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The original Zorro, Don Diego de la Vega, is captured and imprisoned just as Spain concedes California to Santa Anna. 20 years go by and his mortal enemy, Don Rafael Montero, returns to California with a plan to become wealthy at the expense of the peasants. The original Zorro escapes from prison and trains a new Zorro to take his place. Much swashbuckling and derring-do ensues.