Lee lost the case, and Jessie was sent to jail, but an eleventh hour confession by her stepdaughter Polly set her free. In 1969, Lee and Meg's marriage began to come apart when Meg's old nursing school friend, Iris Fairchild, came to Port Charles and used alcohol to solve her life's problems. Lee intervened and counseled her, giving her a job as his secretary and a reason to go on. Meg grew jealous of Lee's friendship with Iris, and accused them of having an affair. Lee and Meg separated for a while over Meg's unfounded accusations, but came together again when Lee donated his kidney to save Scotty's life. The following year, Brooke's marriage to Noel had fallen apart and Brooke returned to live with Meg and Lee. Meg was diagnosed with breast cancer, and after a radical mastectomy, Meg's insecurities about her appearance were magnified by the presence of sexy Brooke. Meg suffered a nervous breakdown from her jealousy and depression, and Lee was regrettably forced to institutionalize his wife. By 1971, Lee was thrilled to welcome Meg back from the mental institution, supposedly recovered from her mental breakdown. Now, Meg suffered from a severe case of hypertension. Lesley Williams, a strikingly beautiful doctor, was assigned to her case at General Hospital. The jealous Meg began to suspect—wrongly—that Lesley was trying to work her way into Lee's bed! During an argument with Lee, Meg suddenly died of a fatal stroke. Lee was devastated, but remained strong for Scotty. Lee defended Jessie against murder charges again in 1974, when Jessie stood accused of her ex-husband Dr. Phil Brewer's murder. Jessie saddened Lee when she refused to cooperate in her own defense. Lee urged Jessie to fight the charges, letting his emotions run away with him and kissing her passionately! Lee proved Jessie's innocence, but they couldn't rekindle their old relationship. To Scotty's delight, Lee Baldwin found a soulmate in adoption agent Caroline Chandler. After a marriage and a short honeymoon, the newlyweds returned to town to face the disastrous news that Caroline's son, Bobby, an energetic med student, was suffering from an incurable case of Melenkoff's disease. Miraculously, Bobby's certain fate was reversed when Steve discovered that Bobby's fatal diagnosis was wrong! Rejoicing from the welcome news, Lee and Caroline joined Bobby in New York where he received treatment. Lee Baldwin returned to Port Charles in 1977 after his wife died in an accident. Lee found comfort in long, warm and platonic evenings with Dr. Gail Adamson.