Victor encouraged his brother, Matt, to romance Nikki, so that his daughter Victoria would have a man in her life. However, Victor's feelings for Nikki changed when he learned from her sister, Casey, that Nikki was suffering from a potentially terminal illness. In order to insure that Nikki's last days were happy, Victor reconciled with her. Meanwhile, Ashley discovered that she was pregnant with Victor's baby. Just as she was about to break the news to Victor, she accidentally heard him and Casey discussing Nikki's health. With Victor and Nikki back together, Ashley found herself alone. Realizing the dilemma that Ashley was in, as an unwed mother, Matt volunteered to marry her.

John Abbott discovered that his son, Jack, was the man in the photos with his wife, Jill. He ordered Jack to move out. But Jill won partial control of John's company, Jabot, as part of her hefty divorce settlement from John, after she threatened to expose to the press John's reason for divorcing her.

Shunned by his family, and out of a job, Jack blamed Jill as the source for all of his problems. When Jill was shot in her bathroom, she accused Jack of pulling the trigger. Rather than create more hurt for his father by having his affair to Jill made public, Jack confessed to shooting Jill. He was sentenced to work during the day in a shelter for homeless people, while spending his evenings in prison. Eventually, Jack fell in love with Ellen Winters who ran the shelter. But Ellen ended their romance because she felt that Jack deserved someone more worldly and sophisticated.

Meanwhile, the culprit who shot Jill was still at large. Eventually, Jill discovered that Sven, her former masseur, had tried to kill her. Sven kidnapped Jill and locked her in a refrigerated meat locker, where he left her to die. Fortunately, Jill was rescued by Jack and Carl Williams. Soon after, Jack was released from prison.

After spending several years in a Swiss boarding school, Jill's teenage son, Phillip, resurfaced in Genoa City for the summer. Rather than see his mother, Phillip moved in with Katherine Chancellor, who was welcomed his company. Katherine persuaded Phillip to enroll in a nearby school and he even agreed to take his father's last name, Chancellor.