Soon afterwards, Kate is assigned to investigate the "Imperial Room" nightclub, owned by square's reigning crime kingpin Jack Dalton (Hywel Bennett). She quickly becomes his secretary, but he soon discovers Kate's police identity and plans to have her killed - sending his employee, George Peters (Andy Beckwith), to rape and murder Kate in her house. Ironically enough, Phil has been visiting Dalton to observe how his criminal reign affects his neighbours around the square. When Phil learns about Kate working for Dalton and his plans to have her killed, he comes to her rescue just as Peters breaks into her house. Phil knocks out Peters and, after managing to persuade Kate to not get the police involved, orders her to go to the square's cafe on her own and wait for him to return after taking care of Dalton and Peters. When he does return that night, Phil forgives Kate and they continue their relationship - particularly when Dalton is later killed by Phil's love-rival, Dennis Rickman (Nigel Harman) (who Kate herself had a fling with in the past), and his representative Andy Hunter (Michael Higgs) takes control of Dalton's criminal organization: The Firm.