A contractor's duty of care to homeowners is described in Stonegate Homeowners Assn v. Staben. In Stonegate, a general contractor hired a subcontractor to waterproof retaining walls and install backdrains in a large residential development. The subcontractor's work was below industry standards and resulted in seepage and drainage problems.

Court's Ruling. The court held that a subcontractor owes a duty to the homeowner, among others, such that "[a] subcontractor has a duty to perform work in a good and workmanlike manner. A subcontractor who is careless and negligent in the performance of the work is liable to the general contractor, to the owner and to third persons for any damages proximately caused."

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