Watch the episode where Fran and her mother Sylvia are held hostage at the bank on Valentine's Day. At the beginning, Fran and Maxwell have a fight in which Max says he was sorry he ever said he loved her, which hurts Fran's feelings deeply. Niles is in the room when they are having the fight. Later on, Max tells Niles that he has done a bad thing, and Niles says, "You mean worse than telling Miss Fine (Fran) that you were sorry you ever said you loved her?" or something to that effect. Max asked him if he had been eavesdropping on their conversation over the intercom, and Niles admits he had. Hello?!! He knew about the fight because he was in the room!!