This article sheds more light into his personality. I can imagine the need for money might have led him to Jack that Christmas (or to Jack's house). Maybe it was a meeting of chance, who knows?
One thing we do know is Jack did not suffer fools. If there was some sort of confrontation, I would imagine Jack spoke his mind with one thing leading to another.
Could Levene have taken it upon himself to try to burn down the Marini house, as a favor to his friend Jack Wheeler, resulting in a fight when Wheeler objected?