At the hospital, Nikki spoke on the phone with a frantic Phyllis, who'd been accused of purposefully feeding Summer the peanut cookies which put her in a coma. Michael arrived to discuss the case with Nikki and Victor. Nikki revealed that the guard blocking Summer's room wouldn't let them in with their grandchild. Michael explained that the court would appoint a guardian to Summer and that she could go into foster care. Victor implored Baldwin to have the court name him and Nikki as guardians. After, Nikki begged the guard to let her check in on Summer. He agreed to let her in for a minute, but the doctor revealed that there was no change in Summer's condition. Later, Michael informed them that the court agreed to let Nikki and Victor be her guardians. They eagerly went to sit with a still-unconscious Summer. Victor was ready to bring Summer home to the Newman Ranch, but Nikki thought it would be too much for Ashley to have to deal with a little girl in the house. Victor conceded that Summer would be better off at Nikki's. Nikki promised to take very good care of her. "I know you will," Victor replied, hugging his ex.

At Crimson Lights, Jana and Kevin cuddled and kissed. Daniel joined them; he and Kevin were determined to find out who really killed Balfour. Agent Aucker arrived with a warrant to search the coffeehouse; Amber then arrived and reamed out Aucker for trashing her and Daniel's apartment. Aucker revealed that Balfour's cell phone had been stolen from the evidence box. Amber defended Daniel, but Aucker requested that he take a lie detector test. Daniel agreed and passed with flying colors. After Aucker left, Kevin presented them with a chocolate cake ... which had the phone (which he'd stolen) stuck inside!

At the Chancellor Estate, Mackenzie revealed to a relieved Billy that Katherine was okay. They almost kissed, but pulled apart when Chloe came downstairs. He and Chloe discussed how he wasn't the father of Sharon's baby. Out in the backyard, Kay and Murphy hosted a July 4th barbecue, which Lily and Cane attended. Kay apologized to Cane for doubting that he's Jill's son. He urged Jill and Kay to be nice to each other for the holiday and told them how much he loves them. They were happy to be a part of his "crazy" family. Kay was thrilled when Pearl arrived. Pearl explained why Joe, Jr. wasn't with her. Mac, Esther, Billy and Chloe also came out back for the barbecue and Jill was pleased to hear that her sons were finally bonding. Neil then joined in the fun. Lily happily revealed that the DNA test proved Cane is Nina's son. Cane raised a toast to his family.... Pearl advised Jill to be nicer to Kay. Jill warned Pearl that Kay isn't the "sweet, old lady" she appears to be. Pearl then warned Kay to watch out for Jill, but Kay replied that she's used to her rival.... Murphy confided in Billy that he's afraid of losing Kay, but Billy believed that she'd outlive all of them. Billy then offered to purchase Murphy's trailer.... Lily and Cane doted over Cordelia. Chloe stated that Cane was in the running with Jack for best uncle.... Lily and Cane celebrated their first Fourth of July as an "old, married couple." Lily feared that she's too happy and that everything would be taken away from her.... Mac and Billy came up with excuses to leave the party and met up in a room at the G.C.A.C. They kissed and hoped that Kay and the rest of the family would be happy to learn that they're together.

At Phillip III's gravesite, Paul revealed that the blood sample Cane had tested contained blood which had been frozen. Nina was shocked and couldn't understand how this happened. Paul concluded that the sample that was tested wasn't the one Cane had given. She wondered if the blood had been frozen for 20 years and called Cane a body snatcher. Paul urged her to get all of the facts before confronting Cane, but she wanted to get to the bottom of everything immediately. Later, Nina stormed into the barbecue with Paul and demanded to know where Cane got the blood sample. Jill and Lily quickly defended him, but Paul verified Nina's claims. Nina realized that he'd switched the samples when he knocked the vials over and asked where Phillip was. Cane stammered that he didn't know what she was talking about, but then gave in and confessed that he isn't the "real" Phillip III after all. Jill and Lily were devastated. "This isn't true. It can't be," Jill said. "It's true," Cane whispered. "I'm sorry." Everyone else was dead silent as he confessed. "This can't be happening," Jill kept repeating. Nina was ready to call the cops, but Cane insisted that he didn't participate in the con out of menace. "I love you. I would never do anything to hurt you," he told them. Lily furiously replied that she doesn't even know who he is. Neil vowed that Cane would pay for deceiving them. "How can you do this?" Jill cried. "How could you do this to the people who've shown you nothing but kindness?" Kay echoed. Just then, an alive Phillip III walked into the backyard, shocking everyone present. "He didn't do it," he explained. "I did."