At Chris's urging, Peggy filed charges against Ron, even though she wasn't absolutely convinced that he had raped her. Thanks to a weak case, Ron was acquitted. But Ron's wife Nancy discovered that he was the rapist. The revelation traumatized her and she became schizophrenic. Soon after, Nancy was committed to a mental institution. Good-natured Chris, who was experiencing difficulty having children, decided to seek custody of Nancy's young daughter, Karen, even though Snapper feared that it would eventually lead to heartache for her. Ron agreed to give Chris and Snapper custody of Karen, believing that his wife would never recover from her mental illness. Ron also promised to stay out of their lives.

Nancy did recover and was released from the mental institution. She quickly set her sights on regaining custody of Karen. When Chris saw Nancy and Karen together, she realized that Karen still considered Nancy her mother and she reluctantly let the child go. Soon after, Nancy legally petitioned the court for custody of Karen and won. She then left town with her husband and daughter. Chris was so heartbroken that she separated from Snapper and also left town.

Eventually, Joann divorced Jack and became friends with Katherine Chancellor. The two women shared an immediate bond. Katherine enjoyed Joann's companionship and showed her appreciation by buying Joann gifts and a new wardrobe. Brock became alarmed by the attention that Katherine showered on Joann and warned that it was unhealthy.

Joann, who had finally gained self-confidence, lost weight . With a slimmer figure, she opened herself up to the possibility of meeting a new man, which disturbed Katherine. The two women planned a trip together to Hawaii, but just before they were about to leave, Brock confronted Joann with the truth about his mother's true feelings for her. Joann canceled the trip and distanced herself from Katherine.

At the same time, Peggy, who was still suffering from the aftermath of her rape, found it difficult to have sex with Jack. Eventually, she ended their relationship and moved back in with her parents. Jack found himself dazzled by Joann's new confidence and realized that he still loved her. When Jack proposed marriage again, Joann agreed to remarry him.

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