Steven finds himself in the middle of his parents' fight over a potential merger of their companies initiated by a plotting Alexis. Blake is dismayed when Steven accepts a job offer from Alexis and makes known his plan to move out of the mansion with Danny. In the March 30, 1983 episode "The Dinner" Steven visits Claudia, who had returned to the sanitarium after another breakdown during his absence. Tensions between Blake and Steven escalate further thanks to Alexis, who manages to keep her Steven away from a dinner planned by Krystle to mend fences between father and son. In the third-season finale "The Cabin", Blake learns that Steven is living with his attorney, Chris Deegan (Grant Goodeve). Suspecting that the men are more than friends, Blake decides to sue Steven for custody of Danny.