The DUI Incident

The DUI Incident is the incident that caused Jeffy and Olaf to be adopted by Marvin.
Here's the full story:
So, Steve got drunk one day and then he went on a drive with Jeffy and Olaf. He got pulled over and he got the kids taken out of his custody and they were put in Marvin's custody instead.
That's why Jeffy and Olaf currently live with Marvin.
Thank goodness Cody wasn't also in the car and instead he was hanging out with Junior.