So after the beautiful, hot , steamy reconciliation, along comes Karen. Someone needs to drop a house on her. In her pettiness, she has no idea what the full consequences from her plans could be. She not only could ruin Damien, but also Bruce, and even Eden's Edge. (Since Karen is an employee, Bruce could sue the resort over her actions.)
Just a wild hunch - Kate deals with Karen. "Kate and I… we have an arrangement. I give her the life she always wanted, and in return…she...protects me,"