isn't going to happen and hangs up. Nick comes in, and Phyllis says the call was nothing - she'll handle it.

At home, Katherine is on the phone with Neil telling him the more subdued Jack is, the less she trusts him. When she hangs up, Nina is there, frustrated about Chloe. Katherine points out that she was much the same toward Jill. Nina protests, but realizes she's making Kay's point - she can't presume to know what will make her son happy. Katherine says he has to make his own choices, then points out how far they've come as a family - she should enjoy it.

Jack drops into Nick's office with some figures on how the business deal could work out for them. Nick still wonders what the catch is, but Jack insists he only wants his family to have control at Jabot. Nick warns he can't make this decision on a whim. Jack learns that Phyllis thought it was a good idea. Nick says he would hate to see Jack disappointed - he's been through a lot. They discuss the split over Restless Style, and Jack hopes they can rebuild their friendship.

Phyllis goes into Patty's room and asks her why she called her husband. Confused, Patty tells her she had the nurse call Diane's husband. Suddenly, Patty realizes something, and blurts, "It was you! You tried to steal Jack! I saw you having sex!" An orderly comes in to give Patty her pills, then leaves. Phyllis tells Patty she knows she's not Diane, but Patty says she doesn't know a Phyllis! Patty says she's tired of people telling her what she knows and what she doesn't - she saw them having sex, and mentions the little blonde girl who got sick when she kissed her. Patty tells Phyllis she left her no choice but to hurt the baby - Jack was hers and she took him! Phyllis and Patty scream in each other's faces intensely. Phyllis ducks out of the room and holds her head, saying, "Because of me, because of me."

Mac and Emily sit down in the coffee house to discuss the surrogacy. Emily still has reservations, but Mac tells her the reasons why she is a good candidate. Emily says she'll put her notes in order and submit her decision.

Billy arrives at the Chancellor Estate, and is greeted by Kay outside the door. He tells her what Mac is doing for Lily and Cane. Katherine is taken aback by the idea of Lily doing this when she's still undergoing chemo! Billy says Mac has no idea what she's getting into, but Kay reminds him she is capable of great sacrifice. Billy thinks they should get someone unconnected to them. Katherine asks if he wants her to plead his case with Mac. Billy realizes she doesn't necessarily see it his way.

Upstairs in Chance's room, Chloe and Chance discuss how their being together annoys Nina and Billy. Chance doesn't care what anyone thinks. They cuddle up and he kisses her head. She fusses as he decides to go downstairs with Delia. He smiles and says they're not going on a recon mission for a week. Chloe says she's going to get him a treat at Crimson Lights.

Phillip and Nina talk in the Chancellor living room. She wants to plan a dinner for Chance once he's up and around - she wants to celebrate her family being together. Phillip breaks the news that he's going back to Australia to take care of unfinished business. Nina is livid - how could he cause Chance to lose his father all over again?!

Mac comes home and Katherine asks her about her plans to be a surrogate. She tells her granddaughter that it's a great act of kindness. Katherine warns that it's easy to fall in love with a child you're carrying - she gave one up and hasn't forgotten the loss after all these years! Mac gets a text saying her evaluation is done.

Chloe is in Crimson Lights picking up a treat for Chance. Billy is there, and she remarks that he should stop following her. He says he is there hoping to see Mac. She calls him on being jealous of her and Chance. Billy says he had a moment of weakness - that's it. Chloe says he only wants what he can't have, so with her moving on and Mac dumping him - he's got to be freaking out!

Nick meets Emily on the patio of the coffee house. She tells him that Phyllis has gone to see Patty again. Nick angrily tells her that Patty needs to leave his family alone, and stop upsetting his wife! Emily says she doesn't know what this could trigger in her client!

Nina is upstairs in the Chancellor house beating the stuffing out of a pillow. Katherine thinks it's about Chloe again and chastises her. Nina turns and says it's not Chloe - it's Phillip - he's leaving again.

Chance is in the living room reading his Huck Finn book to Delia. Phillip is there and Chance thanks him again for the book.

Mac arrives at the hospital where Lily is undergoing chemo. She tells Cane and Lily that she is ready to help them have a baby - starting today!

At the Club, Jack and Emily have a drink. Emily tells him that Phyllis went back to see Patty again and she's worried - the last time, Patty talked about Jack and Diane non-stop afterward. Jack admits how awful it was what he did to Patty.

Phyllis returns to Newman, where Nick and Summer are busily making her something at the desk. They write We love you Mommy', and Phyllis thinks back to the screaming match with Patty!

Next on The Young and the Restless:
Michael dumps Ryder as a client!
Lily asks Mac, "You're not having second thoughts about being our surrogate, are you?"
Ryder is on the phone saying, "Lauren got your present. They think I'm the one who sent it."
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