Homeowner's Grading Caused Neighbor Water Damage

So one of my homeowner's had their driveway expanded & we got a huge rainstorm & their neighbor is claiming that (Because of my guys driveway work..) that the water was now redirected towards his house causing flooding.

Could my guy be liable for this? Would it go against their homeowner's liability? They had a contractor do the driveway so would it be his e&o?
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