Burt says that nothing can be done about Wendy's kidnapping because her mother took her, and since she hasn't asked for ransom it isn't kidnapping. But since Jody was awarded custody of Wendy by the judge two episodes earlier, Carol would not legally be allowed to just take Wendy, let alone across state lines. So, this is indeed a criminal kidnapping for which Carol could be arrested.
Right after Jessica tells Chester that he can stay in the pool house, when Chester stands up from the bed and exclaims "The pool... The pool house!", the boom dips into the top of the picture.