Ms. Hadley confronts Lily after claiming she saw the girl hide Ms. Hadley’s treasured peace-charm necklace outside and accuses her of stealing. Lily insists she found the pendant at the hospital after she accidentally dropped it and that her mother left it to her; Mr. Spencer and Mr. Foster are cited as witnesses. Emma counters that Lily made the necklace herself. The accusation sparks a scene of shouts and a physical grab for the necklace; Ms. Hadley, saying she's disappointed and invoking her late daughter, vows to take Lily away; Lily refuses, leaving ownership and what happens next unresolved.