It is at this point where Dan has become closely acquainted with Phil Mitchell (Steve McFadden) — the square's local hardman who is also partly related to the Butcher family as he is Ricky's former brother-in-law and Frank's eldest stepson. Dan quickly establishes himself as Phil's best-friend as the two continue to bond over their relationship problems and business interests, with Phil even confining to Dan about how Ricky previously married his sister Sam (Danniella Westbrook) before his marriage with Bianca emerged years afterwards. Towards the Millennium celebrations, Dan finds Phil spending his Christmas alone at The Queen Victoria public house and comforts him over his wife Kathy Beale (Gillian Taylforth) and their son Ben leaving the county without him months ago. They soon proceed to form a business partnership when Phil sells his ownership of The Queen Vic to Dan for £5; with Phil having done so to spite his mother Peggy (Barbara Windsor) in retribution for supposedly favoring his brother Grant (Ross Kemp), who recently left the square following a botched criminal job between the brothers, more than him. Phil slowly regrets this decision after his girlfriend Lisa Shaw (Lucy Benjamin) confronts him for upsetting Peggy. However, Dan refuses to relinquish his ownership of the pub back to Peggy and later discovers that Phil is running a car lot scam with both Frank and their colleague Roy Evans (Tony Caunter). When Lisa is rushed to hospital one night, Dan offers Phil a lift to the hospital and the two begin arguing over his ownership of the pub — which Dan once again refuses to relinquish back to Peggy for £10,000. Phil lashes out in response to this, but Dan overpowers Phil and threatens to report him to the police. Phil backs down and leaves Dan outside of the hospital, where inside he finds out out that Lisa has suffered a miscarriage and that their unborn baby has died. The next day, Dan learns that Phil plans to kick him out of the house and responds by reporting his motor scam to the police; Phil later changes his mind after he makes amends with Dan, and the two plan on further establishing their partnership whilst Dan hopes to cover-up his betrayal from Phil.