A woman claiming to be Peter's long-lost daughter, Skylar, turned out to be an impostor of many disguises named Kit Marlowe, who was running from a devious Eastern billionaire, Roland Saunders. His life came to an end when Kit offered him a poisoned cigar moments before Peter fatally struck him on the head with a wrench. Dan Fixx showed up on Angela's doorstep claiming to be a relative. Angela gladly accepted him into the family fold, but this caused Lance to be insecure about his status. Julia, who was presumed dead, returned afflicted with a psychological blindness, and was sent to recover and pay for her past sins in a convent.

The season closed with many surprises. The Richard-Angela infighting continued, but the squabbling wine moguls had more in common than they realised. Peter decided to return to Greece and amicably divorced Angela. Before leaving town, he left Angela with the news that the child she was told was still born forty-five years prior had in fact been given to Jacqueline Perrault by Angela's husband, Douglas Channing. Angela's stolen child was her arch-enemy, Richard. A distraught Emma attempted to jump off the Falcon Crest roof, and Chao-Li, running to tell Angela of Emma's peril, fell down the stairs unconscious. The unstable Melissa kidnapped Chase and Maggie's new-born baby Kevin. With Chase, Dan, Richard and Maggie in pursuit, Melissa drove into the San Francisco bay.

The seventh season began with the news that Kevin, Richard, Melissa and Dan were rescued, but Chase was missing, presumed dead. Lance rescued Emma from the roof and Chao-Li was found to have cancer, but later recovered. After Chase was declared legally dead, the executor to his estate, John Remick, a mercenary who knew Chase in Vietnam, appeared and insinuated Richard had a hand in Chase's disappearance. Richard, romancing Maggie at the time, contacted a sinister group of businessmen known as The Thirteen to fund the North African junta Remick was fighting in before he came to Tuscany, to get Remick out of the picture. Word surfaced later than Remick was missing in action. Maggie was worried about Richard's shady dealings and escaped an explosion in her home.

Disappointed by Dan's romantic involvement with Melissa, Angela successfully lured a despondent Lance back into her clutches. Angela decided Melissa was a threat and schemed to drive her insane. Eric Stavros, a compulsive gambler, left for Monte Carlo with wife Vickie in tow. When Eric lost to a powerful poker player, Vickie was kidnapped and sent to Yugoslavia as part of a white slave trade. Richard contacted The Thirteen again for help in freeing Vickie. Richard proposed to Maggie and she accepted. Chase's will stipulated that the second of three codicils be read in the event of the couple's marriage. Richard and Maggie wed and the codicil left Chase and Maggie's Falcon Crest acreage to Angela. Richard agreed to join The Thirteen in an attempt to stop Angela gaining Maggie's land.

The third codicil from Chase's will left Melissa a key which he said would destroy long time foe Angela. Melissa headed to the Gold Rush town of Hobart and, after climbing through an underground tunnel with Lance while looking for the safety deposit box that the key matched, was trapped by a cave-in. While trapped Melissa discovered a deed to Falcon Crest made out to the Agretti family, which apparently won the winery from the Giobertis in a poker match. After Lance and Melissa were rescued from the cave-in, Melissa had the deed proven legal and ousted Angela and her family from their land. Lance and Melissa's uncle, Frank Agretti, disowned her.

Upon hearing of Richard's dealings, Maggie left him and moved into Falcon Crest and had a bout with alcoholism. Richard, devastated by his separation from Maggie told the FBI of his dealings with The Thirteen, but had no proof. Richard agreed to testify before a Senate committee. The Thirteen attempted to murder Angela, and upon her rescue by Richard, a reconciliation between the long-time rivals took place. Richard agreed to offer his life to The Thirteen in exchange for the safety of his family. Eric was brainwashed by The Thirteen and shot Richard. Tuscany Valley residents mourned his loss at a family burial. Angela secretly met with a bearded man sitting in a church pew and asked him, "Haven't you waited long enough? When are you going to tell Maggie you are alive?". It was uncertain if it was Richard or the presumed dead Chase.

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