Toadie takes pleasure in informing Paul that Rebecca has the best lawyer possible in Portugal and when Paul laughs it off, Toadie warns him that Rebecca is serious. Later, Paul heads over to see Libby, using her as a means of getting the school to reinstate Lassiters as the school caterers.
Sucked in by Paul’s ‘I’m trying to make amends with the neighbourhood’ act, Libby takes Paul’s proposal to Michael, but he flatly refuses. Not giving up, Paul plays on Libby’s new-found mindfulness and forgiving nature to push her into changing Michael’s mind. Libby’s pleased when Michael agrees but he tells her he wants nothing to do with it and she’s in charge.
A smug Paul later reveals to Andrew that, with the new contract and Libby onside, Michael Williams is finished. But that’s not all, Paul is applying for a position on the board of directors at the school.
Kate’s nervous about her impending date with Kyle but Jade assures her she is doing the right thing. Lucas warns Kate that by going on a date with Kyle, she is giving him the wrong idea if she isn’t interested in him. Kyle takes Kate on a picnic and when he produces her favourite pudding, remembering just how she liked it, she realises that Kyle actually likes her and she freaks out, cutting their date short.