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So, just to recap, in Chapters 1 and 2, we watched Gwendolen gambling in Leubronn; in Chapters 3-14, we flashed back to the previous year in Offendene and the events that led up to Gwendolen leaving to go on vacation with the Langens.
Now we're back where we left off in Chapter 2. Gwendolen has just left Leubronn to go back to England in response to her family's sudden financial ruin, taking with her the necklace that she pawned and which has since been returned to her.
What we didn't know before, but find out now, is that, while Gwendolen heads back to England, Grandcourt is actually on his way to Leubronn to find her.
We find out that Grandcourt isn't exactly passionate, but he is persistent.
The narrator tells us that Grandcourt liked to think that Gwendolen ran away because of the aloof way he acted around her in Cardell Chase.
Lush feels pretty awesome about the way things are falling into place.
There's a lot of gossip back at Diplow about Gwendolen's disappearance and how it might be related to Gwendolen refusing a marriage proposal from Grandcourt.
Mr. Gascoigne still thinks that something will happen between Grandcourt and Gwendolen – Mrs. Davilow hasn't told him anything yet.
Lady Flora Hollis is a middle-aged woman who is especially curious about what's happening between Gwendolen and Grandcourt. She tries talking to Grandcourt about Gwendolen.
When Grandcourt decides to go to Leubronn, Lush tries to make himself useful to Grandcourt so that he can go, too.
Grandcourt arrives five days after Gwendolen leaves Leubronn. When he gets to his hotel (The Czarina), Sir Hugo, his family, and Daniel are all already there.
To Sir Hugo, the fact that Grandcourt has to be his heir reminds him of the painful fact that he doesn't have a son of his own who can inherit his estates – he only has daughters who cannot inherit his property.
Unfortunately, Sir Hugo feels like he has to stay on Grandcourt's good side, so that when he dies Grandcourt will hopefully let the girls live at Diplow.
Grandcourt, on the other hand, feels like things will be much better once Sir Hugo is out of the picture. Uh oh.
Lush, Grandcourt, and Sir Hugo make small talk about gambling.
Sir Hugo asks Daniel where his "gambling beauty" – i.e., Gwendolen – is. Daniel says that she's gone.
Sir Hugo starts talking about how pretty this girl is, and then Daniel reveals that her name is Gwendolen Harleth. Lush isn't interested because he's already checked out the lists of gamblers and knows that Gwendolen has played; Grandcourt starts asking a bunch of questions about her.
Grandcourt reveals that he knows her. Later, Lush tells Sir Hugo that Grandcourt has been on the verge of marrying Gwendolen.
Later, when Daniel and Sir Hugo are alone, Sir Hugo mentions that Gwendolen must be worth "running after."
Daniel says he hopes that Gwendolen doesn't marry Grandcourt. When Sir Hugo asks Daniel if he's in love with Gwendolen, Daniel replies that he's more inclined to run away from her than anything.