Guilt

Guilt is the fifth episode of season 1 and the fifth episode overall.

Summary
Victoria's vulnerabilities are exposed when feelings of guilt and a fight with her daughter beome to much to bear. A vindictive Lydia returns. Now aware that he has been betrayed, Daniel decides to make a major change.

Plot
The episode opens up with Lydia falling off her roof onto a taxi to her death. Then the episode rewinds to two days prior. Daniel needs some structure after he fell off the wagon. Conrad orders his son to come work for him. Tyler's joining the Grayson Global team, (Due to him pretty much asking for a job) too. In other news, security man Frank informs Victoria that her husband transferred $10 million to ex-friend Lydia's account in the Caymans. This leads to a heated chat between husband and wife, which Tyler just happens to overhear. He promptly lets Daniel know about his father's not-so-secret affair.

Victoria wants Charlotte to join her at an upcoming luncheon. That's not gonna happen. Instead, Charlotte swipes the new car Conrad had delivered for Victoria to so see Declan. As for the lunncheon, Emily is there to discuss the upcoming Open Arms charity gala. She convinced Ashley to have the organizers pay tribute to a charity that was created for the families of the victims who died in the plane crash linked to her dad. They'll be honoring one of the pioneers of the effort: Victoria.

This news is a bit of shock to the queen, as is the return of her old friend Lydia, who informs Emily that she's contesting the sale of her home. She's also there to dig up dirt on the woman who helped turn her life upside down. But Emily's the one who excels at digging up dirt. She informs Victoria that while Lydia was a patient of Dr. Banks, she wasn't exposed on the DVD to make Victoria suspect her ex best friend behind the DVD scandal. Emily ships some things over to Lydia's home including an item that contains a hidden camera. Nolan can see everything that's happening as Conrad pays her an angry visit. Lydia threatens to expose the Grayson family's involvement in the framing of David. After Conrad leaves, Lydia catches sight of Emily in disguise as a waitress in an old society function photo. Nolan informs Emily that Lydia is on to her. She wants Nolan to hack into the system of the catering company she worked for to delete her name which was still Amanda Clarke back then. At the gala, Victoria is seated next to a woman who lost her family in the plane crash. The guilt she feels for all that she's done is evident on her face. The hits just keep on coming when Victoria learns Lydia will be introducing her at the event.

Daniel makes seperate apologizes to both Jack and Emily for his behavior the other night. Both forgive him. Daniel, however, isn't so forgiving to Tyler when he learns his buddy tried to sabotage his relationship. When Daniel shows up at the gala, Emily must send Nolan to retrieve an incriminating fax from Lydia's place where Frank the security guy is already there snooping around. He informs Victoria that Lydia is behind everything and she's going to expose the Graysons during her speech.

Victoria has a little chat with Lydia just before her intro. Whatever she said worked, as Lydia's speech is an innocuous one. A short time later, Victoria makes it clear just how much she hates her ex-friend. When Lydia arrives home, Frank is waiting for her. The two of them get into a physical fight after he confronts her about the "wicked deeds" she has done. That ends with Lydia falling off the rooftop. Later, inside Lydia's place, Nolan switches the faxes, swipes the old photo and snags the hidden camera. When he hears sirens outside, he looks over the balcony to see Lydia's lifeless body below.

Charlotte gets pulled over by the police while joyriding with Declan. Daniel and Emily head down to the police station to pick up Charlotte while Jack is there to claim Declan. Daniel asks Jack for a bartending job at the Stowaway. Later, Daniel and Emily spend the night together. Missing Nolan's call informing her Frank killed Lydia.

Trivia

 * When Charlotte is texting Declan and she clicks to read a new message, his name is misspelled as "Delcan" on her phone.