Lucy manages to get free from Duke Everlue’s grasp with some help from Happy, and she’s figured out the book’s secret. In the ensuing battle, Duke Everlue admits that he coerced Kemu Zaleon to write the book about him and imprisoned the author until he finished it three years later. Lucy, however, has realized that Kemu Zaleon cast a spell on the book, and to keep it away from Duke Everlue, she summons Cancer, her crab spirit. To counter this, Duke Everlue summons his maid, but that maid inadvertently brings Natsu with her. With Natsu’s help, Lucy is able to defeat Duke Everlue and wrecks his mansion in the process. They then return to Kaby Melon to give him the book, and Lucy has figured out that Kaby wanted the book gone so that he could protect his father’s pride. It turns out that after Kemu Zaleon, whose real name was Zekua Melon, had returned from writing the book, he hadn’t told his son how Duke Everlue had forced him to write it, and Kaby had been mad at him for neglecting his family for so long. His father died soon afterward, and Kaby’s hatred eventually turned to regret, leading to him wanting to destroy this book.
Before he can burn it though, the spell on it activates, and the letters in Daybreak rearrange themselves to form a new book, Dear Kaby. The book is actually a letter from father to son, and Kaby decides to hold on to it after all. Because of this – and much to Lucy’s dismay – Natsu decides that they can’t take the reward, and he’s also realized that the house that they’re meeting in isn’t Kaby’s real house. Kaby and his wife actually aren’t rich and had just borrowed the big house. Natsu, Lucy, and Happy then start the trip back home, and along they way, they run into Gray. Gray is in a hurry to get back to the guild because the strong and fearsome Erza will be returning too. However, the group gets sidetracked when Happy suddenly gets kidnapped, and to save him, they have to beat up the kidnappers. Afterward, one of the kidnappers says something about a lullaby, and shortly thereafter, all of the kidnappers get buried underground by a spell cast by a shadowy someone. Meanwhile, back in Magnolia, Erza arrives carrying a huge horn.
This was a surprisingly good episode, and it wasn’t even the action that made it so. In fact, the action was sort of a let-down because it was over relatively quickly, and I get the feeling that there’s going to continue to be a lot of stock footage of Natsu and Lucy’s abilities as the series moves forward. But what I enjoyed about the episode was the culmination of this arc’s story, and the scene where the real book was revealed was actually a little touching and not what I had expected. Hopefully it’s a good sign for the kind of stories to come, and the appearance of Erza was also promising since she appears to be one of the main characters according to the OP. I did find it a little odd though the episode didn’t end with the Kaby stuff and instead had the whole mini-plot of Happy getting kidnapped. That part felt a bit tacked on, but I guess its purpose could have been to introduce the next arc/villain.