Ep 7. Where There's Smoke

After a fire accidentally guts the restaurant, Charlie is sure the insurance money will allow him to cover the losses he's been suffering. However, claims investigator Sam Arbogast balks at releasing the insurance check. So when Charlie finds himself being investigated for arson, Kirsten steps in to bail him out, claiming the fire was her fault. And after someone steals the restaurant construction crew's payroll, Julia suspects Griffin. Meanwhile, Will seeks Bailey's okay to date Sarah, and Claudia is befriended by Jody, a trouble-making classmate. As the police arrive with questions about the theft, an argument with his domineering father prompts Griffin to confess. With Charlie refusing to drop the charges and his dad unwilling to help, Griffin faces jail for the theft. Turning to Major Holbrook, Julia pleads for his understanding, warning him that he's about to lose his son. Meanwhile, even though her story may have got him off the hook with Arbogast, Charlie is upset that Kirsten thinks he really could be guilty of setting the fire, while Claudia is surprised when Jody steps in to keep her from getting in trouble. Though Julia discovers his dad came forward to help him out of his jam, she's upset to learn it means Griffin is being sent to a military school in Louisiana. And after Charlie pleads with Arbogast to believe him, Kirsten's apology helps put the matter behind them. Meanwhile, after deciding to talk with Will about Sarah, Bailey thinks twice upon realizing they are really in love. Finally, Claudia decides to give Jody a chance, while Julia watches as Griffin leaves for his new school, never to return.