Season Two of Falcon Crest ended as Julia Cumson (Abby Dalton), the demented sister of ruthless Tuscany Valley winery owner Angela Channing (Jane Wyman) and the mother of Angela's playboy grandson Lance (Lorenzo Lamas), revealed herself to be the murderer of Lance's father-in-law Carlo Agretti--and in the process, gunned down Angela's nephew and chief nemesis Chase Gioberti (Robert Foxworth), as well as Chase's mother Jacqueline. Though Chase recovers from his wounds, Jacqueline dies and Julia is carted off first to prison and then a mental insistution--but not before Carlo's daughter Melissa (Ana Alicia) and Chase's half-brother Richard (David Selby) try to manipulate poor Julia into destroying Angela's reputation in the courtroom. As Chase is nursed back to health by Jacqueline's nephew Dr. Michael Ransom (Cliff Robertson), Angela tries to take advantage of the situation by having Chase declared mentally incompetent so she can gain full control of the Falcon Crest winery. To this end, she enlist the aid of an unscrupulous physician named Dr. Lantry (Ron Rifkin)--who, own his own, schemes to kill Chase so that he can blackmail Angela. Once Lantry commits suicide, Angela is off the hook, while Dr. Ransom, exercising his power as executor of Jacqueline's will, keeps the ruthless Richard in line by stipulating that Chase will give Richard half of Jacqueline's fortune only if Chase regards his half-brother as being totally trustworthy! Elsewhere, Lance tries to return to his wife Melissa, who refuses to have anything to do with him, holding him responsible for her father's death and their son Joseph's fragile medical condition. Actually, Joseph is not Lance's son, but instead the offspring of Chase Roberti's son Cole (William R. Moses), who after his affair with Melissa entered into marriage with Linda Caproni (Mary Kate McGheehan), the daughter of an immigrant's-rights activist who has long despised Angela and her family. Meanwhile, Chase's wife Maggie (Susan Sullivan) has an awkward reunion with her sister Terry Hartford (Laura Johnson), an unregenerate prostitute who hopes to claim her share of Maggie's newfound wealth; before long, Terry has not only wormed her way into the Gioberti household, but she is also making the moves on the virtuous Dr. Ransom. Angela decides to use Terry's sordid history as leverage against Cole when the latter tries to gain custody of baby Joseph. As it turns out, Melissa is more than willing to relinquish Joseph to Angela's custody in exchange for a piece of Falcon Crest--a bit of chicanery that drives Lance to near-madness! Near the end of the season, the "Cartel" story arc that will dominate Season Four is introduced, as Richard enters into an extremely shady series of business transactions in order to build a racetrack on Angela's land. Also, Chase enters into a battle with Richard to save the local wineries; articles published in Richard's newspaper expose the connection between the dreaded Cartel and the late Jacqueline; Maggie develops a brain tumor; and a scheme is hatched to assassinate Richard at the opening of his racetrack. In the cliffhanger finale, Julia escapes from the institution, taking baby Joseph hostage; Angela is poised to enter into a marriage of convenience with her unscrupulous lawyer Phillip Erikson (Mel Ferrer); and several of the principal characters face extermination in an "accidental" plane crash.
